Malaysia Gold Investment

Gold: Abnormal Behavior By Jim Rogers

Gold bounced back above its 200d MA this morning after China returned to the market after a long weekend. We still believe that rallies in the gold price are likely to fade as US interest rates move higher. Support for the metal that emanates from geo- political risk around Russia and the Ukraine is very difficult to trade ,given that the price action is event and news flow driven. As a result we also believe that the influence of this event on the gold price is also likely to be transitory. We rather focus on underlying physical demand developments for the metal in Asia and developments in US interest rate. Gold support is at its 200d MA at $1,299 and $1,291. Resistance is at $1,316 and $1,320. As far as Chinese demand is concerned, we note that demand has improved marginally in the past two weeks, with the SGE premium shifting from being well in the negative territory into a marginally positive territory around the $0.50 level. This does signal that demand from especially China...

Gold for June delivery fell $5.40, to settle at $1,288.50 an ounce on the Comex division of the New York Mercantile Exchange. That was the lowest settlement for a most -  ctive contract since April 3. May silver also took a hit, losing nearly 25 cents to $19.35 an ounce.  Gold prices had brea ched the 200 - day moving average around $1,299 right before the long weekend, which may have prompted some technical - based selling.The 100 - day moving average around $1277.0 could be the next target, and a close under that level could send gold even lower. But the producer- merchant segment of Comex participants are now showing their lowest short position in eight years, which indicates that selling could dry up soon.  Traders kept watch on the Ukraine - Russia conflict. The international organization tasked with helping to defuse the crisis intends to work on bolstering its ranks with more monitors...

For the gold price, two outcomes are possible. First is a return to or near the April low ($1,277.40). Second is a drop to a lower low, $1,240 - $1,260. Yet a third possible outcome is that the June and December lows were not a double bottom and one further drop may come. I account that the least likely, and look for a low here by the end of the week, but I'm no more'n a nacheral born durnd fool from Tennessee, so what do I know?   You'd think that an institution charged with promoting the gold industry would produce reports that at least cast the best light on gold's prospects. You'd think wrong, if you're thinking about the World Gold Council. They've been negative on gold for, oh, the last 14 years or so. Today they issued a report that contained a nugget about Chinese business using physical gold as collateral for bank credit ($40 bn worth) but they managed to tease a gloomy forecast even out of this inventive monetary use. That and bad ...

Heightened geopolitical tensions surrounding Ukraine, combined with technically oriented buying, pushed gold futures to their highest close since late October on Monday. Much of the buying was described as a flight to safety, particularly as the equity market tumbled, with short covering adding more fuel to gold’s move. “Obviously, with all of the turmoil in Crimea, gold has basically reasserted its role as a safe-haven play,” said Jim Comiskey, senior account executive with Archer Financial Services. Russian troops reportedly entered Crimea after the previous pro-Russian government of Ukraine fell. CNN quoted Ukraine’s defense ministry as saying that the Russian commander of the Black Sea Fleet went aboard a blocked Ukrainian warship in Crimea’s Sevastopol Harbor and issued a threat to surrender or else face an attack. Russia’s parliament is also reportedly considering the annexation of ...

Mama Yellen spake to the Senate Banking Committee, and her remarks are the reason cited by the media for stocks rise today. As usual, I couldn't tease anything so optimistic out of her remarks, but observed she has adopted the Greenspan Technique of saying nothing in a lot of words. But if stocks were willing to rise on a speech like that, they were rising anyway. Coming week probably put the cap on gold prices for a little while. Stocks are laboring to rise, but not convincingly. Of course, I might have it all wrong and this might prove no more than a short breath-catcher before the gold price tries again to break through $1,360 resistance.

The Gold Price very nearly broke upward through its since-August-2013 downtrend line this week, the chart shows a double bottom, other indicators are floating upward, and it has broken through its 20 week moving average. The daily chart is just too beautiful to miss. Look here, The gold price hath climbed straight up from an upside-down head and shoulders up through the neckline, broken through old resistance from $1,290 - $1,300, and today closed above its 200 DMA for the first time since February a year ago. Only problem with this picture is that it can leave us so giddy that we overlook that stochastic indicator that is flashing a warning. I don't think this rally has ended, but around $1,350 - $1,360 it will likely begin losing altitude. This rally has run since 31 December 2013.

