Review & Outlook – April, 2015

Reflections in a Golden Eye
Rejection, repatriation and redemption in the gold market

germanmoney

Caveat venditor

Let the seller beware! The German citizen/investor who put away a few rolls of 20 mark gold coins (.2304 tr ozs. shown below) in 1918 would have done so at 119 marks per ounce. By early 1920 the previous rapid inflation had suddenly given way to deflation. Had that gold owner decided to cash in on gold’s significant gains thinking runaway inflation was over, a 100,000 mark investment would have made him or her a millionaire. The glow, however, would have quickly worn off. By late 1921 the runaway inflation had resurfaced but now with a vengeance. Gold shot to 4,000 marks per ounce. By mid-1922 gold reached 10,000 marks per ounce and the wholesale price index went from 13 to 70.  By late 1922, the roof caved in. Gold traded at 134,000 marks per ounce.  In January, 1923, it cracked 1,000,000 marks per ounce.  By midyear, it broke the 100 million marks per ounce barrier and at the peak of the hyperinflationary breakdown, it sold for over 100 billion marks per ounce.  The individual who thought he or she had the cat by the tail and cashed-in his or her golden chips during the 1920′s deflation became a millionaire. In short order though, that millionaire became a pauper as wave after wave of hyperinflation washed over the German economy. One moral from this somewhat frightening tale is that becoming a millionaire or even a billionaire on one’s gold holdings was inconsequential. Another is not to give up one’s hedge until there is ample evidence that it is no longer needed. Momentary nominal profits can be illusory.

Caveat venditor!

Also:
New Fix same as the old Fix
Federal budget myths and reality
How gold benefits from the yuan’s challenge to the dollar
The potential effects of the gold repatriations on the rest of the market

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Posted in all posts |

End-of-week top gold news

Friday, 27-Mar-2015

Lydia Mulvany (Bloomberg) Yellen Gives Gold Bulls Biggest Rally on Rates Since January “Janet Yellen gave gold bulls a gift when she signaled policy makers aren’t rushing to raise interest rates. Gold had its biggest weekly gain in two months on the prospect that U.S. rates will stay lower for longer.”

Note: Gold had a good week last week and was able to add to gains this week amid ongoing reallocations associated with a more dovish than expected Fed.

Izabella Kaminska (FTAlphaville) Is the Fed bluffing on rate hikes? “It might not be polite to say it overtly, but concerns are growing that the Fed’s rate hiking promises may be nothing more than a big bluff. The vogue for doubting Fed rhetoric started in earnest on March 11, when Ray Dalio, founder of hedge fund firm Bridgewater Associates, wrote to investors that there was a risk if the Fed raised rates too fast it could create a market rout similar to that of 1937.”

Note: My doubts about a Fed rate hike stretch back considerably further than March 11. I was en vogue early!

Tommy Stubbington (Wall Street Journal) Torrent of Cash Exits Eurozone “A wave of cash is leaving the eurozone, where returns on safe assets are infinitesimal, if they are positive at all, and headed to the U.S. and other refuges such as Denmark and Switzerland.”

Note: Though the WSJ doesn’t mention it specifically, there is ample evidence to suggest that some of those outflows are going into gold.

Kooz Jansen (BullionStar) Indian Gold Import Exploding In March “March has not even ended, though preliminary data indicates India has already imported over 130 tonnes of gold this month. A conservative estimate suggests total gross import can reach 150 tonnes of gold this month.”

Note: That’s an impressive number, especially when you consider all the duties and restrictions that remain in place.

Ira Iosebashvili (Wall Street Journal) Gold Prices Hit Three-Week High on Interest-Rate Expectations “Gold prices rose to their highest level in three weeks on Wednesday, as weak U.S. data bolstered the argument the Federal Reserve would likely take its time before raising interest rates.”

Note: Durable goods orders tumbled in February, missing expectations by a wide margin and prompting negative revisions to GDP forecasts.

Debarati Roy & Eddie Van Der Walt (Bloomberg) Gold Rallies for 7th Day as Yemen Turmoil Boosts Precious Metals “Gold headed for its longest run of gains in more than two years as Saudi Arabia and its allies started bombing targets in Yemen, boosting demand for a haven.”

Note: Military action in Yemen added to already high geopolitical tensions, promoting safe-haven flows into gold.

