Analysis Topic: Commodity Markets - Metals, Softs & Oils
The analysis published under this topic are as follows.Wednesday, December 22, 2010
Gold Flows to China Rise Sharply Ahead of New Year as Savers Reject Negative Bank Interest Rates / Commodities / Gold and Silver 2010
WHOLESALE PRICES for gold moved sideways around $1390 per ounce in London on Wednesday morning, little changed as world stock markets also held flat but crude oil crept above $90 per barrel.
Silver bullion traded inside this week's tight range below $29.50 per ounce.
Wednesday, December 22, 2010
Gold Rises as UK Finances Deteriorate and IMF Gold Sales End / Commodities / Gold and Silver 2010
Gold Rises as UK Finances Deteriorate and IMF Gold Sales End
Gold and silver edged moderately higher again yesterday in most currencies. Profit taking and book squaring prior to year end have led to lacklustre range bound price action. News that the IMF gold sales to central banks has been completed, saw gold prices rise slightly. Despite the gold sales being off market - directly from the IMF to creditor nation central banks diversifying monetary reserves - the potential overhang of IMF gold supply and perceived risk was one of the few bearish factors in the gold market.
Gold is currently trading at $1,389.32/oz, €1,057.08/oz and £898.31/oz.
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Wednesday, December 22, 2010
Uranium Is Still a Growth Industry / Commodities / Uranium
Rodman & Renshaw Senior Analyst Alka Singh follows the entire mining sector, including uranium. Though just a year ago the uranium sector was considered stalled and possibly moribund, she finds undervalued stocks for her clientele that includes both small and large institutional investors. In this exclusive interview withThe Energy Report, Alka generously shares some names for growth that investors might consider to take advantage of burgeoning energy demand that will surely include nuclear power plants all over the world.
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Tuesday, December 21, 2010
Silver Outperforms Gold - Profit! Silver Underperform Gold - Profit Again! / Commodities / Gold and Silver 2010
In our earlier essay, we saw how the silver-gold pair is ideal to bet on for mean reversion. We also saw how to make use of the mean reverting properties of any ratio. Continuing on that topic, we will investigate whether mean reversion holds true for the gold-silver ratio in particular. We will examine variables one should watch over when looking at regime changes (points where the mean is set to new values). We will also explore a simplistic trading strategy on the ratio based on some core parameters that determine entry and exit points.
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Tuesday, December 21, 2010
Silver and Gold Short-term Uncertainty, Could Follows Stocks Lower / Commodities / Gold and Silver 2010
The past week has failed to provide clear signals in most markets worldwide. Perhaps the uncertainty of the financial stability of several European countries further compounded by normal holiday and year-end influences have thus far made December a difficult month to read.
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Tuesday, December 21, 2010
Gold 2011 Forecast at $1500, $1600 or "Outrageous" $1800 on Euro Crisis, US-China Currency War / Commodities / Gold and Silver 2011
THE PRICE OF GOLD in professional wholesale dealing touched a 4-session high early Tuesday at $1390 per ounce, rising for Euro and UK investors as world stock markets hit new two-year highs.
Platinum prices rose to $1715 the ounce at today's London Fix, gaining some 14.6% higher from New Year 2010.
Tuesday, December 21, 2010
Gold's 2011 Bullish Outlook as US at Risk of Joining Eurozone in Debt Crisis / Commodities / Gold and Silver 2011
Gold is up slightly after yesterday's 0.5% gain and appears to be consolidating just below $1400/oz. Gold is being supported by growing energy and food inflation and continued sovereign debt concerns. Recent days have seen the cost of insuring French debt rise to record levels and France's AAA rating is now at risk due to the spreading Eurozone debt contagion. Nor is the US immune to the debt crisis as many US cities are at risk of defaulting in 2011 (see news below). Gold may be anticipating problems in this regard in 2011 - as it has done in recent years.
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Tuesday, December 21, 2010
Crude Oil, Natural Gas and the AMEX Oil Stocks Index Analysis and Forecast Update / Commodities / Crude Oil
The daily chart of oil is shown below, with upper Bollinger bands above the index, suggestive that a short-term top was put in place. Lower 21 and 34 MA Bollinger bands are in close proximity to each other and starting to rise, indicating 2-4 weeks of sideways to downward price action. Full stochastics 1, 2 and 3 are shown below in order of descent, with the %K above the %D in 1 and 2 and beneath the D in 3. The %K in stochastic 1 noticeably hooked down, further confirming 2-4 weeks of weakness in prices. The next level of support is at $83/barrel.
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Monday, December 20, 2010
Gold Stocks Upside Greater than Gold Bullion Price / Commodities / Gold and Silver 2010
Frequently prospecting for new mining companies in natural resource-rich nations, Rodman & Renshaw Senior Analyst Alka Singh is just back from Argentina. The Gold Report caught up with her to sift through her thoughts on the precious metals industry. Her current objective is to seek out gold and silver producers with growth potential beyond the price appreciation of commodity metals.
The Gold Report: You follow both precious and base metals for Rodman & Renshaw. From the lay investor's perspective, what's the difference? What are the value drivers in precious versus base metals that investors should know?
