SWOT Analysis: Turkish Demand for Gold Near a Four-Year High

Strengths
The best performing precious metal for the week was palladium, 0.41 percent. CenterraGold is set to buy Aurico Metals for $1.80 per cash share for a 38-percent purchase price premium on the Toronto Stock Exchange. Centerra currently holds more than $350 million in cash and has now secured a $125 million acquisition facility, according to Bloomberg. Gold prices rose after Saudi Arabia said a recent attempted missile strike at Riyadh’s airport could be an act of war by Iran. Additionally, Turkish investors are continuing to buy gold with demand expected to reach the highest since 2013. According to Google Trends, global searches for ‘buy bitcoin’ have overtaken ‘buy gold’ demonstrating a surge in popularity of the cryptocurrency. However, the BullionVault Gold Investor Index edged slightly higher to 54.6, demonstrating the number of buyers is higher than sellers. Weaknesses
The worst performing precious metal for the week was platinum, down 0.82 percent. Due to platinum’s primary use in internal combustion engines, the metal could be among the biggest losers from electrical vehicle growth, reports Mining Review. The World Gold Council said it’s a tough quarter for gold as prices weakened in September and October. Global gold demand fell 9 percent in the third quarter as investor buying slowed and regulations in India tightened, reports Eddie van der Walt.

This post was published at GoldSeek on 13 November 2017.

SWOT Analysis: What a Higher Budget Deficit Means For Gold

Strengths
The best performing precious metal for the week was palladium, down slightly by 0.42 percent. Germany’s BASF noted that the automotive industry appears to be responding to the price surge in palladium this year and are slowing down purchases. According to Bloomberg, gold traders and analysts are bearish for the first time in four weeks as the dollar strengthens. The passing of the U. S. budget by the Senate lifted hopes by boosting risk sentiment and pushing yields higher. Joni Teves of UBS says a large fiscal package is a key downside risk for gold as it would result in a higher policy rate path. Even though there has been a pullback in gold prices, large buy orders came into the market two times this week and spiked prices higher. On Monday, 18,1792 gold contracts were traded in a span of five minutes and on Wednesday another 21,129 contracts were traded. Tai Wong, head of base and precious metals trading at BMO Capital Markets, bets the dollar is going to retrace and it will be good for gold. Paul Wright, former CEO of Eldorado Gold Corp., will resign from his board position after 20 years at the company and just months after resigning as CEO. Although stock value tripled during his tenure, Wright’s late career was marked by a high-profile dispute with the Greek government after investing over $2 billion in the country. Following the results of the European Central Bank meeting, gold is seeing some selling pressure and trade surging after the dollar index rallied.

This post was published at GoldSeek on 30 October 2017.

SWOT Analysis: How Will Gold Move Into 2018?

Strengths
The best performing precious metal for the week was palladium, off 1.44 percent for the week. Citigroup favors palladium in the short term, in response to pollution control, but says substitution risks prevent the bank from taking a more bullish view long term as the price of palladium is now higher than the price of platinum. After the Indian government eased rules on gold purchases, the country’s demand for gold jewelry and branded coins appears to be better than the last quarter, according to P. R. Somasundaram, MD for India at the World Gold Council. The ensuing wedding season is the key for quarterly demand performance, Bloomberg reports, and with a good monsoon season, stable gold prices should encourage consumers. In the month of September, Swiss gold exports doubled month-over-month to 148.4 metric tons, reports Bloomberg. In August, exports were only 72 tons, according to the Swiss Federal Customs Administration. Specifically, Swiss exports to China rose 21 percent and to Hong Kong rose 92 percent. Weaknesses
The worst performing precious metal for the week was platinum, off 2.41 percent as palladium seems to be the more crowded trade. September makes 11 months straight of China officially reporting a zero increase in the level of its gold reserves, writes Lawrie Williams. The only time in recent years that the Asian nation has published any month-by-month gold reserve accumulations was in the 16 months ahead of the yuan being accepted as an integral part of the International Monetary Fund’s (IMF) Special Drawing Rights basket of currencies, Williams continues. ‘We don’t think it coincidence that such month-by-month reporting effectively ceased once the yuan became part of the SDR, thus paving its way for acceptance as a reserve currency,’ the article reads.