Juan Carlos Artigas (World Gold Council) Gold in a rising dollar environment “Generally, there is an inverse correlation between gold and the dollar. However, our analysis shows that the gold price increases more when the dollar weakens than it falls when the dollar strengthens. In our view, the dollar’s relationship with gold has changed dramatically over the past decades and is likely to shift further as demand moves East and the world moves to a multicurrency system.”

Note: We noted repeatedly throughout the recent dollar rally that gold was proving remarkably resilient. As the dollar index set new 12-year highs, the yellow metal wasn’t even able to get below last November’s low. As for the move to a “multicurrency system”; that’s a polite way of reminding us that the dollar is falling out of favor a s the sole global reserve currency.

(Reuters) China should boost gold reserves to 5 pct, says World Gold Council “China should increase its gold holdings to around 5 percent of its total foreign exchange reserves to help diversify currency risks, the World Gold Council (WGC) said. China currently holds about 1.6 percent of its foreign exchange reserves in gold, which is relatively low compared with developed countries and some developing countries, WGC China managing director Roland Wang said.”

Note: I don’t think China particularly needed the nod from the WGC to continue their voracious accumulation of gold as a reserve asset. Everyone is pretty aware that China has been building reserves consistently since they surprised the world in 2009 by announcing they had accumulated 1054 tonnes of gold. Their efforts are likely to continue for some time to come.

Posted in Gold News, Gold Views |

Fed rate hike may be warranted later this year: Yellen

27-Mar (Reuters) – The U.S. Federal Reserve is giving “serious consideration” to beginning to reduce its accommodative monetary policy and a rate hike may be warranted later this year, although a downturn in core inflation or wage growth could force it to hold off, the central bank’s chief said on Friday.

Fed Chair Janet Yellen said that after the first rate increase a further, gradual tightening in monetary policy will likely be warranted. If incoming data fails to support the Fed’s forecast, the path of policy will be adjusted, she said.

“With continued improvement in economic conditions, an increase in the target range for that rate may well be warranted later this year,” Yellen said in prepared remarks at a monetary policy conference at the Federal Reserve Bank of San Francisco.

Yellen added that the timing and the path of a Fed hike would depend on the incoming economic data.

[source]

PG View: Perhaps a modestly more hawkish tenor, to keep investors on their heels in the wake of the more dovish than expected tone at the FOMC meeting. The qualifiers remain though and any move is still data dependent.

Posted in Central Banks, Monetary Policy, QE |

ECB’s Weidmann: ‘No more emergency loans for Greece’

27-Mar (Independent) — The head of Germany’s Bundesbank has said that he is opposed to more emergency funding for Greece, adding that debt in the Eurozone has entered the “danger zone”.

Speaking to the weekly Focus magazine Jens Weidmann said: “Until the autumn, an improvement in the economy had been discernible. But the new [Greek] government has gambled away a lot of trust.”

He added: “I am opposed to an increase in the emergency loans.”

As the head of Germany’s Central Bank, Mr Weidmann wields a strong influence on the European Central Bank’s decision-making governing council, which he also sits on.

In the text of a speech to be delivered at a conference in Frankfurt he added: “In the euro area we are already in the danger zone – at least with regard to public debt standing at 91pc and corporate debt at 105pc.”

[source]

Posted in all posts, European Debt Crisis |

No One Sees Easy Way Out on Ukraine

26-Mar (New York Times) — Hardly anyone expects Ukraine to get better before it gets worse, or for the latest set of commitments in last month’s cease-fire agreement to be kept.

Instead, senior Western diplomats and analysts are predicting a further escalation of tensions, including the placing of Russian nuclear weapons in newly annexed Crimea; more unrest in cities like Mariupol and even Odessa; more advances by Russian-supported rebels against an under-gunned and dispirited Ukrainian Army; and attempts to destabilize the Western-leaning government in Kiev, beginning with President Petro O. Poroshenko.

Mr. Poroshenko, weakened by the loss of Crimea and a large, contiguous chunk of eastern Ukraine, faces Western demands for economic overhauls, increased energy prices and a crackdown on corruption to justify billions in loans and aid. He also confronts new challenges from oligarchs like Igor V. Kolomoisky over control of energy companies and private militias with flexible loyalties to the state, or what’s left of it.

The West, which claims to be united, is actually divided over Russia’s actions in Ukraine and how to respond.

