Gold Solidly Up, Hits 5.5-Mo. High, on Safe-Haven Ahead of Big Event Week
More safe-haven demand and chart-based buying propelled the gold market to a 5.5-month high Tuesday. This week is an extra important one for the market place and many traders and investors are anxious. The coming days will see critical fundamental news…
Read moreLess Pie To Share, Richest 1% Take Most Of It – Oxfam
Ahead of the Davos 2015 World Economic Forum Annual Meeting, one international foundation aimed at eliminating poverty said the wealthy elite will keep getting a bigger piece of the pie unless something is done.
Read moreCapital Economics: IMF’s Lower Forecasts Reflect Previous Over-Optimism, Not Pessimism
Although UK-based research firm Capital Economics does not entirely agree with some of the International Monetary Fund’s latest forecasts, they say that the recent downgrades made by the fund largely reflect previous “over-optimism” rather than pessimism, and their forecasts still remain too positive. “Although we agree with the IMF that the collapse in oil prices is a net positive for world GDP, its forecasts for global growth still look too optimistic,” global economist for Capital Economics Michael Pearce says. The IMF released its latest quarterly update of global economic forecasts Tuesday, downgrading its global growth expectations to 3.5% in 2015, from 3.8%. “The IMF lowered its growth forecasts for most countries, but in many cases these downgrades did not go far enough,” Pearce says in the report. Looking closer at Europe, he says they think the IMF is too confident about the risk of deflation in the region. “The IMF expects inflation in advanced economies to average 1% this year. In contrast, we think it will be close to zero,” he says. The IMF also increased its growth forecast for the U.S. to 3.6% this year, as a result of lower oil prices and increased domestic demand. “While we agree that the dramatic fall in oil prices will provide a big boost to the U.S. economy, other factors, including the stronger dollar and slightly higher interest rates, suggest that growth in the U.S. may not be quite as spectacular as the IMF suspects,” Pearce says. “Our view is that world GDP is likely to expand by just over 3% this year and next.”
Germany Makes Significant Progress Repatriating Its Gold
(Kitco News) – Germany continued to repatriate gold in 2014, moving a total of 120 tonnes from the Banque de France and New York Federal Reserve, the Deutsche Bundesbank said on Monday.
Read moreOyu Tolgoi Full Potential Not Unlocked Until Agreement Reached With Mongolian Government – CIBC
Turquoise Hill Resources’ (TSX:TRQ)(NYSE:TRQ) Oyu Tolgoi mine, located in Mongolia, has the potential to be a world class mine; but de-risking is still necessary as the company and the Mongolian government need to come to an agreement.
Gold Bulls Are In Charge Of Trend, Bottom Pattern Seen
(Kitco News) – Gold prices rocketed to their highest level in five months on Tuesday, supported by continuing safe-haven demand for the yellow metal following last week’s surprise decision by the Swiss National Bank to abandon its currency peg.
Read moreGold Up, at 5.5-Mo. High, on Safe Haven Demand Ahead of Critical Market Events
(Kitco News) – Safe-haven demand and chart-based buying are features that pushed the gold market to a 5.5-month high Tuesday.
Read moreBarclays Not So Bearish On Palladium
Despite a bearish outlook on gold prices, Barclays says the underlying factors for palladium may present an opportunity for investors. “Disinvestment and concerns over China have scope to weigh on palladium in the near term while safe-haven buying could push gold higher; however, we believe the underlying fundamentals look attractive for palladium and would view lows as a buying opportunity while gold is likely to lose steam,” the bank says in their Metals Market Outlook report. They add that they expect gold prices in Q1 to be the highest for the metal this year, adding that current gold prices are “approaching toppy levels, in our view.” However, their outlook on palladium remains optimistic. “Palladium, on the other hand, has fallen below $770/oz and, in our view, represents a healthy buying opportunity.”
Barclays Not So Bearish On Palladium
Despite a long-term bearish outlook on gold prices, Barclays says the underlying factors for palladium may present an opportunity for investors. “Disinvestment and concerns over China have scope to weigh on palladium in the near term while safe-haven buying could push gold higher; however, we believe the underlying fundamentals look attractive for palladium and would view lows as a buying opportunity while gold is likely to lose steam,” the bank says in their Metals Market Outlook report. They add that they expect gold prices in the first quarter of 2015 to be the highest for the metal this year, adding that current gold prices are “approaching toppy levels, in our view.” However, their outlook on palladium remains optimistic. “Palladium, on the other hand, has fallen below $770/oz and, in our view, represents a healthy buying opportunity.”
Turquoise Hill’s Oyu Tolgoi In Line With FY 2014 Guidance
Turquoise Hill Resources (TSX:TRQ)(NYSE:TRQ) produced 589,000 ounces of gold in concentrate, and 148,400 tonnes of copper, in 2014, which is line with company expectations, from its Oyu Tolgoi mine, located in Mongolia.
Read more