After yesterday’s rally in the gold price, gold is fading. As mentioned yesterday, physical demand has slowed over the past fewdays, which could drain some support for gold. In fact, with the rally in the gold price yesterday towards $1,340, gold demandfrom China seems to have eased already. This is evident in the SGE premium, which overnight dropped from around $10/oz yesterday to $7/oz this morning. This premium is down from almost $20/oz on 15 October when gold was trading below $1,290. As a result, from a tactical perspective, we believe that price rallies should be sold into on approach of $1,450. We maintain it will be difficult for gold to sustain a rally in an environment where investment demand via the ETFs is weak, and physical demand in Asia falls away on price rallies. That said , we would expect physical demand to pick up below $1,300, as it did around 15 October. Furthermore, US bond yields have decline d sharply since yesterday, with the 10-year government bond tradi...

Gold prices stabilized, cutting back on earlier losses as the dollar dropped against other major currencies, but continuing in a slight range before the minutes of the U.S. Federal Reserve’s July meeting on Wednesday. News from the Fed is carefully watched for signs around the outlook for U.S. monetary policy, a key of changing gold prices, as rumor around mounts that the bank could taper its $85 billion monthly bond-buying program as early as September. Spot gold was at $1,366.14 an ounce at 1034 GMT, slightly changed from $1,365.48 late on Monday, whereas U.S. December gold futures delivery increased 50 cents at $1,366.20 an ounce. The dollar index dropped 0.3% and world shares also fell to their lowest in more than a month on Tuesday on hesitation ahead of the release of the Fed minutes on Wednesday. Peter Fertig, a consultant at Quantitative Commodity Research said “I don’t think the minutes will provide a clear signal about the September taper. ...

Hong Kong’s net gold exports in April were 80.1 tons it increased to 108.8 tons in May. Gold exports hit a record high of 136.2 tons in March, the Hong Kong Census and Statistics Department said. Analysts said it was the second strongest monthly hit on record, they added, lower prices appealed mainland buyers. Gold lost more than 26 percent of its value up to now this year, encouraging a rush for gold bars, coins and jewelry in Asia. Hong Kong’s gold exports came to 413.4 tons for the first 5 months this year, twice of that from the year-ago period. China’s gold imports of 2012 reached 832.2 tons. However, analysts said that due to heavy buying through the first 5 months of the year, they don’t think that buying on this scale will continue till the end of the year. Buyers are as well positioning off purchases in expectation of a further decrease in gold prices.

Gold price all over the world, watched a global decline, but the main fear came from the Central bank of japan. In which the Japanese bank go stronger on its quantitative easing program ( printing more money ) while it is neglecting its gold and foreign exchange cover. It was the main event today affected gold price and caused its decline today. The central banks of Japan decided today to go on its quantitative easing program, Neglecting its gold reserver. The move of Japan today, said to the world that, Gold reserver is not that important. the issue which increased the fears of investors from Gold market. As a normal result for the move of japan we watched a decline in Gold price in the global market, Influenced by the japanese move today decreased the demand on gold. From the point of view of the bank of Japan they said that “If you look at the chart, recent rallies over the last couple months have been selling opportunities,” als...

The price of gold shot up today as the precious metal hit a new two week high. Now priced at around $1,416.15 an ounce, gold seems to be stabilizing after it has only slightly increased in the past few days. The US dollar also declined today helping the precious metal gain traction.  This comes after news that the jobless claims in the United States has increased following a patch of steady decline.  The Labor Department reported that almost 10,000 people applied for unemployment in the past week alone increasing it to about 354,000 people.

Usually when the price of gold declines, the U.S. dollar becomes stronger. This was the case today. As the U.S. dollar dipped, the price of gold slightly increased giving hope to downtrodden investors. Currently, gold is $1,388.06 an ounce.  It was also a relatively good day for mining stocks and ETFS. Although numerous companies saw their stock increased it was only by a few cents. The biggest riser was Randgold Gold Mining Co. Ltd that increase $1.57 while Agnio-Eagle Mines Limited saw their stock grow nearly 2%. When it came to ETFS, Physical Asian Gold was again the only ETF that did show a profit. The ETF was down almost 1.3%.

Deciding when, how, and where to invest isn’t easy. If it were, more people would do it and everyone would be rich. Investing is tricky and there’s an amount of risk that goes into investing whether it’s stocks, gold, or a budding company.  When it comes to gold, anything could happen. Many analysts are confident that this is the end for gold. For others like Paul Schatz, the president of Heritage Capital, well he still thinks gold has a little fight left in it. In a note to clients he wrote, “I do not believe there is enough evidence at this time to conclude that the secular bull market in gold has ended.” In fact he thinks people are too negative when it comes to gold prices. His advice? “If you give it a little room I think the next big move in gold is to the upside.”  Buying, keeping, and selling stock is a private matter. People like Schatz can give you suggestions, but you ultimately must make the decision. With such a volatile market, chances are we’...

