Gold has been on a roll this year and every piece of bad news makes it look like a smarter investment.
That’s because gold comes into its own when times are hard – and they are particularly grim right now. Gold also does well when interest rates are low – and they are at record lows in most parts of the world today.
Buying gold outright or investing in Exchange Traded Funds offer direct exposure to the metal. But there is also the option of buying gold mining shares. Coining it: Chief executive Richard Gray in the mine which has already produced commemorative coins MIDAS UPDATE: There’s even more gold in them thar SCOTTISH hills!
Some investors may find gold alluring but would prefer to keep their cash close to home, supporting businesses and fostering employment on these shores. Scotgold is an intriguing option for anyone falling into this bracket.The company […]
JP Morgan says bitcoin’s 2020 surge is set to continue as the digital cryptocurrency competes better against gold as an alternative currency. In a note, the financial institution says that with millennials set to become a more important market participant in the coming years, their preference for bitcoin to gold sets up the crypto for future success.
The financial institution’s assessment comes as the digital currency continues to see increasing adoption by institutional investors and an embrace by corporations like payments giant Paypal.
According to a report , JP Morgan estimates the “physical gold market is worth $2.6 trillion, which includes assets held within gold ETFs.” The financial giant deduces that for bitcoin to catch up with gold market value, “the cryptocurrency would have to surge 10x from current levels.”
At the time of writing, the bitcoin market capitalization was at $242.2 billion while the value of one BTC was just […]
Gold markets have initially pulled back a bit during the trading session on Wednesday, only to turn around a break above the $1900 level. That being said, the market looks very likely to pay quite a bit of attention to the 50 day EMA which is flat and driving right through the middle of the recent trading action. With that being the case, the market is likely to continue to see a lot of interest in this area, and of course the US dollar is greatly influential on what happens in the gold market anyway. With the US dollar losing a little bit of a ground on the Wednesday session, that does drive gold up a bit. Gold Price Predictions Video 15.10.20
To the downside, I think that the $1850 level continues to be an area that will offer a bit of support, but I believe there is even […]
Fears of a vaccine pushing the gold price down are overplayed, said Lobo Tiggre of the Independent Speculator.
“I think this is another one of these overblown things. Yes, we have seen gold move on vaccine headlines, I don’t deny that, but it’s a mistake to think that 2020 gold is all about the vaccine,” Tiggre told Kitco News.
The most important fundamental drivers of gold are still tied to monetary and fiscal policies, Tiggre said.
“We have been on a volatile upward trend since late 2015, well before COVID. But even the more recent and dramatic upturn started after the Powell pivot. This is really about monetary and fiscal policy, starting, first and foremost with monetary policy. It’s about negative real rates,” he said.Even if a vaccine were to be introduced, it would still take time for the economy to normalize, Tiggre noted, and the fundamentals behind the gold price would […]
Gold prices on the rise as the U.S. dollar retreats Gold prices tallied a third straight gain on Wednesday, with prices for the precious metal marking their highest finish in over a month, as a rise in bond yields was overshadowed by weakness in the U.S. dollar.
Copper futures, meanwhile, logged another settlement at the highest since 2018 , buoyed by signs of strength in Chinese demand. On Wednesday, Reuters reported on the possibility that China will buy copper for its stockpiles ahead of a meeting of the nation’s leaders to discuss the next five-year economic plan.
Looking to gold, “concerns about a will-they, won’t they agree [to a U.S.] a stimulus deal is weighing on the U.S. dollar,” Ross Norman, chief executive officer of Metals Daily, told MarketWatch.
So “in short, gold is being seen as the go-to safe haven,” he said. “Gold has switched back to dollar watching and is […]
Editor’s Note: With so much market volatility, stay on top of daily news! Get caught up in minutes with our speedy summary of today’s must-read news and expert opinions. Sign up here!
( Kitco News ) – Gold and silver futures prices are moderately down in early U.S. trading Thursday, as both metals continue to trade in an inverse fashion with the daily movements of the U.S. dollar index , which is higher today on a corrective bounce after hitting a six-week low Wednesday. The safe-haven gold and silver bulls continue to be perplexed their metals can’t catch a bid when the U.S. stock indexes start to wobble a bit. December gold futures were last down $13.80 at $1,915.70 and December Comex silver was last down $0.326 at $24.91 an ounce.
