Malaysia Gold Investment

The gold price dipped $5.06, or 0.3%, to $1,657.89 per ounce Thursday morning despite two worse than expected U.S. economic reports.  The price of gold oscillated around $1,660 in overnight trading and later showed a muted reaction to data on weekly jobless claims and GDP.  Silver dropped in concert with the gold price, by 0.4% to $31.97 per ounce, while the U.S. Dollar Index rose 0.1% to 79.21. One firm that is rather cautious on the prospects for the yellow metal is CPM Group, an independent commodities research and investment banking company.  In its recently published “Gold Yearbook 2012,” the firm argued that the price of gold will not surpass its all-time high in the foreseeable future.  Jeff Christian, Founder and Managing Director of CPM Group, wrote that “We are looking for the (gold) price to stay above $1,500 this year and above $1,400 over the next few years. CPM attributed its stance to a less supportive environment for gold prices. ...

Gold price waned as the boost from Bernanke’s dovish comments the previous day began to fade. Evaporating physical demand also pushed gold lower, dragging down the rest of the complex. The flip-side of this is that the recent decline in gold could see physical buying accelerate. This interest is mainly from South-East Asia as Indian buyers remain largely absent (reportedly 85% of stores are closed) as they enter their 12th day of protest action. A firmer dollar extended the downward trend of Gold price into Asian trading hours, although low volumes kept losses relatively subdued. Still following dollar movements, this morning saw a brief interruption of the downward momentum as a weaker dollar lent some support to the complex. However, the euro was soon on the back foot again, sending gold price lower. We expect choppy trading to keep volatility high as we move into month- and/or quarter-end. The market will be looking at today’s US goods orders data as a hint to the possibility of...

The gold price stabilized near $1,690 per ounce Tuesday morning following its best day since late January.  The price of gold traded in a tight range between roughly $1,685 and $1,695 in overnight trading as financial markets digested yesterday’s broad-based rally in risk assets. Speaking yesterday at the National Association for Business Economics Annual Conference, Bernanke addressed the ongoing challenges facing the U.S. employment market.  The Fed Chairman noted that “further significant improvements in the unemployment rate will likely require a more-rapid expansion of production and demand from consumers and businesses, a process that can be supported by continued accommodative policies.” Bernanke also contended that “cyclical rather than structural factors are likely the primary source of its (unemployment) substantial increase during the recession.”  However, he cautioned that even if structural factors are likely to keep the unemployment rate elev...

The gold price advanced $16.56, or 1.0%, to $1,679.56 per ounce Monday amid weakness in the U.S. dollar and a broad-based rally on Wall Street.  The price of gold held steady near $1,660 in overnight trading, but turned sharply higher at approximately 8am ET.  The catalyst for the rise in the gold price was comments from Federal Reserve Chairman Ben Bernanke, who hinted at further monetary easing in a speech this morning. At the National Association for Business Economics Annual Conference, Bernanke stated that “further significant improvements in the unemployment rate will likely require a more-rapid expansion of production and demand from consumers and businesses, a process that can be supported by continued accommodative policies.” Simon Weeks, head of precious metals at Scotia Mocatta, attributed the gold price rally to “Bernanke’s comments, which people have taken to mean that further funding might be required.  I think people have taken that to mean...

Gold Price surprised everyone last Friday by jumping $20 to close $1,662.30. Short covering before the weekend could account for that, but gold also closed up 0.4% this week, even after some terrible days. The gold price has caught on an internal support line, but if it breaks down through $1,627, it will hit the skids. By no means out of danger yet. Gold fell off, but ended the week higher or about even. Stocks proved unable to move higher, and fell back. Dollar still hanging on by fingernails .

The gold price climbed $11.90, or 0.7%, to $1,654.89 per ounce on Friday as the commodities complex rebounded from yesterday’s losses.  The price of gold hovered near unchanged at $1,645 in overnight trading, but turned higher amid U.S. dollar weakness this morning.  Silver advanced alongside the gold price, by $0.31, or 1.0%, to $31.78 per ounce. Despite the recent gold price weakness, one noteworthy and long-time gold bull reiterated his positive stance on the yellow metal.  Philip Klapwijk, Global Head of metals analytics at Thomson Reuters GRMS – the world’s leading metals consultancy firm – urged investors to use the recent sell-off to accumulate positions in gold. Although the price of gold could dip below $1,600 in the short-term, Klapwijk asserted, he sees it rebounding to $2,000 per ounce either in late 2012 or early 2013.  Klapwijk based his bullish gold price view on expectations that real interest rates will remain negative for the foresee...

