Archive for August, 2014

Weekly Trends: September 21, 2014

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Gold

Gold is now at an 8 month low, closing at $1216.60 per ounce. That is down $15 on the week. Trading began fairly quiet this week. In fact, on Wednesday, gold actually closed at $4.50 higher than last Friday’s close.

However, the big headwind for gold is the continuing strength of the US dollar, which is now up 10 weeks in a row. The Fed announced on Thursday that a faster hike in US ...

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Weekly Trends: September 14, 2014

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Gold

The yellow metal continues to struggle as the US dollar powers higher closing at $1231.50. The Fed meeting next week will be very important for gold. Investors will be looking for clues on when a potential interest rate hike may take place. Technical selling has also added to the decline in the gold price, but gold bulls argue that the USD has had too much of a run and needs to pullback.

The political ...

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Weekly Trends: September 7, 2014

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Gold was under pressure this week from a rising US dollar and closed down ~2% at $1267.30. An improving US economy and struggling Eurozone means continued appreciation for the US dollar. The Euro hit a 14 month low this week after the ECB announced a cut in interest rates and the embarking of a quantitative easing program.

Gold did have a small move upwards on Friday (+$7.50) as the US payrolls number disappointed. The ...

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Weekly Trends: August 30, 2014

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Gold had a fairly quiet week, closing at $1287.40. As the calendar turns into September, gold is entering historically its best month of the year. Gold continues to be range-bound with no catalysts to push the price in either direction. The spot price has traded in a range of <$50 in the month of August, which is the narrowest spread in five years.

In the short term, we continue to look for gold to ...

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Weekly Trends: August 23, 2014

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Gold dropped $26 on the week, closing at $1,280.20 per ounce. The week started with little movement in price, before dropping close to $20 after the FOMC minutes on Thursday. All signs coming from the Fed show the US economy continuing to improve. Data out of Europe continues to be weak and the US dollar has had a significant move since June. Gold has yet to start its seasonal rally. Russia continues to ...

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Weekly Trends: August 16, 2014

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Gold continues to trade around the $1,300 level, closing at $1,306.20 per ounce. As has been the story for the last several months, political risk is supporting the price and the US economy’s recovery is putting pressure on it. The World Gold Council issued a report on Thursday, stating a 16% drop in global gold demand in the second quarter. The report states that gold production remains strong and is at record ...

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Weekly Trends: August 8, 2014

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The yellow metal finished Thursday at $1,312.50 per ounce. So far this week, weakness in general equities and escalating tensions between Russia and Ukraine have pushed gold slightly higher. It is interesting to note that the US dollar traded at its highest levels since September 2013. The European Central Bank announced on Thursday that interest rates will remain low for an extended period of time.
 
In the short term, I ...

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Weekly Trends: August 2, 2014

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It was an interesting week for gold. The yellow metal finished the week at $1,294.80 per ounce, down $13. Gold did get a bounce on Friday, finishing up $13.40 after the US jobs report data was released. The unemployment rate climbed to 6.2%, which could mean the Fed will push back the rising of interest rates. The bounce was not enough to offset losses earlier in the week and marked the third consecutive ...

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