While the Fed’s taper talk has been tapered and then un-tapered, the market may now be tapering the Fed rather than vice versa. Let’s assess Act 2 of the taper talk and the implications for the markets, including the dollar and gold.
Wholesale gold edged back from last week’s two-month closing high on Monday morning, recording its best London Gold Fix since 18th June above $1375 per ounce. World stock markets slipped, with Indonesia dropping 5.5%, as major government bond prices also fell, driving interest rates higher.
The price of wholesale gold fell back to $1320 per ounce Wednesday lunchtime in London as new data showed the US economy expanding faster-than-expected. Second quarter GDP rose 1.7% in real terms from a year earlier, the Bureau of Economic Analysis said.
In this article I will argue that the recent fall in the gold price has generated substantial demand for bullion that will likely bring forward a financial and systemic disaster for both central and bullion banks. To understand why, we must examine their role and motivations in precious metals markets and assess current ownership of physical gold.
IAMGOLD and New Gold are both mid-tier gold producers with a portfolio of operating mines that generate strong cash flow. However, while New Gold sells for a P/E of 18.7, IAMGOLD sells for a P/E of just 6. The question is, is IAMGOLD undervalued or is it cheap for a reason?
This regular column reviews the condition of several different markets including: stocks, commodities, currencies and precious metals. This week focuses on gold, the Dow Jones Industrial Average, crude oil, copper, and the British pound.
Marc Faber of the Gloom Boom Doom Report was interviewed by Bloomberg on Friday, and of course topic number one was the brutal takedown of gold. Not all that surprisingly, he likes the resulting buying opportunity and expects “a major low in gold within the next two weeks.”
The traditional methods for analyzing the value of a company are not particularly helpful when they are applied to precious metals miners. This article looks at the way gold and silver miners classify their mineral resources and how this information can be used to help evaluate mining companies that are in production.
U.S. dollar gold prices fell back below $1600 per ounce Monday morning in London, falling back towards where they started last week, as stocks and commodities gained after news that Cyprus has agreed a bailout deal.
U.S. dollar gold bullion prices hovered near $1580 an ounce Friday morning, broadly in line with where it started the week, as stocks edged higher and the US Dollar weakened ahead of the publication of the latest US nonfarm payrolls and unemployment rate data.
The price consolidation that has been going on for 18 months is making certain investors nervous, which is understandable, but nothing has changed for the market fundamentals. On the contrary, more and more elements plead in favor of a new phase of growth for gold and silver prices.
Gold jumped as high as $1619 per ounce Tuesday, 2.3% up on where they started the week, immediately after US Federal Reserve chairman Ben Bernanke testified to the Senate Banking, Housing and Urban Affairs Committee in the first of two-days of testimony before Congress.