This post was published at GoldSeek on 23 October 2017.

Palladium Price Hits 16-Year High

Palladium probably isn’t something you think about when you consider investing in precious metals.
Maybe you should.
Palladium broke through the $1,000 mark on Monday. The price of the metal has spiked nearly 50% in 2017 and is at its highest level in 16 years.
A UBS strategist told CNN she’s convinced palladium’s strength is driven by fundamentals.
Like silver, palladium has both industrial and investment value. It is used in cars, electronics, dentistry, and jewelry. Between 1988 and 2002, the Canadian mint produced a palladium Maple Leaf coin.
Commerzbank analysts talked up palladium in a note to its clients.
Palladium is continuing to soar. Not only does demand from the automotive industry appear robust – speculative financial investors are also remaining loyal to palladium.’

This post was published at Schiffgold on OCTOBER 17, 2017.

Palladium and Rhodium on Fire, Is Platinum Next?

Platinum was once the most precious of metals. For decades, it traded at a premium to gold. The other platinum group metals – palladium and rhodium – barely registered on investors’ radar screens.
Platinum lost its crown to gold in 2015. It was overtaken by the other PGM metals in recent weeks.
Given that platinum, palladium, and rhodium demand is largely driven by automobile manufacturing and the production of catalytic converters, one of these things is likely true; platinum is currently undervalued, or the other two have gotten ahead of themselves.
Which one is the correct assessment will depend on whether the current optimism for economic growth in both developed economies and emerging markets has been well placed. Either way, investors inclined to speculate on the PGM metals have some interesting market action upon which to trade.
Platinum does look remarkably underappreciated. It is hard to imagine it trading at a significant discount for too long.

This post was published at GoldSeek on Tuesday, 17 October 2017.

SWOT Analysis: Gold In Focus After Climbing Above Key Threshold Level

Strengths
The best performing precious metal for the week was palladium, up 7.28 percent as money managers raised their net-long positions on continued expectations that the shift from diesel to gasoline powered cars will continue. Gold traders and analysts surveyed by Bloomberg are bullish for the first time in five weeks, reports Bloomberg. Following the release of the Fed minutes which showed rising concern about low inflation, the yellow metal climbed to a two-week high. A fresh flare-up in tensions with North Korea pushed gold higher this week, writes Bloomberg, along with a U. S.-Turkey diplomatic spat regarding visitor visas was supportive. The Indian government withdrew an order that brought the gold industry under anti money-laundering legislation, reports Bloomberg. Jewelers were included in the Prevention of Money-Laundering Act in August that increased compliance requirements. In response to the rule reversal, shares of jewelers climbed in the country. This move comes just as gold buying improves before the Hindu festival of Diwali, the peak season for demand, the article continues. Weaknesses
The worst performing precious metal for the week surprisingly was gold, up more than 2 percent, despite grabbing most of the precious metals headlines. According to the People’s Bank of China website, gold reserves in China came in at 59.24m fine troy ounces in September, unchanged again from the previous month, which unfortunately is beginning to become a trend. Chinese markets had been closed the prior week to mark National Day.

This post was published at GoldSeek on Monday, 16 October 2017.

3 New Intraday Lows at the London P.M. Gold Fix

07 October 2017 — Saturday
YESTERDAY in GOLD, SILVER, PLATINUM and PALLADIUM
The gold price traded mostly sideways in Far East trading on their Friday, but developed a slight positive bias around the time that London opened. That lasted until shortly before the noon silver fix over there — and the price began to slide a bit. There was only a tiny price jiggle at the release of the jobs report at 8:30 a.m. in New York, but the price was pressured lower until the low tick of the day…and new intraday low for this move down…was set at the afternoon gold fix in London. It rallied sharply from there, before getting capped at the London close — and from that point chopped quietly, but unevenly higher for the rest of the Friday session.
The CME Group reported the low and high ticks at $1,262.80 and $1,279.20 in the December contract.
Gold finished the Friday session on its high tick of the day at $1,276.10 spot — and up $8.30 from Thursday’s close. Not surprisingly, net volume was over the moon at something around 352,000 contracts.

This post was published at GoldSeek on Sunday, 8 October 2017.