After trading sideways for the better part of yesterday and overnight, gold has come under strong selling pressure this morning, weighed down by a stronger dollar and an apparent lack of interest from investors. Physical demand is fairly robust at these price levels, although support is not what it used to be, especially with Indian buying still relatively lacklustre as participants contemplate how to cope with the higher import duties. With physical Gold demand not at full strength and waning investor enthusiasm, the potential for further downside in gold remains exposed. This potential downside could be heightened by US data flow and scheduled comments from Fed representatives (Tarullo and Bernanke) if either event should raise concerns over the Fed’s commitment to extended monetary accommodation.

The gold price held firm near $1,655 per ounce on Wednesday as the gold price continued to consolidate in morning trading.  The price of gold, as well as the U.S. Dollar Index, oscillated between gains and losses in overnight trading.  Silver moved modestly higher, by 0.3% to $32.30 per ounce. In the latest edition of his Gold Monitor , Murenbeeld wrote that “The case for some gold bearishness is fairly compelling at the moment.  Europe is in recession and with the prospect of no further LTRO, fiscal retrenchment and deflationary domestic pressures are front and center…China is slowing, and while no one can know exactly how rapidly, there is growing speculation that the slowdown is turning into a ‘harder’ landing than government officials have suggested… The US dollar is well bid, not least because there is renewed optimism over the US economy.” However, despite the near-term bearish factors, Murenbeeld contended that the longer-term outlook for the price ...

The gold price fell $10.57, or 0.6%, to $1,653.05 per ounce on Tuesday amid broad-based weakness on Wall Street.  Silver fared worse than the price of gold this morning, dropping $0.50, or 1.5%, to $32.45 per ounce.  U.S. equity markets moved lower as well, with the S&P 500 Index sliding 0.5% to 1,396.50.  Analysts attributed the sell-off to concerns over a slowdown in Chinese economic growth after the nation increased fuel prices by the most in two years. Despite the recent weakness in gold price, the longer-term outlook for gold and silver remains bright, according to BNP Paribas. In a note to clients published this morning, gold price strategist Anne-Laure Tremblay wrote that “The correction in gold prices, was initially triggered by Bernanke’s semi-annual testimony to Congress, in which he made no specific references to QE3. Sentiment towards gold was hit by more elusive timing of QE and the confirmation of a more positive economic outlook in the l...

The gold price held near $1,655 per ounce Monday morning amidst a relatively quiet opening on Wall Street.  The price of gold climbed to as high as $1,664.89 in overnight trading, but relinquished its modest gains as the U.S. dollar turned fractionally higher.  Silver stabilized near unchanged at $32.56 per ounce alongside the gold price. Gold has recovered from Friday’s bout of weakness, which was mostly as a result of an announcement that India would be raising the import duties on the metal in a bid to curb the softness in their current account. Perhaps the lower-than-expected US inflation figures on last Friday afternoon helped to provide some support into the weekend, as it kept hopes alive of further quantitative easing. Of course, support from the physical market was generous, as the relatively low prices as well as some opportunistic gold buying before the increase in Indian import duties takes effect. Physical market activity however has slumped  now, with b...

The Gold price shuffled down $3.60 to $1,655.50 last week closing. Now that doesn't look like much of a performance, but the sellers attacked about the time New York opened on last Friday and drove gold clean down to $1,640. But gold climbed right back to $1,664.70, leaving a clean V-reversal behind. Problem remains that gold did not exceed last Thursday high at $1,665.60 and indeed gave a little ground. Thus $1,640 shapes up as strong support, but $1,665 as tough resistance, and like that little steel sphere in a pinball machine, gold seems trapped. One way or the other this will break this week.

