|Day's range||1,414.60 - 1,426.30|
Investing.com - Gold prices fell on Tuesday in Asia as traders await decisions from multiple central banks in the next two weeks.
That gold has an undying allure may not be a secret, but the extent of its use in everything from food to space travel may surprise you
Gold price’s reversal this year has created opportunities in gold stocks. The SPDR Gold Shares ETF (GLD) had gained 11% year-to-date as of Friday.
(Bloomberg) -- Billionaire hedge-fund manager Ray Dalio sent ripples through the gold market this week when he advised buying the metal, but he’s part of a bigger wave.In the past month, banks including Goldman Sachs Group Inc., Citigroup Inc. and Morgan Stanley have raised their forecasts for bullion or touted its prospects, while holdings in exchange-traded funds linked to gold rose to a six-year high. Richard Hayes, chief executive officer of Australia’s Perth Mint, said buying by central banks is adding to the enthusiasm.Bullion is getting more attention from institutional investors as the prospect of slowing economies, lower interest rates and rising global tensions drives demand for the metal as a store of value. Gold, which benefits from low rates because it doesn’t pay interest, has since late May generated the best returns in the Bloomberg Commodity Index.“Safe-haven flows into the asset class in light of geopolitical risks and unresolved trade tensions continue to support the gold price,” Darwei Kung, head of commodities and portfolio manager at DWS Investment Management Americas Inc., said in an emailed report.According to Dalio, the founder of Bridgewater Associates, stimulus from central banks that’s helped bolster asset prices is nearing its limit and having diminishing effects on economies. Such stimulus will lead to more negative real and nominal returns, spurring investors to seek alternative forms of money such as gold or other stores of wealth, Dalio said this week in a LinkedIn post.‘Paradigm Shift’He sees a coming “paradigm shift” in the next few years as an enormous amount of debt and non-debt liabilities such as pension and health care comes due and can’t be funded with assets. That will lead to “some combination of large deficits that are monetized, currency depreciations, and large tax increases.”Assets “that will most likely do best will be those that do well when the value of money is being depreciated and domestic and international conflicts are significant, such as gold,” Dalio said.Investor demand has kicked into high gear since the Federal Reserve signaled in June that it may begin cutting U.S. interest rates as early as this month to shore up growth. That could set the metal up for a fall if the Fed doesn’t follow through as investors expect. The market is currently pricing in a 50-basis-point cut, “and any change in sentiment could see a sharp reversal to the downside,” according to DWS’s Kung.Wealth EffectStill, Goldman analysts including Mikhail Sprogis and Sabine Schels said in a June 25 report that bullion doesn’t need fear to prosper. While a gradual brightening of prospects for the world economy in the second half of 2019 and receding worries of recession could lead to lower “fear”-driven demand for bullion, that will probably be offset by a positive “wealth” effect, the bank said.Gold futures for August delivery on the Comex in New York rose as much as 1.8% to $1,454.40 an ounce on Friday, the highest for a most-active contract in six years. Prices are heading for a fourth weekly gain in five.If the rally does persist, retail investors who have largely been on the sidelines may soon join in, according to Hayes of the Perth Mint.“It takes a little while for a rally like this to really feed into mainstream society,” Hayes said in an interview by phone. “If it is sustainable it will undoubtedly spark additional interest not only from institutions but from the average investor in the street.”(Updates with gold price in third-from-last paragraph.)To contact the reporters on this story: Joe Richter in New York at firstname.lastname@example.org;Justina Vasquez in New York at email@example.comTo contact the editors responsible for this story: Luzi Ann Javier at firstname.lastname@example.org, Joe RichterFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- Billionaire investor Ray Dalio made headlines this week by asserting in a 6,000-word essay that gold should become a key part of every portfolio. Investors in Canadian gold stocks are way ahead of him.Gold producers have been on a tear in Canada, keeping the benchmark S&P/TSX Composite Index near its all-time high. Companies, including Eldorado Gold Corp., Alacer Gold Corp. and Semafo Inc. make up half the index’s biggest gainers this year, while nine of the top 10 in the past month have been gold or silver producers. The gold firms have taken the reins from technology and pot stocks, which were the drivers earlier this year.The S&P/TSX had been rising out of an ugly trough reached in December, in part thanks to Shopify Inc.’s gravity-defying