Monday, December 20, 2010
Fed Shortsighted QE Policy Fuels the Continuing Gold Price Rise / Commodities / Gold and Silver 2010
“Washington doesn't agree on much these days, with one glaring exception: that the U.S. is facing a long-term fiscal crisis. The federal government's debt is now $13.8 trillion and is projected to hit $20 trillion by the end of the coming decade-when it will be the highest level as a share of the economy that the U.S. has seen in 50 years. In September the International Monetary Fund warned that the U.S. is moving dangerously close to a point at which spooked markets will send interest rates on new borrowing to devastatingly high levels. As it is, the government is on course to spend $1 trillion per year on interest costs alone-about a quarter of all federal spending. ‘We are accumulating debt burdens that will rival a third-world nation within 10 years,’ says David Walker, former chairman of the nonpartisan Congressional Budget Office. ‘Once you end up losing the confidence of the markets, things happen very suddenly-and very dramatically. We've seen that in Greece, we've seen it in Ireland, and we must not see it happen in the United States.’" - Michael Crowley, The New York Times
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Monday, December 20, 2010
Why Gold is About To Power Higher to Complete a Big Rally / Commodities / Gold and Silver 2010
The gold bull has been moving in very reliable Elliott Wave and Fibonacci patterns for many years now, but once in awhile the waters get a little murky for sure. Recently we have seen a fair amount of volatility near year end as position squaring and year end machinations take hold. With that said, it does appear that Gold should be poised to power higher near term, and I’m looking for a completion to a 5 wave rally that began from about $1,040 per ounce in February of this year.Read full article... Read full article...
Monday, December 20, 2010
Obama Tax Cuts Will Push Investors Further to Gold / Commodities / Gold and Silver 2011
Starting January, American workers will start to see changes in their paychecks as the Social Security tax break that was signed into law last Friday takes effect. Workers normally allocate 6.2% of their wages to Social Security on the first $106,800. This will be reduced to 4.2%. The Social Security tax cut is just one part of the package that was passed. Additional measures include extending benefits for the long-term unemployed and passing a lower tax rate for inheritance above $10 million (from the proposed 45% to 35%).
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Monday, December 20, 2010
Canadian Central Bank Votes for Gold / Commodities / Gold and Silver 2010
"...Bank of Canada Governor Mark Carney tried to calm everyone's nerves by declaring that gold 'has no role to play in the international monetary system.'" - Globe and Mail, November 12, 2010
Carney did not calm the nerves of Hans Merkelbach, investor, advisor, investor advocate, and watch dog of money manipulators, who wrote to the central banker from his office on Bowen Island, British Columbia. After quoting the above, Merkelbach rebuked Carney:
Monday, December 20, 2010
Gold and Silver Trend Line Targets / Commodities / Gold and Silver 2010
Right now commodities are where the action is in the financial markets. And the precious metals are where the action is in the commodities market. And silver is where the action is (for the time being) in the precious metals markets.
Silver can be described as gold’s little brother. It lags along behind gold, underperforming for a long time. Then, all of a sudden, it comes to life, makes up all of its underperformance and goes on to exceed gold to the upside.
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Sunday, December 19, 2010
Gold and Silver Investing Facts That Can Make You Rich / Commodities / Gold and Silver 2010
The year is drawing to a close, so it’s good to look at four important developments in precious metals you may have missed in 2010. You don’t want to miss these four because they can make you rich.
Let’s get started …
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Sunday, December 19, 2010
GDXJ Gold Stocks ETF Investment Is a Snow Job / Commodities / Gold & Silver Stocks
Folks looking to make a fortune in small gold stocks need to be careful: There's a right way to do it... and there are a lot of wrong ways to do it.
One of the wrong ways to do it is by owning one of the world's most popular ETFs right now. The symbol is GDXJ. It goes by the name "Market Vectors Junior Mining Fund." And that name is a snow job.
Sunday, December 19, 2010
Water, Energy Stage Daring Economic High-Wire Act / Commodities / Renewable Energy
Good news: The United States has doubled its renewable-energy production (nominally and percentagewise) during the past 13 years, according to the United States Energy Information Association (EIA).
Or is it?
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Saturday, December 18, 2010
3 Things to Watch As Silver Season Ends / Commodities / Gold and Silver 2010
Silver season is coming quickly to a close after one of the best five month rallies in silver history. From mid-August to early December, silver managed to rise more than 66% from top to bottom, a sign of silver's strength against what is normally a positive, but not nearly as pronounced, rise in silver prices. In moving forward, there are three main events on which silver investors need to focus.
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Saturday, December 18, 2010
Where Will the Next Cardium Oil Opportunity Be? / Commodities / Crude Oil
The Experts Weigh In: The 2011 Outlook for the Cardium Oil FormationPART II – what did we learn in 2010 and where is the next Cardium?
Improving economics, higher oil prices and exploration that pushes the boundaries are three factors that could create even higher valuations in the Cardium play, industry executives say.
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Saturday, December 18, 2010
Rare Earth Metals Supply Hysteria / Commodities / Metals & Mining
China's domination of the rare earth industry has led to very real fears about the future supply of these strategic metals that are used in all things technological—from electric car batteries, laptops and cell phones all the way to smart bombs. As one of the foremost experts in rare earth elements (REEs), Bill understands the implications of future supply shortfalls. In this exclusive interview with The Gold Report, the head of Vancouver-based Medallion Resources Ltd., explains the supply bottleneck and how his company is working to solve it.
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