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Wednesday, April 24, 2013
Monday, April 22, 2013
Gold Plunges Most in 33 Years in Record-High Trading - Bloomberg
Gold plunged the most in 33 years amid record-high trading as an unexpected slowdown in China’s economic expansion sparked a commodity selloff from investors concerned that more cash will be needed to cover positions.
Gold for immediate delivery dropped as much as 3.9 percent to $1,425.75 an ounce and was at $1,455.78 at 2:35 p.m. in Singapore. Photographer: Simon Dawson/Bloomberg
April 15 (Bloomberg) -- David Wilson of Citigroup Global Markets discusses the selloff in Gold and looks at what's driving the market lower. He speaks on Bloomberg Television's "The Pulse."
April 12 (Bloomberg) -- Marc Faber, publisher of the Gloom, Boom & Doom report, talks about trading in gold markets. Gold tumbled to the lowest price since 2011, slumping into a bear market. Faber speaks with Trish Regan and Adam Johnson on Bloomberg Television's "Street Smart." Bloomberg's Norman Pearlstine also speaks. (Source: Bloomberg)
April 15 (Bloomberg) -- Tom Fitzpatrick, chief technical analyst at Citigroup, talks about the outlook for gold. He talks with Tom Keene and Sara Eisen on Bloomberg Television's "Surveillance." Nathan Sheets, global head of international economics at Citigroup Inc., also speaks. (Source: Bloomberg)
April 15 (Bloomberg) -- Bloomberg's Alix Steel examines the recent drop in the gold market and looks at past bear markets for a clue as to how long and how deep gold's slide may be and what may be fueling the selloff. She speaks on Bloomberg Television's In The Loop."
A gold bar bearing a character reading "gold" is displayed at Gold Expo held in J. Front Retailing Co.'s Matsuzakaya department store in Tokyo. Photographer: Yuriko Nakao/Bloomberg
China’s economy in the first quarter grew less than forecast by economists, government data showed today. The minimum amount of cash for borrowing from brokers to trade gold futures on the Comex may increase after prices plummeted 13 percent, or more than $200 an ounce, in two sessions. Silver, platinum and palladium slumped, and a gauge of 24 commodities fell to the lowest since July.
On April 12, gold slumped into a bear market on concern that Cyprus may sell bullion holdings to cover a bailout, and theFederal Reserve signaled that that U.S. monetary stimulus may be scaled back this year. Holdings in the SPDR Gold Trust (GLD), the biggest exchange-traded product backed by the metal, have tumbled to the lowest in almost three years, and hedge funds have cut bets on higher prices by 72 percent since mid-October.
“Gold took a beating today because of margin calls” expected on the Comex, Frank McGhee, the head dealer at Integrated Brokerage Services LLC in Chicago, said in a telephone interview. “The Chinese number was the final nail on the head with people exiting from all commodities, including gold.”
Gold futures for June delivery slumped 9.3 percent to close at $1,361.10 at 1:51 p.m. on the Comex in New York, the biggest drop for a most-active contract since March 17, 1980. After the settlement, the price touched $1,348.50, the lowest since Feb. 7, 2011. Estimated trading on all contracts was 684,502 contracts at 4:10 p.m., topping the previous record of 486,315 contracts on Nov 28.
Silver Slump
This year, silver has tumbled 23 percent, and gold has slumped 19 percent, the most among the 24 raw materials in the Standard & Poor’s GSCI Spot Index.
Following a 12-year rally, the turn in the gold cycle is quickening and investors should sell, Goldman Sachs Group Inc. said April 10. U.S. equities climbed to a record last week, and some Fed policy makers favor pulling back this year on $85 billion in monthly debt purchases.
Gold slid 4.1 percent on April 12, taking losses to more than 20 percent since the record close in August 2011 and meeting the common definition of a bear market.
China GDP
China’s gross domestic product rose 7.7 percent in the first quarter from a year earlier, the National Bureau of Statistics said today. That compares with the 8 percent median forecast in a Bloomberg News survey of 41 analysts and 7.9 percent in the fourth quarter. India is the biggest gold buyer.
“We could see a severe correction in gold, even spilling over into silver and the platinum metals group,” Peter Sorrentino, who helps manage about $14.7 billion of assets at Huntington Asset Advisors in Cincinnati, said in an e-mail. “I reduced our holding some weeks back, and regret now not selling more.”
Prices may drop to $1,310 by June, Sterling Smith, a Chicago-based commodity futures specialist at Citigroup Global Markets Inc., said today in a telephone interview.
Gold Technical Analysis - 19 April 2013
After intermittent session the pair of gold / U.S. dollar closed today at a higher price, where low prices continued to attract Asian buyers.
In addition to the increased demand for physical gold, the coverage of short positions ahead of the Group of Twenty meeting helped the upward movement in the defense of the support level at $ 1333 USD/ ounce. yesterday indicate that the downward movement lose its capacity, at least until now. Although I do not expect another big drop in the near future, but I think that we will eventually get to the level of $ 1266 USD/Ounce of gold, sooner or later.
