POSITIVES OUTWEIGH NEGATIVES

Gold entering period of rising prices as currencies depreciate

Despite some apparently poor fundamentals, gold could well be set for a further rise this year as investor sentiment remains strong.

Author: Lawrence Williams
Posted:  Thursday , 04 Mar 2010

SYDNEY - 

The price of gold has seen a fairly strong recovery over the past few days - in part because perhaps fears for the Euro have diminished, but almost certainly because also there is a degree of nervousness out there about virtually all currencies, with gold seen as providing some stability in a sea of quantitatively eased paper.  T here has also been some positive news too - there are signs that demand for gold bullion and gold jewellery is beginning to return in the traditional gold-buying areas - India in particular.  Demand is also seen as remaining high in China.  Gold mine production may be on the increase again, but only marginally so and not at a sufficiently level to change the overall supply/demand picture, and this following several years of continuing decline.

Gold entering period of rising prices as currencies depreciate

Post from: Gold News from Gold Editor

Gold entering period of rising prices as currencies depreciate

GOLD WEEKLY
Gold to reach $1,500 by year end, continue decoupling from dollar - Jeff Nichols
But, there are a few clouds on the short term horizon

Author: Geoff Candy
Posted:  Wednesday , 03 Mar 2010

GRONINGEN - 

The links between the dollar and gold are likely to continue to weaken in coming months as, globally, major currencies continue to decline.

Speaking on the Mineweb Gold Weekly Podcast, Jeff Nichols, MD, American Precious Metals Advisors, said, "The issue really is that all the major currencies are weak currencies - in a sense they're all sinking ships - the question is which ones are sinking faster - which ones are sinking slower?  I'm looking at the whole complex of currencies and thinking that the dollar, yen, pound and some of the other currencies are all weak - they're all going to be depreciating against gold - they're all going to be losing purchasing power and so it doesn't matter which one is losing it fastest in terms of gold - they're all going to be going down."

Gold to reach $1,500 by year end, continue decoupling from dollar - Jeff Nichols

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Gold to reach $1,500 by year end, continue decoupling from dollar – Jeff Nichols

GOLD MAJORS SCORECARD

For Big Gold, 2009 was a good year

With wiped faces, is it time for major gold companies to start focusing on shareholders?

Author: Barry Sergeant
Posted:  Monday , 01 Mar 2010

JOHANNESBURG - 

The majority of major gold producers finished 2009 on a high note, generating record levels of operating cash flows, in line with the rise in the dollar gold price which notched up its eighth year of successive increases, rising from around USD 250 an ounce in 2001 to above USD 1,200 an ounce in December 2009. The fourth quarter was especially strong, underpinned as well by copper prices that moved above USD 3.00/lb, compared to the multi year low of USD 1.28/lb seen in December 2008.

For Big Gold, 2009 was a good year

Post from: Gold News from Gold Editor

For Big Gold, 2009 was a good year

BMO CAPITAL MARKETS GLOBAL METALS & MINING CONFERENCE

BMO's Melek says supply constraints already evident in copper

BMO's global commodity analyst Bart Melek has a "quite robust view of the commodity market" and anticipates a "robust restocking cycle" in metals.

Author: Dorothy Kosich
Posted:  Tuesday , 02 Mar 2010

RENO, NV - 

BMO Capital Markets global commodity analyst Bart Melek said Monday the impact of the Chilean earthquake will be "not all that great" in terms of global copper supplies.

Instead, Melek suggested a production decline of Chilean copper could halve copper surplus and make markets tighter.

During a conference call with journalists at the BMO Capital Markets Global Metals & Mining Conference, Melek forecast supply constraints in copper, iron ore, platinum, silver and metallurgical coal.

Melek predicted a less than 50,000 tonnes of copper production decline for the year because of the massive 8.8 earthquake that hit central Chile. He noted that supply constraints already exist in copper, and forecast a copper deficit of 200,000 tonnes in 2011.

BMO's Melek says supply constraints already evident in copper

Post from: Gold News from Gold Editor

BMO’s Melek says supply constraints already evident in copper

Intraday & Swing Trading Gold and Stocks – How To Use Multiple Time Frames For Setups

A couple months ago I started providing more of my intraday charts in hopes to educate traders on current market conditions so they feel like they are “in the zone” for trading. It’s crucial to understand the intraday moves and volume levels if you want to be consistently profitable trader. It doesn’t matter whether you are day trading or swing trading, you must be following daily and intraday charts

Intraday & Swing Trading Gold and Stocks – How To Use Multiple Time Frames For Setups

Post from: Gold News from Gold Editor

Intraday & Swing Trading Gold and Stocks – How To Use Multiple Time Frames For Setups

FOOD FOR THOUGHT
Do we really want $5,000 gold?
What does $5,000 gold really mean? Perhaps social chaos and, if so, who really wants that?

