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Showing posts from August, 2015

Precious Metals Market News

GOLD - Gold supported in the short termFinancial markets continuously show strong volatility.After significant losses in the previous week, stock markets partly record significant gains last week. On Thursday, the oil price increased by more than 10%, a jump that was last seen in 2008. This development was mainly triggered by China’s interest rate cut as well as by surprisingly positive economic data from the US and Europe. Gold on the other hand was rather on the losing side: After the metal opened the week at 1,168 $/oz, the price dropped down to 1,117 $/oz on Wednesday and only slightly recovered to 1,134 $/oz on Friday. The economic situation in China and timing of the expected interest rate hike in the United States remain in the major focus of market participants. Contradictory signals came from the US Fed: while domestic economy shows a positive development, growth slows down in emerging countries. Thus, expectations increasingly shift towards an interest rate hike in December …

HSBC PGM & SILVER PRICES SLASHED

HSBC says "we are lowering our platinum group metals (PGM) and silver forecasts across the board in light of the China- inspired commodity-wide sell-off"HSBC sees platinum to average $1,126 per ounce in 2015 and $1,235 per ounce in 2016HSBC lowers silver price forecasts for 2015, 2016 to $15.60 per ounce and $16.90 per ounceHSBC lowers palladium price forecasts for 2015 and 2016 to $701 per ounce and $725 per ounce respectivelyHSBC says, "we have revised our average 2015 and 2016 forecasts to $1,160 per ounce and $1,205 per ounce, respectively" for gold price (on 27 July 2015)

Fed Rate Hike August 31

While China's stock markets seldom reflect the true nature of the economy, the plunge, coupled with Beijing's unexpected currency devaluation in mid-August, has dented confidence in the government and added to fears that the economy may be at risk of slowing more sharply than earlier expected. - Rueters

The Global Economy Is Looking Very 1990s - Justin Fox

He has very strong points in this post - 
Oil prices are falling, seemingly inexorably. Emerging market countries are having currency crises. A previously unstoppable East Asian economic power -- the world’s second-largest economy -- is slowing, and the country’s leaders at times seem to have lost the plot. Russia is an economic mess. Europe’s economy is being held back by German political decisions and doubts about the common currency. The U.S. economy is relatively strong, but is beset by a productivity paradox in which remarkable Silicon Valley innovations don’t seem to be having an impact on the economic data.Is this year starting to feel like it belongs in the 1990s, or what?http://www.bloombergview.com/articles/2015-08-21/the-global-economy-is-looking-very-1990s

Larry Summers On TPP

OPED from Larry Summers, WaPo- Interesting read, interesting take from Larry -  
First, the era of agreements that achieve freer trade in the classic sense is essentially over. The world’s remaining tariff and quota barriers are small and, where present, less reflections of the triumph of protectionist interests and more a result of deep cultural values such as the Japanese attachment to rice farming. What we call trade agreements are in fact agreements on the protection of investments and the achievement of regulatory harmonization and establishment of standards in areas such as intellectual property. 
https://www.washingtonpost.com/opinions/rescuing-the-free-trade-deals/2015/06/14/f10d82c2-1119-11e5-9726-49d6fa26a8c6_story.html

Precious Metals Update

GOLD - Rising US interest rates and weak signals from ChinaAfter the metal broke through the important mark of 1,100 $/oz, Gold is at a level that was last seen 5 years ago.While a rate hike by the US-Fed is still expected this year, the last FOMC meeting on Wednesday has not given any clear signal as to whether it will take place in September or December. The development of the US labor market is considered as the most important criterion to determine the effective date. While the current positive data could suggest an early adjustment, other factors such as the low price of oil, rapid losses on the stock markets in China and the euro crisis put pressure on the overall sentiment.GFMS’ latest quarterly Gold report, which was released last Tuesday, shows an overall restrained demand for Gold. The research firm estimates the global physical Gold demand in Q2 to be at its weakest since 2009. The main reason is a significant slowdown in demand from China, where the jewelry sector was down…