Gold Sells Off on FOMC Minutes That Favor Hawks, and on Rallying U.S. Dollar
Gold prices traded solidly lower and hit a three-week low Wednesday afternoon, in the immediate aftermath of the latest FOMC statement that was deemed a bit hawkish on U.S. monetary policy. The U.S. dollar index also surged on the FOMC statement, whic…
Read moreFederal Reserve Ends Bond-Purchase Program
(Kitco News) – As expected, the Federal Reserve officially ended its monthly bond-purchase program following the October Federal Open Market Committee meeting.
Read moreU.S. Bank: Any Macroeconomic Improvement Should Boost Base Metals
Improvement in the global macroeconomic picture is likely to help base metals, particularly since there is some supply tightness, says U.S. Bank Wealth Management. The firm notes that improved economic news for China helped copper prices rebound 1% for the last week, returning prices above the key $3-per-pound level. Nickel, meanwhile, lost more than 4%, with the metal retracing most of its year-to-date gains as stockpiles have risen in Asia despite the Indonesian export ban. “On balance, this left the industrial metals complex unchanged for the week,” the firm says. “On average, the industrial metals complex seems to have a tighter balance of supply relative to demand. Any improvements in global economic data will likely lead to rising prices.”
LBMA: Ounces Of Gold Transferred Declines In September But Silver Activity Higher
(Kitco News) – The amount of gold transferred between accounts of London Bullion Market Association members fell in September, but the amount of silver exchanging hands increased, the organization said Wednesday.
Read moreWednesday’s Forex Analytical Charts
Read moreWednesday’s Analytical Charts for Gold, Silver and Platinum and Palladium
Read moreGold Slightly Lower Ahead of FOMC Statement
(Kitco News) – Gold prices are slightly lower in subdued early U.S. trading Wednesday.
Read moreSpace Mining Company Loses Test Vehicle In NASA Rocket Explosion
(Kitco News) – Planetary Resources, a company developing technology that they hope will one day mine asteroids, lost a test vehicle after an unmanned NASA-contracted rocket exploded shortly after takeoff Tuesday evening.
Read moreBid To Win A Coffee With Your Favorite Mining Mentor
Hoping to get firsthand knowledge from a Mining CEO on the ins-and-outs of the industry? A social network for women in mining is making the likes of Pierre Lassonde and Rob McEwen more accessible during an evening auction.
Read moreSocGen: Yes Vote In Switzerland Would ‘Significantly’ Increase Central-Bank Purchases
If a Swiss referendum passes, net central-bank gold purchases likely would increase substantially from recent years, says Societe Generale. Switzerland will vote on a referendum on Nov. 30 that would do several things, including a requirement that the central bank hold 20% of its official reserves in gold. The central bank has held 1,040 metric tons since 2008, SocGen says. “At the end of 2013, gold made up 7.4% of the Swiss National Bank’s official reserves, which was the lowest level of gold’s share of official reserves since the IMF (International Monetary Fund) began collecting data in 1948,” SocGen notes. Should the referendum pass, the price will determine how much gold the SNB has to buy. At $1,000 an ounce, and assuming other official reserves remained flat from end-of-2013 levels, the central bank would buy a little more than 2,800 metric tons. At $1,500 gold, the central bank would buy just over 1,500 tons, SocGen continues. Sales would likely occur over a multi-year period. Since 2010, global central banks have been net buyers of between 77 and 500 tons annually. “If the SNB were to begin a multi-year gold-buying program, net purchases could increase significantly from levels seen in the past few years,” SocGen says. “To provide some context, if the SNB were to buy 500 metric tons of gold per annum for three years, this would amount to 12% of total supply and 10% of total physical demand in 2013.”