Gold shortage in Dubai
Dubai: Dubai has run out of gold. Well not exactly, but salespersons at jewellery outlets say there is no supply of gold coins and biscuits.
And those hoping to cash in on tumbling gold rates are likely to be disappointed if they head to retail outlets as the men manning the counters say the the city has run out of coins and biscuits. “There seems to be no gold coin or bar available in Dubai,” a salesperson in Karama told this reporter.
“It’s unthinkable for gold to come down to this level,” said Pradeep, an Indian logistics executive who joined the throng of buyers at Karama Shopping Centre, where a cluster of gold shops were abuzz with customers.
On Friday global gold prices closed down five per cent, precipitated by fears of a gold selloff by European central banks to pay for bailouts by ailing countries.
Tuesday, April 3, 2012
Demand for Gold Trading in Dubai
The TrustSecurities DMCC, a clearing broker member of Dubai Gold and Commodities
Exchange (DGCX) has announced that the demand for gold trading in Dubai, United
Arab Emirates – known as the biggest Arabian economy, next only to Saudi Arabia
– is rising to a good start this 2012.
The DubaiChamber Study explores the challenges and prospects for the UAE gold market and
the different potentials for the country’s gold traders and investors to
benefit from these opportunities. This is while protecting themselves from the
risks involved in trading with commodity metals. It reported gold trades of
over US$41.3 billion which indicate a healthy trend for the whole 2011 and
early 2012. The study finds out that the Dubai Gold and Commodities Exchange
(DGCX) has been thriving as of May 2011 when gold contracts increased by 39%
year on year to achieve over 60,000.
There is huge increase in Gold investment in Dubai and there are lot of forex brokers in Dubai which are giving option to trade in Gold. In Dubai
UAE, gold plays an important part for use in jewelry, investment commodity as
well as in import and export trade. Gold is known to be less volatile the
currencies and other investment products. This is considered to be an
investment haven and a speedy way to liquidate assets. Overtime, Dubai has been
gaining reputation for the high quality of gold, structure of gold trading and
tax free operations that it offers, therefore making gold more attractive.
However, it has also been subject to price
cycles during the past few years. According to Dubai Chamber’s study, the price
movements in the gold market are very crucial for gold investors and traders
who need to make future plans for their businesses.
Opportunities for UAE Gold Market
Despite of
these, gold trading in Dubai, UAE continues to be promising. The investment
demand is not only the reason for the price rise of gold but due to higher
demand for using it for jewelry making. It is also important to consider that this
country continues to increase its wealth with the consistent growth of its
economies. And with that growth, residents of UAE are gaining more disposable
incomes to purchase luxury items.
The World
Gold Council (WGC) estimates that jewelry and investment demand from Asian
countries embodied about 40% of total global demand for gold in 2010 and also
estimate that the demand from India is anticipated to grow ultimately.
Why Trade With Gold?
Aside from being beautiful to look at, gold has also been a world standard for finances throughout centuries.
Merchants in the past exchange gold with one another to obtain necessities.
Today, gold is a primary material used for making jewelry and coins.
Dubai gold trading used to be
possible only for affluent people and those who have enough space to store
their gold bars. But now, with the advent of technology, the average people can
now also trade gold even without actually possessing the real metal. This is
all done with the help of the Internet. A lot of investment broker companies
today offer a special platform where traders can access the Gold market and
make profits from it.
While stocks and currencies market make up the major volume of investments today, gold trading has a number of
benefits which seem to attract more and more traders. Some of the reasons are
as follows:
A Guide to Buying Gold in Dubai
The Gulf’s
most vibrant city – its modern heart and soul – is Dubai. This emirate is situated
south of the Persian Gulf and owes its remarkable economy to the oil reserves
that were found there during 1960’s which then led to a surge of investors and
businessmen. Dubai, United Arab Emirates
has always been the center of gold trading since the 19th century.
Buying gold in Dubai became more widespread after the establishment of the well
renowned Gold Souq market. Today, this is considered as one of the major gold
markets around the world.
The spotgold price in Dubai is presented in the national currency of the UAE Dirham
(AED) twice each day according to the International rates of gold and currency
exchange rates of the Dubai Gold & Commodities exchange (DGCX). The rate of
gold in Dubai is also classified by the gold’s purity, namely 22 or 24 karat
composition in troy ounces. There are several sources around the Internet that
show the gold rates in Dubai per gram daily. The main and perhaps biggest
attraction of the Dubai gold market over other markets is the low prices it
offers. Compared to the other markets, such as the European gold market, the
price is a lot lower by up to 60%.Demand of gold trading in Dubai is increasing rapidly.
Getting Started With Gold Trading
Exchanging gold with other commodities is an age old
practice. Aside from being admired for its beauty and symbol of power, gold is
also used by investors as a way to protect themselves against inflation. Unlike
for currencies and other financial investments, the prices of gold remain
unaffected by external economic conditions.
And with the high demand for this commodity as a stable financial instrument,
more and more investors are considering gold as part of their portfolios.
If you are looking to diversify your portfolio into
gold investments through a Dubai broker, then there are a number of things you should consider first.
Just like any other investments, gold trading has its pros and cons so take
note of these before making a decision.
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