Gold Should Rally On Muted Fed Rate Hikes – BAML
Commodity analysts from Bank of American Merrill Lynch reiterate in a report Monday their call that gold will end the year around $1,300 an ounce. The biggest influence for the yellow metal will be the U.S. dollar and global interest rates. The Federal Reserve is the only major central bank in a position to raise rates, but there is some concerns what impact a strong U.S. dollar will have on the economy and equity markets. “We believe the Fed does not live in a vacuum and is not able to run a monetary policy that is completely independent from non-US monetary authorities. As such, we see a risk that rate hikes will only come through at a muted pace, which in turn would help gold,” they say. The analysts also note that there is a risk of coordinated efforts from central banks as they use foreign exchange markets as a monetary policy tool. They say there is a risk that central banks could create a Plaza Accord 2.0. The original Plaza Accord was made in 1985 between France, West Germany, Japan, and the UK to depreciate the U.S. dollar against those respective currencies. “While the macro-economic environment has been slightly different, it is worth remembering that gold rallied in the wake of the Plaza Accord,” they say.
Specs Increase Short Bets, Despite Gold’s Rally – CFTC
(Kitco News) – Portfolio managers continued to increase their short bets on gold, despite a five-day rally for the yellow metal, according to the latest trade data from the Commodity Futures Trading Commission (CFTC).
Read moreRandgold Replenishes Reserves, Sees Growth Opportunities In Current Market
Randgold Resources Ltd. (NASDAQ:GOLD)(LSE:RRS) added to its attributable reserves in 2014, recording a 0.8% increase to 15.2 million ounces as resources decreased 3% to 27.8 million ounces.
Read moreGold Retreats From Resistance, Stuck In Large Range
March 30 —Gold prices are weaker in early trading action Monday as the market retreats from a key resistance zone around $1,220-$1,223 per ounce, basis June Comex futures. The gold market’s inability to pierce the $1,223.70 high from March 2 last week is a near term bearish signal and leaves the metal vulnerable to additional weakness. Overall, however, on a multi-month basis, gold prices continue to trade within a large neutral range.
Gold Lower as U.S. Dollar Index, World Stock Markets Rally
Gold prices are lower in early U.S. trading Monday, pressured by solid gains in the U.S. dollar index and by rallies in the competing asset class, the equities markets.
Read moreThe 6PM Recap With Gary Wagner: Gold and Other Investments Silent
What is there to say when equities are struggling to find direction, oil is down, the U.S. dollar is flat, U.S. Treasury yields are down on the 10-year, and it’s Friday?
Most Kitco Readers Predicted Gold Lackluster End To Q1 – Survey
(Kitco News) – According to a three-month survey, most Kitco readers were correct in predicting gold’s range by the end of the first quarter, closing the book on a relatively volatile three months.
‘Hesitant’ Gold Market To Be Dominated By Month and Quarter End Flows
(Kitco News) – Gold is ending the Friday session down from recent highs and with both month and quarter ending next week, some analysts are expecting prices could trade lower in a “hesitant” marketplace and shortened trading week.
So The Numbers Are In
The U.S. economy ended 2014 slightly weaker than economists were expecting, according to the final GDP report which came out earlier today. Friday, the Department of Commerce said fourth-quarter GDP rose 2.2% on a seasonally adjusted basis, unchanged …
Read moreGold Lower On Lack Of Safe-Haven Bid, But Remain Sensitive To Geopolitics – HSBC
Geopolitical tensions in the Middle East are not attracting much attention Friday, causing gold prices to drop from a lack of safe-haven flows, and analysts at HSBC say they are not surprised that prices have come back down below $1,200 an ounce. “Gold historically rallies during bouts of rising geopolitical tensions but these gains tend to be very fast moving and can be easily given back once the market shifts its focus away from the issues. However, for the time being, gold is likely to remain sensitive to Middle East developments, in our view,” they say.