[sources]

Posted in all posts, Geopolitical Risks |

The Daily Market Report: Gold Appears Poised for Second Consecutive Weekly Gain


27-Mar (USAGOLD) — Gold turned mildly corrective Friday, drive by profit taking after notching seven consecutive winning days. Despite the pullback, the yellow metal appears poised for a second consecutive higher weekly close. After dipping to an intraday low of $1192.00, gold is once again probing above $1200.

The main driver for gold recently has been the realization that the era of über-accommodative monetary policy is not coming to an end any time soon. With the BoJ and ECB in full easing mode with QE, the Fed which had been hinting at a rate hike this year, has now taken on a much more dovish tone. That has pushed rate hike expectations from March, to June to September…and more out now thinking lift-off wont happen this year at all.

Rising geopolitical tensions in the middle east are also helping to underpin gold. The Saudi coalition bombing intensified today amid concerns that the conflict is devolving into a proxy war between Saudi Arabia and Iran. This will likely perpetuate the already seething hatred between Sunnis and Shiites, potentially leading to an even broader conflict in the region.

The retreat in the dollar and recent stock market volatility have been supportive to gold as well. The dollar decline was triggered by the Fed’s dovishness. Stocks have generally risen on easier policy expectations, but this time equity investors seem to be giving greater credence to diminished growth prospects. As investors move out of shares, they frequently reallocate to safe-havens like gold.

Posted in Daily Market Report, Gold News, Gold Views |

China should boost gold reserves to 5 pct, says World Gold Council

26-Mar (Reuters) – China should increase its gold holdings to around 5 percent of its total foreign exchange reserves to help diversify currency risks, the World Gold Council (WGC) said.

China currently holds about 1.6 percent of its foreign exchange reserves in gold, which is relatively low compared with developed countries and some developing countries, WGC China managing director Roland Wang said.

“The ideal amount should be at least 5 percent of its total forex reserves,” Wang told Reuters in an interview in Hong Kong.

…Increased gold holdings could boost investor confidence at a time when China is pushing the internationalization of the yuan, he added.

[source]

Posted in all posts, Gold News, Gold Views |

Gold falls on dollar after 7-day rally; set for 2nd weekly gain

27-Mar (Reuters) – Gold fell on Friday, snapping a seven-day rally as the dollar rebounded after Federal Reserve officials signalled they remained on track to raise rates this year, but the metal still looked set to post its second straight weekly gain.

…Saudi Arabia and its allies launched air strikes in Yemen on Wednesday, rattling wider markets and supporting gold, usually seen as an insurance against risk.

…Despite Friday’s losses, gold was on track to finish the week up around 1.5 percent after its seven-day rally, the metal’s longest winning stretch since August 2012.

Gold had gained strength after the Fed sounded cautious at its policy meeting last week about the pace of an interest rate increase, prompting the dollar to fall from multi-year highs.

[source]

Posted in Gold News, Gold Views |

Here Are the Countries With the Most Gold Reserves, and the Ones That Have Been Buying it the Most


27-Mar (Bloomberg) — At the turn of the millennium, it seemed that gold was starting to go out of fashion with the world’s central bankers as a reserve asset.

Between January 2000 and March 2009, central banks reduced their reserve holdings of gold by more than 114 million troy ounces. Since then—possibly driven by the recovery in gold prices and the global financial crisis—central banks have steadily been increasing their holdings.

…t is not the top four adding to reserves since 2009 that has caused the turnaround in global holdings. Instead it is emerging and developing markets that have been loading up on gold, with Russia, India, and Turkey accounting for more than 60 percent of the net change in global gold holdings.

[source]

Posted in Gold News, Gold Views |

Yemen Conflict Devolves Into Proxy War

27-Mar (Wall Street Journal) — The conflict in Yemen is quickly devolving into a wider regional conflagration, pitting Shiite Iran and an allied militant group against Saudi Arabia and other Sunni Arab states that came together to launch airstrikes on those militants.

The coordinated Arab attacks led by Saudi Arabia began early Thursday morning and targeted the Shiite-linked Houthi militant group in Yemen. They followed weeks of talks on forging a joint military force to combat what some nations see as regional threats from Iran coupled with a U.S. reluctance to intervene.

[source]

Posted in Geopolitical Risks |

University of Michigan consumer sentiment (final) 93.0 in Mar, above expectations of 91.8, vs 91.2 preliminary print and 95.4 in Feb.

Posted in Economic Data |

Saudi-led coalition pounds Yemen with airstrikes a second day

27-Mar (CNN) — A coalition of Middle Eastern forces pounded positions in Yemen from the air overnight in the second day of a campaign to bring a rebel group to its knees.

