OptionsXpress: Fundamentals And Technicals Point To Lower Gold Price
The fundamental and technical picture for gold does not paint a supportive picture for the yellow metal, says Rob Kurzatkowski, senior commodity analyst at OptionsXpress. Looking at the technical picture, he says gold could eventually test support at $1,175 or $1,150 as prices have broken below their major moving averages. “Given the preceding down move in the market over the past month to month and a half, the bias seems to be to the downside out of this consolidation,” he said. The fundamental picture is just a gloomy as the need for safe-haven demand has decreased as Greece managed to negotiate a four-month funding agreement with its creditors. Also add markets ignoring continued conflicts in Ukraine and President Obama’s pledge to increase military action against Islamic State (ISIS) fighters. “Investors have been saturated with news on both fronts, so traders may be a bit indifferent to fresh news, barring a major escalation. In the near-term, gold may be more sensitive to currency fluctuations and interest rate speculation rather than geopolitical events,” he says.
Gold Ends Weaker, Hits 7-Week Low; Yellen Remarks Benign
(Kitco News) – Gold prices ended the U.S. day session slightly lower and right about where the trading day began. Testimony from Fed Chair Janet Yellen in front of the U.S. Senate had no lasting effect on precious metals prices. The stronger U.S. dollar continues to be a bearish underlying factor working against the precious metals bulls. April Comex gold was last down $2.30 at $1,198.50 an ounce. May Comex silver last traded down $0.069 at $16.23 an ounce.
Confident In Argentina; Eyeing Free Cash Flow – Chuck Jeannes
(Kitco News) – Goldcorp Inc.’s (TSX:G)(NYSE:GG) belief in operating its assets in Argentina has not wavered after the company absorbed a $2.3 billion non-cash impairment charge on its newest mine in the country.
Central Banks Shouldn’t Be Penalized For Monetary Policies That Weaken Its Currency – Yellen
(Kitco News) – Central banks should not be penalized in government trade agreements for adjusting monetary policies that would impact foreign exchange markets, says Fed Chair Janet Yellen, which she adds is not currency manipulation.
Read moreYellen: Change In Target Range Could Be At Any Meeting
The Federal Reserve could end up raising rates sooner than the market is expecting, according to Fed Chair Janet Yellen’s prepared statement before the U.S. Senate Committee on Banking Housing and Urban Affairs.
Ernst & Young’s Canadian Mining Eye Index Down In 4Q
(Kitco News) – While Ernst & Young’s (EY) Canadian Mining Eye index was down again during the fourth quarter of 2014, it did see an improvement quarter-on-quarter.
Quebec Sees Big Rebound In Fraser Institute Mining Survey
After taking a pretty solid beating over the last few years in the mining sector, Quebec has surged back up to the sixth best mining jurisdiction in the world.
Read moreGold Slightly Lower as Yellen Testimony Awaited
Gold prices are slightly lower but treading water in early U.S. dealings Tuesday.
Read moreThe 6PM Recap With Gary Wagner: Slow Gold on Greece and Yellen
Gold is off today modestly entirely on dollar strength, regular trading pushing back on the small battlefield. Investors are awaiting two pieces of news before bigger moves are made, as well as looking at a surprise move out of OPEC.
Read moreCapital Economics: No Guarantee Greek Deal Will Go Through
A funding agreement between Greece and its European creditors is not a done deal, says said Jennifer McKeown, senior European economist at Capital Economics. Greece has already announced that it will delay sending a list of reforms to the Eurogroup until Tuesday as dissention rising within the political party. “It is clear that Greece has made huge concessions, which its Parliament might not endorse. And even if it does, there is still the major hurdle of long-term debt restructuring to overcome in the not too distant future,” she says. “Even assuming that the deal holds, it is unclear how the Government will meet its financial obligations (chiefly to the IMF) between now and the end of April when its next bailout installment might finally be paid.” Capital Economics has been bullish on gold prices as they think the market has significantly underpriced the risk of Greece defaulting on its loans and being forced to exit the euro.