The gold price moved lower Friday morning, falling $4.85, or 0.3%, to $1,653.55 per ounce.  The price of gold traded down to $1,640.32 in overnight trading but pared its losses as the U.S. dollar extended its decline against a basket of the world’s leading currencies.  In contrast to the gold price, silver advanced modestly, by 0.3% to $32.59 per ounce.  The gold price showed a muted reaction to the latest data on U.S. inflation, as the Consumer Price Index (CPI) for February rose to a ten-month high of 0.4%. The gold price received a boost yesterday from Jan Hatzius, chief U.S. economist at Goldman Sachs.  In a report to clients, Hatzius argued that despite the slightly more hawkish tone to this past week’s FOMC statement, he expects the Federal Reserve to launch a third round of quantitative easing (QE3) by June of this year. “It has definitely become a closer call, but we still expect another asset purchase program that involves purchases of both mo...

The gold price stabilized Thursday morning near $1,645 per ounce following several days of weakness.  The price of gold showed a muted reaction to the latest weekly U.S. jobless claims data, which at 351,000 reached a four-year low.  Silver traded near unchanged as well, at $32.21 per ounce, while the U.S. Dollar Index dipped 0.3% to 80.376 against a basket of foreign currencies.  U.S. equity markets held near the flatline, as the S&P 500 Index dipped 0.1% to 1,393.40. Several analysts have attributed the recent gold price sell-off to items both included and excluded from the Federal Reserve’s monetary policy statement on Tuesday.  The slightly more hawkish tone of the statement, coupled with the Fed’s decision to not launch a third round of quantitative easing (QE3), were the two primary catalysts for the yellow metal’s decline this week.  Barclays Capital wrote in a note to clients that the U.S. economy would “either need to suddenly slow or ...

Gold price broke $1,680 in European trading, and suddenly looked like a leper in a Turkish bath: no friends at all. Nobody wanted to know gold. It traded down to $1,640 support, and closed Comex at $1,642.50, but in the aftermarket stretched down to $1,634.72. That brought gold's friends out of the shadows and set them to buying -- or at least, covering their short positions. Tomorrow the battle will take place at $1,635. If gold can turn back its attackers there, it can hold on. Otherwise, the break through the 200 DMA today ($1,679) after gold is already below its 50 DMA (1,701) and 150 Dma (1,715.50) argues for a trip to $1,605.

The gold price came under heavy selling pressure Wednesday morning, falling $27.31, or 1.6%, to $1,643.63 per ounce.  Coupled with the prior two days of losses, the price of gold extended its weekly decline to 2.4% and reached its lowest level since January 18.  Silver declined in concert with the gold price, although by a smaller amount of 1.2% to $32.87 per ounce.  The U.S. Dollar Index continued to climb, reaching its highest level since mid-January as well. The gold price began the day by inching lower after the latest U.S. economic report showed a further improvement in the data.  Retail sales for February rose by 1.1%, the largest increase in five months.  Credit Suisse economist Jonathan Basile wrote in a note to clients that “This is a pleasant surprise on the overall picture for the economy. For the Fed, it’s steady as she goes. They will be encouraged, but there is still a long way to go.” The encouraging retail sales data confirmed th...

Gold futures extended their losses in electronic trading following today’s Fed meeting. COMEX gold for April delivery settled down by $5.60, or 0.3%, at $1,694.20 per ounce. The FOMC statement revealed that the Ben Bernanke-led Fed intends to maintain its set of “highly accommodative” monetary policies but will not launch a third round of quantitative easing (QE3). After the release of the Fed announcement, the Gold price headed further south, reaching $1,667.40 per ounce as of 3:28pm ET. Edel Tully, a precious metals analyst with UBS, wrote in a note to clients that the move lower in gold “was entirely on the back of longs getting out, reversing all of the gains since the Jan. 25 FOMC meeting.” Tully – the most accurate gold price predictor in the 2011 London Bullion Market Association Forecast – added “That prices have been more resilient, falling only 7% despite a 23% decline in positioning, is encouraging, considering that the most recent selloff of similar magnitude –...