Author: Lawrence Williams
Posted:  Friday , 26 Feb 2010

LONDON - 

General talk of gold as a potentially spectacular investment as opposed to an inflation hedge glosses over the true picture.  Over the ages, gold has kept up with inflation pretty well, and it will probably continue to do so in the future, but it may not make you wealthy, just protect whatever wealth you have.  True there have been periods when gold has outpaced the decline in currency values due to inflation, but that is usually when it is playing catch-up from a period of underperformance.

Now some ultra gold bulls out there are predicting $5,000 gold - or even higher.  While we think this unlikely in the foreseeable future, think what this means if it should come about.  It can only really happen if there is an equivalent decline in the US dollar - or the onset of hyper dollar inflation.  While some predict this also, the likelihood of a Zimbabwe situation with trillion US dollar notes buying less than a loaf of bread is hopefully rather more than we can see ahead.  If that should happen then $5,000 gold will be the least of what we should expect from the gold price.

Do we really want $5,000 gold?

Post from: Gold News from Gold Editor

Do we really want $5,000 gold?

BHP Fertilizer Interest May Hurt Prices, Moody’s Says (Update1)

February 25, 2010, 1:01 PM EST

 More From Businessweek

 By Firat Kayakiran

Feb. 25 (Bloomberg) -- BHP Billiton Ltd. and Vale SA’s interest in the mineral fertilizer industry may result in excess capacity and weigh on prices, Moody’s Investors Service said.

BHP and Vale, the world’s two biggest mining companies, last month agreed to spend $4.9 billion on separate fertilizer acquisitions in an effort to benefit from expectations for surging demand. Soil-nutrient sales may climb in coming years as global demand rebounds, Potash Corp. of Saskatchewan Inc., the largest fertilizer maker, said last month.

“New production capacity coming on stream over the next 10 years could lead to overcapacities and possible pressure on prices,” Moody’s said today in a report released on its own news wire.

Saskatchewan’s government expects an 88 percent increase in regional production capacity by 2020, according to the report. Two new BHP projects will account for much of the gain, according to Moody’s.

Vale agreed in January to buy a Bunge Ltd. unit that owns phosphate rock mines and assets in Brazil as well as Bunge’s 42.3 percent stake in a local fertilizer maker. BHP agreed to buy Canada’s Athabasca Potash Inc., acquiring the Burr project, adjacent to its Jansen project.

Bid Targets?

Post from: Gold News from Gold Editor

BHP Fertilizer Interest May Hurt Prices, Moody’s Says (Update1)

A LARGE SWING AWAY FROM THE EURO

Gold: A picture tells a thousand words

The net long dollar position on Inter continental exchange is 150 times the six-year average; CME Euro is heavily oversold

Author: Rhona O'Connell
Posted:  Thursday , 25 Feb 2010

LONDON - 

As gold appears to be marking time amidst an array of uncertainties, it is probably quicker for the reader to look at a series of pictures than to be presented with screeds of text.  Essentially gold's superficially lack-lustre performance in the middle of February can be lain at the feet of questions over future economic policies for the world's largest industrial countries, including interpretation of Dr Bernanke's latest statements, the moves within China and the latest concerns over Europe, notably the likelihood of a downgrade of Greece's debt.

Gold: A picture tells a thousand words

Post from: Gold News from Gold Editor

Gold: A picture tells a thousand words

Gold, Silver & Stock Indices on the Verge of Rolling Over?

This week has been playing out as we expected. Last week we saw the market rally on light volume into a resistance zone on the daily chart. Light volume rallies are always a warning sign, much like the “Calm before a Storm”.

 Gold, Silver & Stock Indices on the Verge of Rolling Over?

Post from: Gold News from Gold Editor

Gold, Silver & Stock Indices on the Verge of Rolling Over?

BULLETIN

Gold miners agree to pay up to $100mn in taxes to Nevada

Nevada legislators say the state’s mining industry has agreed to pay up to $100 million in taxes and fees to the state.

Author: Dorothy Kosich
Posted:  Thursday , 25 Feb 2010

RENO, NV - 

Nevada gold miners have  reportedly agreed to make a deal with the Nevada Legislature to pay from $75 million to $100 million to the state.

Assembly Majority Leader John Oceguera, D-Las Vegas, told the news media that the deal would involve mainly fees with a little from pre-payment of net proceeds of mines taxes.

State Budget Director Andrew Clinger told the Las Vegas Review Journal that if miners agree to poay $60 million in additional taxes, Gov. Jim Gibbons would withdraw his proposal to change and cap state mining tax deductions.

Gold miners agree to pay up to $100mn in taxes to Nevada

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Gold miners agree to pay up to $100mn in taxes to Nevada