Global stock markets were mixed overnight, with Asian shares mostly weaker and European shares mostly firmer. U.S. stock indexes […]
Ahmedabad: While stability in gold prices coupled with the auspicious muhurat of Dussehra are expected to infuse the much-needed optimism for gold demand, yellow metal sales are expected to take a major hit this festive season. Estimates by India Bullion and Jewellers’ Association (IBJA) suggest that gold sales are expected to decline at least by 50% against last year.
Gold price stood at Rs 52,800 per 10 gram on Saturday. Haresh Acharya, director, IBJA, said, “Gold sales will be at least half of that last year. However, it will be mostly driven by jewellery sales
“With the government announcing 100 persons permitted in wedding occasions, people are out to make purchases,” said Manoj Soni, an Ahmedabad-based jeweller.
“Pent-up demand will play a major role in driving jewellery purchases. Moreover, since it is a Sunday, people will come in to make purchases” said Jigar Soni, president, Jewellers’ […]
Earlier this week, Bitcoin ( BTC ) advocate and Real Vision CEO Raoul Pal said gold is breaking down against BTC. If the dominant cryptocurrency continues to gain momentum against BTC, it could strengthen its perception as a store of value.
In the past month, the price of Bitcoin gained 30.36% against the U.S. dollar, from $10,136 to $13,217. In the same period, gold has gained about 2.25%, from $1,863 to $1,903. Gold slumps against Bitcoin. Source: Raoul Pal, Bloomberg Why is Bitcoin outperforming gold and stocks?
In the past two weeks, while the price of Bitcoin rallied strongly, both gold and the U.S. stock market steadily recovered.
The confluence of three major factors likely contributed to the upsurge of Bitcoin since early October.First, PayPal’s crypto integration announcement buoyed market sentiment. Second, the institutional demand for BTC has continuously increased following Square, MicroStrategy, and Stone Ridge’s investment. Third, Bitcoin’s favorable high […]
A gold bar is wrapped in a financial newspaper.
GSO Images | Getty Images
Gold retreated 1% to near $1,900 an ounce on Thursday on better-than-expected U.S. jobs data, with appeal of the metal further weighed down by a stronger dollar and doubts over a U.S. stimulus package before the presidential elections.
Spot gold fell 1.1% to $1,903.06 per ounce, and U.S. gold futures slipped 1.3% to $1,905.20.“The jobless claims number, which is much better than expected,” was pressuring gold, said Edward Moya, senior market analyst at OANDA, adding that “an improving number kind of takes away some of the urgency for getting a stimulus deal done now.”Data showed initial claims for state unemployment benefits in the U.S. dropped 55,000 to a seasonally adjusted 787,000 last week, although the overall number was still relatively high.A Reuters survey had forecast 860,000 claims in the latest week.The dollar , meanwhile, bounced back from a […]
(Reuters) – Freeport McMoRan Inc FCX.N beat analysts’ estimates for third-quarter profit on Thursday, as the miner benefited from higher gold prices due to the COVID-19 pandemic and cost cuts.
The Phoenix, Arizona-based company announced a major cost-cutting drive in April and has also lowered its capital expenditure.
Total costs and expenses fell about 7% to $2.97 billion in the third quarter ended Sept. 30.
The average price that Freeport received for its gold surged nearly 28% to 1,902 per ounce in the third quarter, with copper and gold sales nearly 7% higher than the company’s July estimates.Gold prices have surged this year as investors flocked to safe-haven investments due to the uncertainty fueled by the pandemic.Freeport said on Thursday plans to transition the giant Grasberg copper and gold project in Indonesia to underground operations from open pit mining were on schedule.The company reported net income attributable to shareholders of $329 million, […]
First of all, I need to start off with a disclaimer. By no way am I endorsing either President Trump or former Vice President Biden in the following article. This is simply an attempt to forecast what market participants might see if Joe Biden is elected as the next president of the United States.
The last presidential debate has concluded, and the polls currently indicate that former Vice President Biden has a 10-point lead, which means that gold investors need to understand the possible impact of a Biden victory as it relates to gold pricing.
