Analysis Topic: Commodity Markets - Metals, Softs & Oils
The analysis published under this topic are as follows.Thursday, December 09, 2010
Gold Price Capped by Surging Bond Yields / Commodities / Gold and Silver 2010
THE PRICE OF GOLD bar prices moved sideways vs. the Dollar but recovered against a falling Euro in London trade on Thursday morning, doubling a 0.5% rise in Eurozone stock markets.
“We believe a short-term top is now in place off $1430,” says technical analysis from market-maker Scotia Mocatta, pointing to “key support” at $1353.
Thursday, December 09, 2010
Gold, Silver, Oil: Volatility is the New Stability / Commodities / Gold and Silver 2010
In the last 30 day period, the price of gold has swung up and down like a yo-yo between $1,340 and ounce, and $1,420 an ounce, giving it a volatility ratio of 5.6%. Silver, in the same period traded between $25.38 and 30.50, which gives it a 16% volatility ratio. Oil’s volatility range over thirty days lies between $80.28 and $90.87, or 11.65%.
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Thursday, December 09, 2010
Long Term Interest Rate Rises Should Support Higher Gold Prices / Commodities / Gold and Silver 2010
Market focus has shifted to the US bond market and concerns about ultra accommodative US monetary and fiscal policy and continuing quantitative easing. This has seen heavy selling of long term US government debt and long term interest rates have thus risen. The yield on US 10 year Treasuries (benchmark cost of capital internationally) has risen from below 2.4% to over 3.2% in just two months and from 2.95% to 3.23% since just last Monday and the speed of the rise is what is concerning.Read full article... Read full article...
Thursday, December 09, 2010
Why Gold is an Insurance Policy that Investors Should Never Cash In On / Commodities / Gold and Silver 2010
Jon Nadler has never been without gold. In fact, it actually helped saved his life. But that doesn't mean the senior analyst for Kitco Metals wants to see gold's sky-high price edge even higher. In this exclusive interview with The Gold Report, Jon explains why gold is an insurance policy that investors should never want to cash in on.
The Gold Report: Jon, many people classify you as a gold bear. What do you think of that characterization?
Thursday, December 09, 2010
Agri-Foods Investments Continue to Soar in Value on Growing Global Demand / Commodities / Agricultural Commodities
While preparing final copy of December issue of The Agri-Food Value View last week we thought that most of the relevant weather news had been covered. Then from down under came news of too much rain. Australia is not somewhere from which we expect to get such news. More often lack of rain is reported. That rain came as some Australian farmers were attempting to harvest the wheat crop. Yes, Australia is on a different weather cycle from Kansas City.
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Wednesday, December 08, 2010
How to Play the Gold Silver Ratio / Commodities / Gold and Silver 2010
The gold-silver ratio is perhaps one of the first indicators traders looked at to comprehend the state of the precious metals market and accordingly acquire positions. Indeed, it has been out of favor among modern investors who believe that this is one ratio even his barber is tuned in to and a simple sinusoidal movement does not often work. Anything that goes up comes down – while the cliché cannot be disregarded, if an uncomplicated philosophy like that really worked as simply, it would have earned several investors guaranteed profits over time. It is essential to understand that the game in the markets is all about being in the side who are doing things that the majority are not, given that the majority loses. In order to outsmart the majority, we need to look at the gold silver ratio in a way the majority is not.Read full article... Read full article...
Wednesday, December 08, 2010
What's Ahead for Crude Oil? / Commodities / Crude Oil
There's no question about it, 2010 has been pretty difficult for most traders in the crude oil market. This year has produced no discernible, lasting trends in this market. The trends it has produced have lasted little more than just 3 or 4 weeks at best.
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Wednesday, December 08, 2010
Commodities Outlook Remains Positive / Commodities / CRB Index
With news of a compromise on extending the Bush tax cuts, recent strength in the U.S. dollar, and signals from China it may raise interest rates, it is a good time to check on the health of weak-dollar assets, such as commodities (DBC). Commodities, especially hard commodities like copper (JJC) and gold (GLD), are often used as a way to protect purchasing power during periods where concerns about future inflation are elevated.
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Wednesday, December 08, 2010
Gold and Silver Tumble From Bull Market Highs on Rising Interest Rates / Commodities / Gold and Silver 2010
THE PRICE OF GOLD continued to fall in Asia and London on Wednesday, dropping 2.8% from Tuesday's new record high of $1430 per ounce as commodity markets also fell and global stock markets stalled.
Crude oil slipped further from yesterday's new two-year highs, but major-economy government bonds also extended their losses, driving 10-year US Treasury yields above 3.20% even as the US Dollar rallied sharply on the forex market.
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Wednesday, December 08, 2010
Hedge Funds and Investors Target Silver 1980 Record High / Commodities / Gold and Silver 2010
Gold and silver prices reached new record highs of $1,430.95/oz and 30 year highs of $30.68/oz respectively yesterday. It is important to remember that these are nominal highs of more than 30 years ago. Adjusted for inflation, the record highs are $2,300/oz and $130/oz (see silver charts below). Gold also reached new record nominal highs in sterling, euros and most major currencies yesterday on growing concerns about currency debasement.Read full article... Read full article...