If anything gold prices have been volatile over the past few months and today isn’t any different. Gold prices dipped slightly today as investors were about to breathe a sigh of relief that the worse was over. Due to a small increase in the U.S. dollar, gold prices are down $9.30 to $1,464.50 an ounce. In related news, Korea slashed its interest rates earlier his morning while the Euro Zone economy is weak and could get weaker in the coming months. China also reported that  the price index have dropped which usually indicates the production of gold in China has been slowing down. These are not good signs when it comes to gold prices, and at his point investors can only hope for the best. In mining stocks, most of the stocks were down anywhere from one cent to 43 cents while Franco Nev Corp’s stock rose the most and that was only by eight cents. ETFS stocks fared worse with Physical Asian Gold down 0.73% and Gold Miners ETF Market Vectors down 0.85%.

The price of gold couldn’t repeatedly increase forever which is why this morning it stopped. Prices of gold declined to $1,461.70 an ounce. The American dollar as well as the Australian dollar were weaker this morning, helping to keep the price of gold stable. Physical gold still remains in good shape especially in Asia. In fact, the purchase of physical gold from China doubled reaching an all-time high in March. In total investors bought 223,519 kilograms of gold compared to just 97,106 kilograms in February. As for April, trader Qu Mingyu of Bank of China stated, “Judging from the explosive growth of trading volume on the Shanghai Gold Exchange in the second half of April, and anecdotes that many jewelry shops are sold out throughout the country, imports might be even more substantial in April.” When it comes to gold stocks, Harmony Gold Mining Co. Ltd is up nearly 9.5% to $4.73 while Allied Nevada Gold Corp. is down 2.1%. In ETFs, many stocks had a modest gain th...

Should you buy gold or not? That’s the question and everyone seems to have an answer. Unfortunately they’re never the same. Some analysts fear the low prices of Gold that we’ve seen in the past month will surely signal another recession. Others say that it was just a fluke and justify it by the fact that the price of gold is improving. Slowly yes, but still improving. Gold prices are currently up $22.00 to $1,475.60 an ounce. Considering it was well below $1,400 an ounce this time two weeks ago, many investors are breathing a sign of relief as it’s steadily rising. If this trend continues, gold will be over $1,500 an ounce in no time. What investors need to understand is that like with anything, gold will have their good days and bad days. Stop-losses will occur and profits will be made. But no way is it a “sure thing” that if you invest in gold you will come out richer than you ever thought imaginable. If you come into the gold business expecting it to be easy, tha...

Gold prices are once again evening out to $1,429.13 an ounce. Investors are swooping in to buy gold and significantly lower prices to make a bundle once the prices of gold evens out out. Although this significantly helps investors who are buying today, it doesn’t help those investors who bought at gold’s peak price. Instead, they are being “short squeezed.” This occurs when investors are forced to buy back gold at significantly higher prices, thus being squeezed out of the market because they took such a heavy loss when the prices plunged. Gold prices change every day, sometimes significantly and others times minuscule. What was once a steady upward trend, is now hit or miss. In turn, this causes some investors a great deal of money, while other investors are making out like bandits.

The gold price gained ground Tuesday, rising $7.00 to $1,613 per ounce despite strength in the U.S. dollar against its foreign counterparts.  Gains in the price of gold came as the U.S. dollar traded to its highest level versus the euro in 2013.  Gold prices continued their rally on the back of news that Cypriot President Anastasiades agreed to support a proposed tax on bank deposits of $7.5 billion.  Despite reports that Cypriot legislators were backtracking on the plan, the mere possibility of such a tax rattled markets. CIBC World Markets noted that Cypriot authorities were working “to renegotiate the terms of a €10B bailout, attempting to scrap its levy on small account holders and instead seizing more from larger depositors and businesses.”  CIBC’s research team highlighted “the large stake Russia has as a major creditor to Cyprus and will likely be involved in an alternative solution.”  Instability with respect to the banking system in Euro...

Gold had a torrid time last week, closing Friday at $1,610/oz, down $57/oz for the week. Much of this was owing to a market anxious about the lack of support from Asia due to the Lunar New Year celebrations. This concern was understandable since, as we have said before, a key point of support for the gold price in previous weeks has been unusually strong physical demand, mostly out of Asia. With this support absent, downside for gold was been opened up. However, we do foresee a recovery and maintain our preference for a strategic long position in gold, targeting an average price of $1,720 this year. This morning though, we have already seen some upside as Asian participants return.