…Iran denounced the military intervention. Marzieh Afkham, a spokeswoman for the country’s Foreign Ministry, said the operation will throw an already complicated situation into further turmoil and disrupt chances at a peaceful resolution to Yemen’s monthslong internal strife. It also won’t help a region already facing terrorist threats from groups like ISIS and al Qaeda, she said.

[source]

Posted in Geopolitical Risks |

US Q4 GDP (third report) unch at +2.2%, below expectations of +2.4%, vs +5.0% in Q3.

Posted in Economic Data |

Gold steady at 1202.16 (-1.00). Silver 17.15 (+0.08). Dollar better. Euro lower. Stocks called lower. US 10yr 1.99% (unch).

Posted in Markets |

The Daily Market Report: Gold Surges Back Above $1200


26-Mar (USAGOLD) — Gold surged back above the pivotal $1200 level amid heightened geopolitical tensions in the middle east. The yellow metal reached a 3-week high of 1220.00 before pulling back into the range.

A Saudi Arabia led coalition launched airstrikes against Iranian backed Houthi rebels in Yemen, in support of the deposed government. The U.S. National Security Council confirmed that President Obama authorized “logistical and intelligence support.”

Iran has denounces the bombing as “US-led aggression”. As the U.S./Iran nuclear negotiations near an important deadline, one has to wonder how these latest geopolitcal events might color those talks.

The dollar index fell to a 3-week low overseas as the market continues to unwind long positions that were premised on what many perceived to be the inevitability of Fed tightening this summer. Given the plethora of weak U.S. economic data that have emerged lately and dovish tenor of the latest FOMC statement — and comments of Fed chair Yellen — folks aren’t so sure about that rate hike anymore. You may recall it wasn’t so long ago that many were anticipating lift-off in March.

The World Gold Council released a new Gold Investor report today that focuses on gold’s shifting correlation to the dollar. The WGC has taken notice of the fact that gold price increases twice as much during periods of dollar weakness than it falls during periods of dollar strength.

Gold prices have usually gone up more than twice as much when the dollar was weak compared to how much they have fallen, on average, when the dollar appreciated. — WGC

The resiliency of gold in the face of the recent dollar gains is something we have reported on throughout the rally in the greenback. Think about it; it was just 3-weeks ago that the dollar index was setting 12-year highs above 100.00 and gold didn’t even approach last November’s low at 1131.15, which marked a 5-year low.

There was much talk at the time that the EUR-USD rate was destine for parity. The last time the euro and the dollar were at parity was 2002. Where was gold at that time? It was less than $350!

From that perspective, I would suggest that “weakness” in the gold market has been greatly exaggerated. Certainly when you look at gold priced in euros and yen, the underlying strength in the yellow metal is even more apparent.

Infographic courtesy of World Gold Council

I concur with the WGC’s assessment that much of the erosion of the classic inverse correlation between gold and the dollar is attributable to the shifting of demand to the East. When they speak of the move toward a “multicurrency system,” they are referring to the dollar’s ongoing fall from grace as the world’s sole reserve currency.

Beyond the continued movement of physical gold from weak hands in the West to strong hands in the East, we also see the East gaining further influence over the yellow metal via the impending inclusion of Chinese banks in the new London gold fix. Additionally, the rising importance of the Shanghai Gold Exchange and the expected addition of a yuan denominated fix later this year.

Many anticipated that the ascendency of Asia, and China in particular, would be generally supportive to the gold price. There is mounting evidence that it is happening now.

Posted in all posts, Daily Market Report, Gold News, Gold Views |

US Markit flash services PMI rose to 58.6 in Mar, above expectations of 57.0, vs 57.1 in Feb.

Posted in Economic Data |

Saudi and Arab allies bomb Houthi positions in Yemen

26-Mar (AlJazeera) — Saudi Arabia and a coalition of regional allies have launched a military operation in Yemen against the Houthi rebels, who deposed the US-backed Yemeni president last month.

Adel al-Jubair, Saudi ambassador to the US, said on Wednesday that a coalition consisting of 10 countries, including the Gulf Cooperation Council (GCC), had begun airstrikes at 7pm Eastern time.

“The operation is to defend and support the legitimate government of Yemen and prevent the radical Houthi movement from taking over the country,” Jubair told reporters in Washington.

