Morgan Stanley: Gold Upward Momentum Could Intensify If Macro Worries Persist
Precious metals could rise some more if macroeconomic concerns continue, says Morgan Stanley. The gold market was bid during a volatile week in other markets last week, although the firm describes the move in gold as “not overly aggressive.” Morgan Stanley adds, “the gold price is not yet telling us we are entering into a global macro event, just a scare. At the same time, it’s clear the large short positions are unwinding, and should broader macro concerns persist, we think it’s likely upward price momentum could intensify.” Gold is bid again so far Monday morning. As of 8:53 a.m. EDT, the Comex December futures were up $7.10 to $1,246.10 an ounce and hit a high of $1,249.30 that stopped just shy of last week’s five-week high of $1,250.30.
Gold Up Amid Still-Shaky Market Place; Technical Momentum Building
(Kitco News) – Gold prices are moderately higher and hovering near a five-week high in early U.S. trading Monday, boosted by more safe-haven demand and bargain hunting.
Read moreGold Eases Slightly As ‘Nervousness’ In Other Markets Abates At Start Of New Week
(Kitco News) -Gold futures have started the week modestly softer as some of the general nervousness in a broad range of markets last week lets up, at least in Sunday night electronic trading and the start of trading in the Asia-Pacific region.
Read moreGold Market Will Watch Stocks, Positioning Ahead Of FOMC Next Week
As a volatile week draws to an end, gold market traders will keep an eye on the stock market and by the end of next week they will also start to position themselves ahead of the Federal Open Market Committee meeting at the end of October.
Read moreBarclays: Physical Gold Demand Returns, But Not Aggressively
Physical demand for gold has picked up during a seasonally strong period for consumption, says Barclays. “Demand had been rather lackluster in early September but prices falling below $1200/oz reinvigorated interest,” Barclays says. “Local premiums in India have risen to $12-15/oz from $7/oz, while premiums in China have almost doubled to $6/oz. China’s ministry of commerce reported that sales by some jewelry retailers doubled during the Golden Week holiday, buoyed by lower prices and local promotions. A broader indicator suggests interest has risen to levels last seen in spring last year — volume traded on the Shanghai Gold Exchange on a monthly rolling basis is at its highest since May 2013, while the 12-month rolling average is at its highest since April 2014. But, in India, local traders have said jewelry sales are mostly being driven by old pieces being traded in rather than incremental buying…Given that the Diwali holiday is next week, ahead of the wedding season, we expect demand to improve, potentially offsetting macro headwinds in the near term.”
Editor’s Note: I Remember When It Started – Daniela Looks Back
Last week, I discovered you can eat your gold, and this week I learned that drinking silver might prevent the Ebola virus. There truly is never a dull moment in the precious metals community!
Read moreCapital Economics: Silver To Outperform Gold As Prospects Improve For Both
Capital Economics sees gold prices rallying to $1,300 an ounce next year and silver doing even better.
Read moreSurvey Participants Lean Bearish Toward Gold Prices Next Week
A nominal number of participants in the weekly Kitco News Gold Survey lean bearish toward gold prices next week, although neither group had a dominant viewpoint.
Read moreLBMA Receives Eight Proposals For New Gold-Fixing Mechanism
(Kitco News) -Eight proposals from 10 companies have been submitted by companies interested in developing and administering a new gold-fixing mechanism, the London Bullion Association reported Friday.
Read moreSilver Coin Sales Are “The Silver Lining” of Past 5 Years
(Kitco News) – Gold coin purchases hit record highs in 2013, but investor appetite appears to have been sated so far this year with sales down compared to five years ago. Demand for silver, on the other hand, remains strong five years later.