Blog posts tagged with 'copper'

While yesterday was a very discouraging day for gold and silver bulls, today does not look to be an improvement.

In fact, with the world largely accepting the likelihood of Chinese deflation and the Chinese economy capable of exporting deflation, (overnight Chinese producer prices declined by 4.4% following a 5.4% decline in the previous month) should leave physical commodities out of favor.

Not surprisingly gold ETF holdings fell again yesterday for the 12th straight session while silver ETF holdings dropped for a 5th straight session...[MORE]

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Italy surprised the markets with a 40% windfall profits tax on banks, while Moody's downgraded several small to midsized US banks.

Other minimally bearish developments include Turkey placing a 20% levy on some forms of gold imports and news that gold ETF holdings yesterday fell for the 11th straight day!

Much weaker than expected Chinese import and export data undermines physical and investment demand hope for gold and silver which will also be facing slightly negative spillover from strength in the US dollar...[MORE]

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The initial trade in #gold today is lower in a knee-jerk reaction to slightly higher US #dollar action and from a slight blip-up in US interest rates.

The Peoples Bank of China overnight posted another incremental increase in gold reserves in July of roughly 2 million ounces in a continuation of their gradual and difficult-to-monitor buildup of gold reserves.

Unfortunately for the bull camp gold ETF holdings saw a 10th straight daily outflow last Friday bringing net sales from holdings this year up to 2.86 million ounces...[MORE]

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Even though the overnight declines in gold and silver are modest, the rally in the dollar index is also small leaving currency-related selling in gold and silver somewhat limited early on.

While the decline in gold yesterday was not severe, the market did make a lower low and was pressured by a significant jump in US interest rates.

Fortunately for the bull camp, offsetting the jump in rates was off-balance US dollar action...[MORE]

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With the dollar posting a higher high overnight the lower low in the gold and silver markets was to be expected.

Yesterday gold ETF holdings declined for the eighth straight session with a rather substantial reduction of 176,980 ounces bringing the year-to-date change in holdings to -2.8%. Silver ETF holdings saw a third straight day of outflows with year-to-date holdings now down 2.6%.

In retrospect, the failure to see gold and silver benefit from the Fitch downgrade of US credit highlights a prevailing bearish sentiment in the precious metal markets...[MORE]

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While the dollar did not post a higher high for the move in the overnight action it remains a headwind for the gold bull camp.

Given the lack of a recovery in gold and silver following the downgrade of US credit by the rating agency Fitch the market is not sensitive to flight to quality issues.

In a second negative story, the World Gold Council indicated that Indian gold demand in the 2nd quarter declined by 7% from last year and suggested the slumping demand was the result of persistent record-high Rupee gold prices which reduced affordability and turned off consumer interest...[MORE]

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Despite favorable internal demand news, the #gold market starts off under pressure from strength in the #dollar and signs of higher global interest rates.

While comments from a Chinese state planner indicating they will push for an expansion of household consumption sounded like the 6th stimulus announcement, that news combined with a slight improvement in Japanese manufacturing PMI readings for July should have been more supportive of gold, #silver, and many physical commodities.

Unfortunately for the bull camp gold ETF holdings last week fell by 329,000 ounces with a decline on Friday of 50,383 ounces putting year-to-date holdings down 2.3%...[MORE]

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With a slight corrective setback in the #dollar, this morning's recovery bounce in gold and silver is not surprising.

We suspect many traders are holding on the sidelines ahead of this afternoon's US Fed decision and statement. With market expectations pegging today's US rate hike as nearly a certainty, the focus of the markets will be on the tone and direction of future policy dialogue in the Fed's statement.

However, investors continued to exit gold ETF holdings with an outflow yesterday of 127,436 ounces while silver ETF holdings advanced minimally by 224,436 ounces, leaving both gold and silver holdings down 2.2% year-to-date...[MORE]

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