If history is any indication as to whether or not analysts can predict how gold prices will react, one simply needs to look at how gold prices moved in November 2016 when voters elected Donald Trump. Most analysts including myself believed a Trump victory in 2016 would be extremely bullish for gold and in the case […]
Microsoft is set to announce its full Games with Gold November plans this week, with a new lineup of four Xbox One and Xbox 360 launching in a week.
No precise date has been shared, but things will need to be revealed before Sunday, November 1, 2020.
This means that the next big Xbox Live Gold reveal will be dropping over the coming days. No leaks have surfaced suggesting what might be hitting Games with Gold next.
And it’s going to take something special to top the likes of the most recent additions made to Xbox Game Pass.Microsoft’s other big subscription service just Rainbow Six Siege made part of the official lineup. And while R6 might not be a new game, it’s still very popular and has built a huge following. eFootball PES 2021 Data Pack 2.0 update makes HUGE changes October’s Games with Gold lineup included Slayaway Camp: Butcher’s […]
Gold stocks are still correcting. Their necessary selloff to work off overboughtness and rebalance sentiment after their latest upleg peak hasn’t finished its mission.
The major gold stocks have yet to revisit oversold levels and eradicate early August’s universal greed. And they haven’t yet fallen far enough to leverage gold’s own correction normally.
The depth and duration of this gold-stock correction is dependent on gold’s own. And that doesn’t look over yet either since gold remains so far above its 200-day-moving-average support zone.The gold miners’ stocks are still correcting, continuing to rebalance both technicals and sentiment. This sector’s huge surge into early August spawned extreme overboughtness and universal euphoria, which are gradually being bled away. This same necessary and healthy corrective process is underway in gold itself, which overwhelmingly drives gold-stock price levels. This is leading to great buying opportunities.Gold-stock speculators and investors are growing weary, wondering when miners’ next upleg […]
Bitcoin has proven itself to be a risk asset, not a safe haven, with “considerable” potential upside, according to a Friday note from JPMorgan’s Global Quantitative and Derivatives Strategy team obtained by CoinDesk.
Writing to clients in “Flows & Liquidity,” one of JPMorgan’s flagship publications, the authors said that characterizing bitcoin as a “risk” asset rather than a “safe” asset is “more appropriate” based on the leading cryptocurrency’s increased positive correlation with the Standard & Poor’s 500 Index since March.
Bitcoin’s function as a risk asset is “likely more of a reflection of a need for an ‘alternative’ currency rather than a need for a ‘safe’ asset or ‘hedge’.”
“To some extent, this is also true with gold,” the authors add, although the yellow metal’s volatility is notably lower than bitcoin’s.How investors currently perceive bitcoin’s value implies that it could “compete more intensely” with gold as an “alternative” currency over the coming […]
Even Warren Buffett, one of the greatest investors of our time, bought some gold for his portfolio. Specifically, in the second quarter, he invested approximately US$565 million in Barrick Gold (TSX:ABX) (NYSE:GOLD) through Berkshire Hathaway . Since then, the gold miner stock has only appreciated about 7%.
Usually, Buffett doesn’t trade in and out of stocks quickly. He would potentially sell his public stock holdings when they arrive at their intrinsic values. Often, that doesn’t happen overnight.
Gold miners don’t pay much of a dividend. Right now, Barrick Gold only yields 0.60%. So, he must expect to get meaningful returns from stock price appreciation. Rising gold prices
Barrick Gold stock has been in a renewed upward trend since late 2018. The growth of its profits really started coming through in 2019 when it boosted its revenue by 34% to US$9,717 million. The EBITDA margin also improved to 46.8% from 2018’s 41.7%. […]
It’s been quite a week for Bitcoin, a week we’ve been waiting for. The coin is up nearly 13 percent and burst through the $13,000 barrier. Some of that support came from Paypal’s decision to enable cryptocurrency purchases, a move that sent its stock soaring . The company will need that kind of rise to stay ahead of the coin’s value. Bitcoin’s valuation is now just one behind the payments processor that lets people trade it.
Traders, though, expect that Bitcoin will slow down after that strong rally, which has allowed the coin to regain its cryptocurrency dominance . Some experts think that the new level might even be meaningless. They see prices falling unless it picks up some strong support from bulls.