rally and several high-flying pot stocks. The gauge rose 12% from beginning of the year though the end of May, outperforming the S&P 500.During those five months, technology and pot/healthcare were the best-performing sectors, rising about 39% and 31%, respectively. Meanwhile, the materials sector had been languishing at the bottom of the 11-group list.That all began to change in April. The broader market started to turn lower as trade-war jitters percolated and economic-growth concerns rose. Those issues, plus strengthening dovish signals from the U.S. Federal Reserve, nudged investors to gold as a haven.By June, the precious metal was on a tear, trading near six-year highs, benefiting miners and pushing up the S&P/TSX. Helped by the rally in gold and silver mining stocks, materials became the best-performing sector from June 1 through Thursday, rising 17%, while cannabis/healthcare became the worst, falling 6.6%.To be sure, technology and pot are still the Canadian index’s top two sectors this year. And materials stocks, which were the worst performers year-to-date until the end of May, are now among the top five.There may be more room for gold to rise. Industry analysts are jumping on the bandwagon, according to Bloomberg data, which shows that, on average, industry experts are predicting that gold and silver prices will remain elevated heading into at least next year.To contact the reporter on this story: Aoyon Ashraf in Toronto at email@example.comTo contact the editors responsible for this story: Brad Olesen at firstname.lastname@example.org, Steven Frank, David ScanlanFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Investing.com - Gold prices gained on Friday amid intensifying tension in the Middle East and rising expectations of aggressive Fed easing.
(Bloomberg) -- Eurasian Resources Group Sarl, the mining firm backed by the Kazakhstan government, is exploring options for assets in the Democratic Republic of Congo including a potential sale, according to people with knowledge of the matter.China Nonferrous Metal Mining (Group) Co. is among companies interested in the assets, the people said, asking not to be identified as the information is private. Deliberations are at an early stage, and ERG could decide against a sale, they said.Bidders could value the company’s assets at $3 billion to $4 billion while the seller may be seeking $7 billion to $8 billion, the people said. Valuing the assets is difficult because of political risks in the region and volatile metal prices, among other reasons, they said.A representative for ERG declined to comment. China Nonferrous couldn’t be reached for comment.ERG, which mines copper and cobalt in DRC, has been reviewing its investments and has already sold assets valued at about $1 billion, according to its website. The company is a major producer of cobalt, a material used in rechargeable batteries powering iPhones and Tesla cars, though it’s had to grapple with a supply glut and declining prices. Congo produced 72% of the world’s supply of cobalt last year.Read more about cobalt mining in the DRC here.The firm is also developing large-scale investment projects in Central Asia and Africa with the Chinese government as part of the New Silk Road initiative, according to its website.China Nonferrous operates in more than 80 countries and regions globally. It produces so-called nonferrous metals, which contain little or no iron, such as copper, lead and gold. The company also invests in mining projects in Zambia, Mongolia, Myanmar, Thailand and DRC, according to its website.\--With assistance from William Clowes and Elena Mazneva.To contact the reporters on this story: Carol Zhong in Hong Kong at email@example.com;Vinicy Chan in Hong Kong at firstname.lastname@example.org;Dinesh Nair in London at email@example.comTo contact the editors responsible for this story: Fion Li at firstname.lastname@example.org, Amy ThomsonFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Investing.com - Gold prices hit intraday lows on Thursday after a bout of better-than-expected U.S. data took some of the wind out of hopes for aggressive policy easing from the Federal Reserve.
Investing.com - Oil prices rose on Thursday in Asia after data showing U.S. crude inventories fell more than expected last week.
U.S. lawmakers repeatedly pressed Facebook's top blockchain exec to halt development of the Libra cryptocurrency in Tuesday's hearing.
Today we are going to look at Lena Gold-Mining Public Joint Stock Company Lenzoloto (MCX:LNZL) to see whether it might...
Investing.com - Gold prices turned lower on Tuesday after a strong retail sales reading sparked buying interest in the U.S. dollar and pushed Treasury yields higher, although stagnating industrial production briefly undid some of the move, while analysts recommended caution given high levels of long positions.
Investing.com - Oil prices steadied on Tuesday in Asia as more production facilities resumed output in the U.S. Gulf after Tropical Storm Barry made landfall in Louisiana on Saturday.