Archive for the ‘Metals’ Category

Gold Outlook for 2010: Gold Resuming its Historical Monetary Role – as the Anti-Currency

Monday, January 11th, 2010

This one is directed to all you “Gold bears” out there, you might want to read this outlook before taking on your next short position. FYI, just because the outlook for Gold is promising doesn’t mean you can’t take advantage of the counter trend sell-offs. *wink, wink*

By Nick Barisheff

Keynote Speech Presented by Nick Barisheff at the Empire Club’s 16th Annual Investment Outlook Luncheon
Thursday January 7, 2010

Good afternoon. As always, it is a privilege to speak at the Empire Club.

Each year for the past three years, I have returned to share perceptions about the precious metals industry and specifically about gold. Generally, this forces me to step back and assess the previous year’s events and then to speculate about what they may indicate for the coming year. Choosing the seminal events this year has been more difficult than usual. Lately the pace of gold-related news has accelerated exponentially with gold’s rising price. While 2009 was an exciting year for gold, setting a new average high of $1,088, 2010 promises to be even more exciting.

In 2009 gold resumed its historical monetary role – as the anti-currency. Therefore, the influences and events that affect its price are not simple commodity supply/demand fundamentals, but the more complex global monetary issues.

To summarize some of the important key events, I thought it would help to separate them into three categories. Click here to continue…

Gold Prices Hit a One-Month High

Monday, January 11th, 2010

Gold futures hit their highest level in a month Monday in reaction to a weaker U.S. dollar and general commodity strength, following a report showing strong Chinese trade data.

Around 8:50 a.m. in New York, lightly traded gold for January delivery was up $21.30 at $1,159.50 an ounce on the Comex division of the New York Mercantile Exchange.

China’s Steel Appetite Reshapes Industry

Sunday, January 10th, 2010

BY ROBERT GUY MATTHEWS

China’s surging demand for steel this year is expected to dominate the landscape of the steel industry as never before.

Already the world’s largest producer by far, the country is expected to rev up production by nearly 10%. But the higher output likely won’t exceed demand, pushing prices higher world-wide for steel, its raw materials and even coal.

Steelmakers, which idled dozens of mills and cut production as the global economy slowed, are now ramping up. Rio Tinto, which sells the most iron ore to China, is restarting production. Iron ore is a key ingredient in making steel.

Copper Hitting Goldman’s Target One Year Early Means 20% Drop

Sunday, January 10th, 2010

Copper’s fastest rally on record may fall victim to inventories that have soared to a six-year high, slower sales to China and the winding down of government stimulus programs.

Global supplies have ballooned 85 percent since June into the largest stockpile since 2004. Shipments to China, the biggest user, have fallen in three of the past six months. Mining companies including BHP Billiton Ltd. and Rio Tinto Group Plc that trimmed expansion plans during the recession are increasing production to take advantage of prices that gained 140 percent last year and 1.2 percent since.

The rally surprised even copper bulls as governments pledged as much as $12 trillion to combat the worst recession in seven decades and China imported more than ever in the first half. Copper for delivery in three months closed at $7,461 a ton on the London Metal Exchange on Jan. 8, after Goldman Sachs Group Inc. predicted in September it wouldn’t rise that much until late 2010.

Gold Seeker Weekly Wrap-Up: Gold and Silver Gain Nearly 4% and 10% on the Week

Saturday, January 9th, 2010
Gold fell over 1% to as low as $1119.50 in London and then shot higher after the US jobs report was released to as high as $1139.12 by about 9AM EST before it fell back off to see slight losses by late morning, but it ultimately climbed back higher into the close and ended near its earlier high with a gain of 0.44%. Silver fell over 1.5% to as low as $18.019 in Asia before it jumped to as high as $18.45 at the New York open and then also fell back near unchanged by late morning, but it too rallied back higher in the last couple of hours of trade and ended with a gain of 0.6%.

Next week’s economic highlights include the Trade Balance on Tuesday, the fed’s Beige Book and the Treasury Budget on Wednesday, Initial Jobless Claims, Retail Sales, Import and Export Prices, and Business Inventories on Thursday, and CPI, Empire Manufacturing, Capacity Utilization, Industrial Production, and Michigan Sentiment on Friday.

Gold Turns Back Up

Friday, January 8th, 2010

Gold futures turned back up as U.S. jobs data pressured the dollar. January gold rose $5.10 to $1,138.20 Friday and for the week rose 3.9%, snapping a five-week losing streak.

Copper Settles Up for the Week

Friday, January 8th, 2010

After a brief move into positive territory following U.S. jobs data, copper futures fell back to settle slightly lower Friday but still ended up on the week.

Benchmark March copper fell 2.65 cents to settle at $3.4005 a pound on the Comex division of the New York Mercantile Exchange. For the week, the contract rose 1.6%, with most of the gains coming on Monday and Wednesday.

Weak U.S. Payrolls Push Up Gold

Friday, January 8th, 2010

The disappointing data pressured the dollar, which in turn supported gold.

Gold Pressured by Dollar

Thursday, January 7th, 2010
A stronger dollar, combined with book squaring before Friday’s monthly U.S. jobs report, snapped gold’s four-session winning streak.

Gold’s Tight Trading Range

Wednesday, January 6th, 2010

NEW YORK (TheStreet) — Nicholas Brooks, head of research and investment strategy for ETF Securities, says the risk trade is on again as investors buy commodities and equities, but for the short term Brooks says gold prices will stay confined to a tight trading range.