The gold price dropped $14.79, or 0.9%, to $1,697.98 per ounce Monday as the yellow metal gave back a portion of its recent gains.  The price of gold advanced in each of the past three trading days, but turned lower this morning alongside other precious metals.  Silver prices retreated as well, by $0.49, or 1.4%, to $33.74 per ounce.  Weakness in the price of gold and silver came despite a slight decline in the U.S. dollar against a composite of foreign currencies. Julia Coronado, chief economist for North America at BNP Paribas, wrote in a note to clients that “The labor market has found its legs in the last few months, and it looks like there’s enough of a broad base that the momentum can be sustained.” While the better than expected jobs data indicates that the U.S. economy is continuing its modest recovery, Coronado asserted that it is unlikely to alter the Federal Reserve’s stance on monetary policy.  “This leaves the Fed in a bit of limbo as it’...

Last 2 week the 31 MT of gold takedown gold price about USD100 per ounce all go to China and India. US had sale they gold to get liquidity and to speculate paper gold but China and India taking this low gold price to accumulate more gold.  Come to physical gold, the price still high. 916 gold still at RM190 per gram and 999 gold still at RM200. This sale move done by US really show that US is not getting better just that they need to support the paper money market and share market. Soon US physical gold leave will drop low once this US stop sale out gold, gold price will make new high.

We focus on the US Taylor Rule and tomorrow’s US employment data. The market expects the US unemployment rate to hold steady at 8.3%. (The unemployment rate is down from 10% in Oct 09.) The US Taylor Rule, for the first time since Feb 09, now signals that the Fund funds rate may be too low. The Taylor Rule provides an indication of where the Fed funds rate should be, given US unemployment and inflation. Until December last year, the Taylor Rule signalled that the Fed funds rate should actually have been negative. However, given that nominal interest rates can’t be negative, the Fed embarked on QE. However, according to the Taylor Rule, the incentive for further QE has disappeared — for now. Whether this is a bearish signal for precious metals in general and gold specifically depends on how the Fed reacts relative to what the Taylor Rule suggests. Should the Fed start raising rates, it could mean a rise in real interest rates, which would be negative for investment demand. However...

The gold price advanced $10.86, or 0.6%, to $1,696.05 per ounce Thursday morning amid U.S. dollar weakness and a disappointing report on the U.S. labor market.  The price of gold climbed to as high as $1,704 in overnight trading while the U.S. Dollar Index slid 0.4% to 79.370.  Weekly jobless claims came in at 362,000 – above the 352,000 consensus estimate among economists.  U.S. equity markets shrugged off the data, however, as the Dow Jones Industrial Average (DJIA) rose 0.6% to 12,907.90. Yesterday’s gold price strength was driven by a report from the Wall Street Journal that the Federal Reserve is contemplating alternative methods of monetary policy easing.  As opposed to its traditional quantitative easing (QE) measures, the WSJ reported that “The Fed could print money to buy long-term bonds, but restrict how investors and banks use that money by employing new market tools they have designed to better manage cash sloshing around in the financial s...

The gold price hovered near $1,675 per ounce Wednesday morning after the latest report on the U.S. labor market largely met expectations.  The price of gold showed a muted reaction to the February ADP Employment report, which at 216,000 was fractionally above the 215,000 consensus estimate among economists.  Silver stabilized alongside the gold price after the jobs data was released, near $32.95 per ounce. Jonathan Jossen, a gold options trader at the COMEX, stated in comments to Reuters that “People who are long gold are getting out. They don’t like what’s going on with Greece and the stock market is decisively lower. It’s a matter of raising money.” Analysts at Commerzbank wrote in a note to clients that “There is still a correlation between gold and risky assets such as equities and industrial commodities.  This is probably due to investors with a short-term horizon selling long positions on the futures market.” At its current level, the gold price is no...

With gold falling from just below $1,790 to as low as $1,689 at one stage late yesterday, we look at the behaviour of the physical market over the past 4 months to determine what the potential behaviour might be. More specifically, we look at our Standard Bank Gold Physical Flow Index (GPFI). Our GPFI tracks actual physical gold flows that Standard Bank sees — much of these flows are into Asia and India. An index value below zero indicates the physical market is a net seller, while a value above zero indicates the physical market is a net buyer. The greater the index value (in absolute terms), the stronger the buying/selling forces. The behaviour of the physical market does indicate that this segment is price-sensitive. The general trend is fairly consistent: when the gold price moves lower, physical demand rises. When the gold price rises, physical demand falls away. Back in November, when seasonal demand was strong, we saw physical demand push higher after gold declined from $1,80...