[source]

Posted in all posts, Geopolitical Risks |

Greece ‘in a corner’ as Europe blocks payment

26-Mar (CNBC) — Greece’s last-ditch attempt to get desperately-needed funds from its euro zone neighbors failed on Wednesday, but the country appears eternally optimistic that a list of reforms — as yet to materialize — will unlock vital aid.

Greece appealed for the European Financial Stability Facility (EFSF) to return 1.2 billion euros ($1.32 billion) it said it had overpaid when it transferred bonds intended for bank recapitalization back to the fund this month, Reuters reported Wednesday.

However, euro zone officials ruled that Greece was not legally entitled to the money, the news wire said.

[source]

Posted in Debt, European Debt Crisis |

Gold Rallies for 7th Day as Yemen Turmoil Boosts Precious Metals

26-Mar (Bloomberg) — Gold headed for its longest run of gains in more than two years as Saudi Arabia and its allies started bombing targets in Yemen, boosting demand for a haven.

Silver, platinum and palladium advanced at least 1 percent, while bullion volume was double the 100-day average for the time of day, data compiled by Bloomberg show. The bombing of Shiite rebels in Yemen marks an escalation in regional tensions with Iran. Saudi Arabia may send ground troops to Yemen, Saudi state TV reported, citing a person it didn’t identify.

“If you start seeing boots on the ground and you start hearing talk of coalitions, that is the time when people start fearing a wider conflict in the Middle East,” Mark O’Byrne, an executive director at bullion dealer Goldcore Ltd., said by phone from Dublin. “That is a classic example of the type of situation in which gold tends to do well.”

[source]

Posted in Gold News, Gold Views |

Gold in a rising dollar environment


26-Mar (World Gold Council) — Generally, there is an inverse correlation between gold and the dollar. However, our analysis shows that the gold price increases more when the dollar weakens than it falls when the dollar strengthens. In our view, the dollar’s relationship with gold has changed dramatically over the past decades and is likely to shift further as demand moves East and the world moves to a multicurrency system.

“The dollar’s influence on gold has softened as demand moves East and the world shifts toward a multicurrency system.”

[source]

PG View: As we noted throughout the recent dollar rally, gold has proven very resilient. As the dollar index set new 12-year highs, the yellow metal wasn’t even able to get below last November’s low.

Posted in Gold News, Gold Views |

US initial jobless claims -9k to 282k in the week ended 21-Mar, below expectations of 291k, vs 291k in the previous week.

Posted in Economic Data |

Oil, gold and yen up on Yemen tensions

26-Mar (Financial Times) — Gold and the yen are in demand following a sharp drop on Wall Street overnight and as oil prices spike in response to increased military action in Yemen.

After a mostly soft session for Asia-based bourses, the FTSE Eurofirst 300 in Europe is stumbling 1.3 per cent, while US index futures suggest the S&P 500 will dip 12 points to 2,049 when New York’s starting bell rings.

The sour tone across global equities stems primarily from Wall Street’s heavy losses on Wednesday, when the S&P 500 tumbled 31 points, the technology and biotech-heavy Nasdaq Composite lost 2.4 per cent — its biggest daily drop in nearly a year — and the CBOE’s Vix index, a volatility measure, jumped 13 per cent.

…The buck’s trade-weighted index, which two weeks ago hit a 12-year high of 100.39, is down 0.5 per cent on the day at 96.46.

Contributing to the greenback’s retreat is strength in the “haven” yen. The Japanese unit is 0.6 per cent firmer at Y118.75, a move that reflects the market’s traditional reaction at times of anxiety.

Gold is another beneficiary of this angst, the bullion adding $12 to $1,207 an ounce, its most expensive in three weeks.

[source]

Posted in Gold News, Gold Views |

Gold higher at 1210.50 (+15.55). Silver 17.19 (+0.258). Dollar lower. Euro higher. Stocks called lower. US 10yr 1.93% (+1 bp).

Posted in Markets |

GDP Growth Estimates Tumble, Again

25-Mar (Wall Street Journal) — Could the U.S. economy be seeing a repeat of last year’s winter contraction? The latest estimates are moving in that direction, though they’re still in positive territory.

Several economists on Wednesday lowered their estimates for first-quarter growth in gross domestic product following a disappointing report on business spending and investment.

Orders for durable goods—products varying from computers to lawn mowers to washing machines designed to last at least three years—declined a seasonally adjusted 1.4% in February from a month earlier, the Commerce Department said. And a key measure of business investment fell for the sixth straight month, suggesting U.S. companies are still cautious about spending amid weak global demand.