Wednesday, December 08, 2010
Gold Coated Tungsten Bars, Chinese Fakes Grow In Complexity / Commodities / Gold and Silver 2010
Gone are the days of gold coated tungsten bars, shaved or skimped ounce rounds, or completely faked gold painted coins sold as replicas. Today's gold fakers are using alloys – not coatings – to produce some of the best fakes the physical gold market has ever seen.
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Wednesday, December 08, 2010
Gold Breakout in Real Terms Means Good Times are Ahead for Gold Bulls / Commodities / Gold and Silver 2010
In past commentaries, I've written about my favorite form of technical analysis. That is intermarket analysis. Intermarket analysis takes traditional technical analysis much further. Normally, we'd look at a market by itself. We'd look at its price action, potential patterns and its momentum. Intermarket analysis takes this a step further by comparing the market at hand to various other markets. It gives us an idea of what is really going on and where market leadership is.
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Wednesday, December 08, 2010
Crude Oil Price Ten Year Forecast to 2020 / Commodities / Crude Oil
“Prediction is extremely difficult, especially about the future”: Niels Bohr
Once upon a time everything was predictable. Rating agencies could “almost” guarantee negligible default rates on bonds bearing pretty AAA investment grade stickers. And as the free-world slumbered, Noble Prize-winning economists fiddled with (fiendishly) clever theories like Inflation Targeting and the Black–Scholes-Model, which (theoretically) were going to create immense wealth out of thin air.
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Wednesday, December 08, 2010
The 12 Gold Bugs of Christmas / Commodities / Gold and Silver 2010
Warren Buffett recently remarked that you can't value gold like an oil company or farmland, so we should forget gold and buy equities. But he misses the point! Gold doesn't produce value because it is value; in other words, gold is money.
It's sad to see Mr. Buffett go to the dark side. But, as I'm about to show, he's losing company when it comes to his views on gold.
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Wednesday, December 08, 2010
Gold Stocks HUI Set for Explosive Bull Run During 2011 / Commodities / Gold & Silver Stocks
Joseph E. Taglioli writes: We appear to be at the 3rd wave juncture where the large cap producer gold and silver stocks and intermediate precious metals producer/developer stocks tend to start to move much better - and where the smaller explorer class starts to kick up its heels.
Let me show you what I mean with a few charts that will give you a clear visual of why “you ain't seen nothing, yet” when it come to the future performance of the stocks (and warrants) of gold and silver mining and royalty companies.
Wednesday, December 08, 2010
Greg Weldon: Gold Price Still Has Significant Upside / Commodities / Gold and Silver 2010
Michael Campbell: What are the implications of solving a huge debt problem by taking on more debt?
Greg Weldon: Its more than Ireland or Greece when you think that 25 out of 27 EU nations are in violation of rules on either debts or deficit relative to their GDP. We’ve been saying for a long time that for Europe to to bail out Europe is ridiculous. To think that the US is going to commit a trillion dollars to any foreign bail outs is even more ludicrous. Really the spark in the stock markets around the world was that comment from an unnamed US official that the United States promised to buoy up the International Monetary Fund, with another trillion dollars.
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Wednesday, December 08, 2010
Gold New Record High at $1,428/oz on Sovereign Debt and Currency Crisis Concerns / Commodities / Gold and Silver 2010
Gold has reached new record nominal highs (in most major currencies) and silver a new 30 year nominal high due to a variety of macroeconomic and geopolitical factors. Market focus remains on the Eurozone debt crisis but has shifted somewhat to concerns about ultra loose US monetary policy and the likelihood that this will lead to a devaluation of the dollar, inflation and currency debasement.
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Tuesday, December 07, 2010
Silver's 30-Year High is Just the Beginning / Commodities / Gold and Silver 2010
Jason Simpkins writes: The price of silver today (Monday) surged above $30 an ounce for the first time since 1980, after U.S. Federal Reserve Chairman Ben Bernanke indicated that further quantitative easing (QE) could be on the way.
Silver futures have gained almost 70% since August, when expectations of more QE were first discussed. Since then, the Federal Reserve has set about purchasing $600 billion of U.S. Treasuries and the Fed Chairman said on Sunday that more debt purchases are "certainly possible."
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Tuesday, December 07, 2010
Stocks Leading Oil Prices Higher / Commodities / Crude Oil
The direction of oil prices continues to remain a topic of hot debate by many analysts and economists. The key elements of global consumption rates, inventory levels, OPEC and non-OPEC supply, all play a decisive role in the long term picture of this natural resource. Yet for most investors, the path of oil can be simply found in the stock market.
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Tuesday, December 07, 2010
Investor Tips on Riding the Gold and Commodities Bull Market / Commodities / Gold and Silver 2010
Global Resource Investments Founder Rick Rule is always generous in sharing his wit and wisdom. In this Gold Report transcript of his Friday, Dec. 3, webcast, he covers a lot of territory and provides plenty of tips for investors as they face the extreme volatility he foresees. Despite the volatility, Rick believes the secular commodities bull market will continue its charge. Read on to find out what he says you need to stomach the highs and lows in this investment arena.