The gold price held near $1,700 per ounce Monday morning as financial markets digested a lower Chinese economic growth forecast.  The price of gold traded in a wide range between $1,695 and $1,720 in overnight trading after China reduced its growth target for 2012 to 7.5% from 8.0%.  The U.S. dollar stabilized near unchanged against a basket of foreign currencies, while equity markets turned modestly lower in morning trading. Last week’s entire decline in the gold price occurred on Wednesday, when the yellow metal plummeted $92.00 following congressional testimony from Fed Chairman Ben Bernanke.  The tone of Bernanke’s remarks was less dovish than expected, and he indicated that the Fed does not intend to launch a third round of quantitative easing (QE3) in the near future. Dennis Gartman – author of the widely-read Gartman Letter – commented that “When Bernanke didn’t mention the possibility of another round of monetization, that was enough to take the ...

Gold fell some 90 dollars in total, breaking a few one-day records in the process, which the CNBC/ Bloomberg and CNN took pride in reporting. Rumor has it that some 31 tons of gold were sold on the Chicago Mercantile exchange. Shortly thereafter, debates over why gold fell and not stocks or bonds became the topic du jour on most financial talk shows. To that, we would suggest that in the absence of additional money printing AND a rotational benefit from stock/bond markets, a funding deficit was, by default, produced in the metals. That is to say, once again the Bernenk was successful in convincing the markets that the U.S. is recovering nicely without inflation – essentially praising themselves for a job well done. However, taking into account the economic issues at hand, we suspect Bernanke and CNBC will not be bragging for much longer. We also might add that as Americans continue to find reasons to sell gold, others continue to accumulate it at their expense. ETF holdi...

The Gold price has fallen back below its crucial 150 DMA (now $1,714.56) with its $1,708.80 close today. Down beneath the 40 DMA at $1,685.45 ought to act as a safety net should it fall further. Weak as today was, odds remain with gold since it showed itself so strong this week. However, a close below $1,696 shatters that. If this plays out as corrections usually do, gold will climb to about $1,750, then plunge once again, either to $1,696 or a little lower. That will take 3 weeks or more to play out.,

The gold price rose higher by $10.90, or 0.6%, at $1,722.20 per ounce.  The price of gold rebounded alongside the broader stock and commodity markets despite stability in the U.S. dollar.  The SPDR Gold Trust (GLD), a proxy for the gold price and the world’s largest gold ETF, climbed $1.91, or 1.2%, to $166.20 per share. Yesterday marked the most noteworthy day for the gold price in several months, as the Gold prices plummeted over $100 per ounce on an intra-day basis.  In early morning trading the spot price of gold held steady near $1,785, but turned lower upon the release of Fed Chairman Ben Bernanke’s testimony to Congress on the state of the economy. The testimony indicated that given the improvement in the U.S. labor and housing markets, the Fed does not intend to launch a third round of quantitative easing (QE3) in the near future.  Jan Hatzius, chief U.S. economist at Goldman Sachs characterized Bernanke’s prepared statement as offering “no clea...

The gold price continued to tumble in late morning trading, with the April contract plummeting as much as $80.00, or 4.5%, to $1,708.40 per ounce. The decline coincided with a rally in the U.S. dollar after Fed Chairman Ben Bernanke’s testimony to Congress showed that the central bank is not close to embarking on further monetary easing (QE3). Today’s drop in gold futures marked the gold worst day since September 23, 2011 – when it tumbled 4.7%. Commenting on the sell-off, CIBC World Markets wrote in a note to clients that “Gold – looks like a large seller of gold in the market. a 10k contract traded, down ticked the price by $40/oz. roughly 200k contracts trade per day, but unusual to see such a large single trade. not likely due to contract expiry either. That transaction represents 1mln oz of gold.”