One person who sees any fall as temporary is Raoul Pal. A former Goldman Sachs hedge fund manager, Pal has said that he thinks Bitcoin could reach a […]
Gold is refined at a non-ferrous metals plant in Russia. (Bloomberg) Gold continues to make headlines daily with its roller coaster ride to new record highs. With all the mixed information and “expert” opinions, it is easy to become confused when considering it as a possible investment.
Given the current challenges the world and the United States face, the possibility to see yet higher gold prices does exist. The markets continue their volatile ways and seem to have rebounded in the face of the ongoing uncertainty created by the pandemic.
But is it a good investment for your portfolio?Of all the […]
Gold bullion bars are pictured after being inspected and polished at the ABC Refinery in Sydney on August 5, 2020.
DAVID GRAY | AFP | Getty Images
Gold jumped 1% on Monday on optimism around a U.S. stimulus bill and a weakened dollar, despite gains in the stock markets after reports that U.S. President Donald Trump could soon be discharged from the hospital.Spot gold was up 0.7% at $1,912.80 per ounce after hitting the highest since Sept. 22 at $1,918.36. U.S. gold futures settled up 0.7% to $1,920.10.Optimism over fiscal stimulus came into play after upbeat weekend comments from U.S. House […]
Gold prices barely moved on Friday inching lower and trading in a very tight range. The dollar declined slightly after rallying on Thursday as US yields consolidated. The movement in the dollar and yield came despite a stronger than expected US retail sales report, that seemed to be countered by a slight dip in US consumer confidence.
Trade gold with FXTM Technical analysis
Gold prices edged lower trading sideways and barely moving on Friday. Prices remain above short term support is seen near the 10-day moving average at 1,902. Resistance is seen near the 50-day moving average at 1,927. […]
Gold (XAU/USD) buyers are finally extending their control above $1900, rejoicing the renewed optimism over the US fiscal stimulus. The safe-haven US dollar wilts amid a risk-on market mood after US House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin moved closer to an agreement on a fresh coronavirus relief package late Tuesday.
Markets remain hopeful that the stimulus deal will be clinched ahead of the November election and the new funds will boost the demand for gold as an inflation hedge. The stimulus talks are likely to continue this Wednesday. Let’s take a look at how gold is positioned […]
Gold buyers catch a breather above $1,920 after posting the biggest gains in a fortnight.
COVID-19 data from US states, Victoria propel fears of wider wave 2.0.
Trump blames Democrats for the delay in stimulus despite recent hopes, EU and the UK resume Brexit talks. US Initial Jobless Claims, aid package updates will be the key. Gold drops to $1,924, after rising for three consecutive days, during the early Asian session on Thursday. The latest challenges to risk-on mood, initially backed by the hopes of the US coronavirus (COVID-19) relief package and a soft Brexit, […]
Long term investing can be life changing when you buy and hold the truly great businesses. While not every stock performs well, when investors win, they can win big. Don’t believe it? Then look at the Highland Gold Mining Limited ( LON:HGM ) share price. It’s 437% higher than it was five years ago. This just goes to show the value creation that some businesses can achieve. Also pleasing for shareholders was the 10% gain in the last three months.
While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic […]
Expanded margins have created an optimal environment to invest in miners, but investors should still watch for jurisdictional risks, including the inability for miners to access their sites due to the ongoing pandemic, said Brent Cook, founder of Exploration Insights.
“If the company can’t get to site, that drops them down in terms of our interest,” Cook said.
Cook’s top picks for mining companies include Bluestone Resources (TSXV: BSR.V), Westhaven Gold Corp. (TSXV: WHN.V), and Clean Air Metals (TSXV: AIR.V).In addition, mergers and acquisitions activity have been slowed by COVID-19.“Due diligence required to do mergers and acquisitions and such, has been […]
Gold markets initially tried to rally during the course of the week, reaching towards the $1940 level before pulling back to form a shooting star. The shooting star of course is a negative candlestick, and it suggests that we could drift lower. With that being the case, I think […]
Editor’s Note: Get caught up in minutes with our speedy summary of today’s must-read news stories and expert opinions that moved the precious metals and financial markets. Sign up here! (Kitco News) Gold’s bull rally is still very new and prices have a chance to rise another 50% under […]