Many economists said the report shows weaker-than-expected spending on equipment at the start of the year, a potential drag on economic output.

[source]

Posted in Economy |

Gold Prices Hit Three-Week High on Interest-Rate Expectations

25-Mar (Wall Street Journal) — Gold prices rose to their highest level in three weeks on Wednesday, as weak U.S. data bolstered the argument the Federal Reserve would likely take its time before raising interest rates.

Gold for April delivery, the most actively traded contract, closed up 0.5% at $1,197.00 a troy ounce, the highest settlement since March 4.

Demand for big-ticket manufactured goods sank last month, data from the Commerce Department showed, in a sign that U.S. companies are still cautious about spending amid weak global demand. The numbers offer further evidence of an uneven U.S. economic recovery, lending credence to those who believe the Fed will need to wait longer than previously expected to raise interest rates. That is good news for gold, which struggles to compete with yield-bearing investments when rates rise.

The data “subdues growth expectations and implies further upside for gold,” said Bart Melek, head of commodities strategy at TD Securities. Prices are likely to reach $1,250 an ounce in the second quarter, Mr. Melek said.

[source]

Posted in Gold News, Gold Views |

The Daily Market Report: Gold Pressures Resistance at $1200


25-Mar (USAGOLD) — Gold remains well bid, pressuring the $1200 level, amid rising concerns about the health of the U.S. economy. The deteriorating growth outlook and persistently weak inflation has swung the pendulum on Fed rate hike expectations further out.

This morning it was revealed that durable goods orders tumbled 1.4% in February. That was well below expectations of +0.3%. January’s solid transportation driven gains were also revised significantly lower from +2.8% to +2.0%. Ex-trans in February came in at -0.4% and the January ex-trans number was revised down from +0.3% to -0.7%.

Now bad news like this would typically be viewed as good news for stock investors, lending credence to the notion that the Fed won’t be raising rates any time soon. This time however, stocks are actually treating bad news as bad news, with the DJIA down more than 200 points.

We continue to see a pretty steady flow of clients moving funds out of shares and into gold. The recent volatility in stocks may be indicative of a top. At the same time the Dow was struggling above the 18,000 level, gold is attracting buying interest below $1200. If the yellow metal moves convincingly above that level, the market may find some buy stops that could lead to upside follow-through.

Posted in Daily Market Report, Gold News, Gold Views |

US durable goods orders -1.4% in Feb, well below expectations of +0.3%, vs negative revised +2.0% in Jan (was +2.8%); ex-trans -0.4%.

Posted in Economic Data |

Fed’s Evans Says Low Inflation Makes Rate Rise Too Risky in 2015

(Bloomberg) — Federal Reserve Bank of Chicago President Charles Evans, who votes on policy this year, said inflation remains too low to justify an interest-rate increase in 2015, despite “terrific” progress in reducing U.S. unemployment.

I see no compelling reason for us to be in a hurry to tighten financial conditions until” it’s clear that inflation will reach the Fed’s 2 percent target within one or two years, Evans said in London on Wednesday. “Economic conditions are likely to evolve in a way such that it will be appropriate to hold off on raising short-term rates until 2016.”

[source]

Posted in Central Banks, Monetary Policy |

Gold near 2-1/2 week high on U.S. rate expectations


25-Mar (Reuters) — Gold held near 2-1/2 week highs on Wednesday as upbeat euro zone economic data supported the euro versus the dollar, and as expectations receded that a U.S. interest rate rise is imminent.

The metal’s five-day rally to Tuesday, its longest since January last year, came after Federal Reserve chair Janet Yellen sounded a cautious note last week on the U.S. economy and the pace of any rate hike.

Spot gold was at $1,192.40 an ounce at 1024 GMT, little changed from Tuesday, while U.S. gold futures for April delivery were up 80 cents an ounce at $1,192.20.

“Yellen last week made it clear that the Fed will probably take more time before we see further interest rate hikes. That was clearly supportive for gold, so we weren’t surprised to see prices rising again,” Commerzbank analyst Daniel Briesemann said.

[source]

PG View: Gold is presently engaged in an attempt to regain the $1200 level.

Posted in Gold News, Gold Views |

Gold higher at 1197.54 (+5.83). Silver 17.06 (+0.143). Dollar lower. Euro higher. Stocks called mixed. US 10yr 1.85% (-2 bps).

Posted in Markets |