06
May
2009

Gold Investments Market Update

Gold and silver rose marginally yesterday as the dollar again fell. Gold initially surged to over $914/oz (from $901/oz) prior to determined selling capped the price and saw it fall again below the psychologically important $900/oz mark. Silver was again more resilient and rose 2.8% to $13.40/oz. Both have gradually eked out gains in Asia and early European trading.

Concerns about the international financial system and their implications for the dollar and other currencies and inflation going forward look likely to see gold remain firm for the foreseeable future.

Continue Reading
05
May
2009

Gold Investments Market Update

Gold and silver both fell some 3% last week despite increasingly bullish technicals and fundamentals. Risk appetite remains high as seen in equity markets onward advance in the face of falling earnings and latent risk. Yesterday gold and silver soared as US stock markets opened and eked out strong gains of 1.8% and over 4% respectively, erasing last week’s losses.

The dollar was marginally lower for the week and fell sharply yesterday. The dollar could be on the verge of the next stage of the dollar bear market after the recent bear market rally.

Continue Reading
30
Apr
2009

Gold versus Warren Buffett

I have just completed an analysis of the performance of the spot price of gold vs. Berkshire Hathaway. I think you will find the results are a little suprising.

Spot Gold vs. Bershire Hathaway

Continue Reading
30
Apr
2009

Gold Investments Market Update

Gold and silver rose yesterday (the first day in three) after the worse than expected US GDP report saw the dollar fall in value. Gold fell after the Federal Reserve released its optimistic note but recovered almost immediately.

Gold subsequently traded sideways in Asia and early trading in Europe prior to another bout of furious selling just after 1000 GMT this morning which again saw gold fall a very sharp $10 in a matter of minutes despite the lack of any market or economic news of great significance.

Continue Reading
29
Apr
2009

Gold Investments Market Update

Gold fell marginally for a second day yesterday as it continues to consolidate after last week’s 5% gain. Gold’s trading was erratic yesterday with unusually large sell orders leading to sharp falls in the price in seconds prior to mild rebounds. Such sharp and speedy declines are very unusual and would suggest a large player wanted gold prices lower in the futures market.

Continue Reading
28
Apr
2009

Gold Investments Market Update

Gold fell modestly yesterday while silver rallied as markets digested the unpalatable news of a potential global swine flu pandemic.

Continue Reading
17
Apr
2009

Gold Investments Market Update

Gold and silver fell yesterday (1% and nearly 4% respectively) as strength in the dollar and increasing risk appetite, as seen in rising equity indices, saw the precious metals come under pressure.

Demand remains strong despite the slight fall in the holdings of the SPDR Gold Trust (world’s largest gold ETF), whose holdings fell 0.7% from the previous day (down 0.7 percent or 8.25 tonnes to 1,119.43 tonnes as of April 16). But demand in India has resumed for the Hindu festival of Akshaya Tritya (considered an auspicious time to buy gold) and while not spectacular is robust nevertheless.

Continue Reading
16
Apr
2009

Gold Investments Market Update

Gold and silver rose marginally in US trading yesterday and have largely traded sideways in Asian and European trading. Gold appears to be consolidating in the $865/oz to $900/oz region and needs a higher weekly close (above $883/oz) and then a close above $900/oz to look good from a technical perspective.

Continue Reading
15
Apr
2009

Gold Investments Market Update

While gold fell marginally yesterday on the COMEX, it was up some 1% on the day overall with small gains in Asia and Europe.

Obama’s message of hope for the US economy (while warning that the US economy was “by no means out of the woods just yet”) has been met with indifference in equity markets which are down in Europe this morning.

Continue Reading
14
Apr
2009

Gold Investments Market Update

Gold and silver rose yesterday as stocks came under pressure with increasing fears regarding General Motors possible bankruptcy.

Ostensibly positive news from the financials (Wells Fargo and Goldman Sachs) has lifted markets in recent days but there are concerns that the positive results may have had more to do with government largesse (with tax payers’ money) and innovative accounting rather than any meaningful return to profitability.

Continue Reading