Monday, September 26, 2016
Analysts are expecting the gold price to increase if US Presidential hopeful Donald Trump appears to take a lead over rival Hillary Clinton in today’s (Monday September 26) first Presidential debate.
Investors will be watching the debate carefully for signs of who is likely to be the front runner. The uncertainty surrounding Republican candidate Donald Trump is widely predicted to send investors heading for the safe haven of gold supplies if he appears to be ahead in the race.
NAB analyst Vyanne Lai told Reuters: “If Trump is perceived to have an improved probability of winning the Presidential race, that is likely to be supportive of the gold prices, so we could see (gold) prices rallying in the short term amid higher volatility.”
Other factors that are continuing to affect the price of the precious metal include the ongoing speculation over whether the US will raise interest rates again this year. The price of gold tends to be sensitive to rising interest rates.
At the end of last week, a spilt between policymakers in the rate-setting Federal Reserve seemed to appear, with the Boston Federal Reserve President Eric Rosengren telling reporters he believes the cost of borrowing should only be increased gradually. Members of the Fed seem to be split on the outlook for US employment when deciding whether to increase rates.
Analysts generally expect the Fed to hold off from a further rate rise in its November meeting, which is less than a week before the US presidential election. However, the cost of borrowing could still be increased in December when the markets have had time to settle and assess the new president-elect.
Gold started this week well, maintaining the strong prices it saw at the end of last week. At 09:15 GMT this morning, it was valued at £1,033.20 per troy ounce.
Monday, September 19, 2016
Gold hit fresh highs this morning (Monday September 19) ahead of meetings this week at the Bank of Japan and the US Federal Open Market Committee (FOMC).
At 08:30 this morning, gold was valued at £1,008.67 per troy ounce, jumping back from a dip over the weekend.
Investors will be watching the US Federal Reserve’s two-day meeting carefully. The Fed will announce on Wednesday whether it is raising interest rates – something most market analysts are not expecting to happen until December.
The Bank of Japan also holds its monetary policy meeting on Wednesday, when it is expected to take some easing measures although it is not clear yet what these may be.
MKS Group told Bullion Desk: “The [precious] metals are likely to trade heavily leading into the FOMC meeting this week and may see whippy price action around Wednesday’s BoJ announcement.”
The US Consumer Price Index (CPU), which measures inflation, was up in August ahead of market expectations. However, analysts are still confident that the cost of borrowing will not be raised in the US until the end of the year.
ANZ Research spoke to the news source: “We see the CPI figures as not being enough for a September Fed hike, but leaving a December hike odds-on and bolstering the case for drawing some battle lines, shifting the market away from liquidity-driven support to the economic fundamentals. That’s an environment where volatility will remain elevated.”
Investors also turned to gold for its safe haven properties following a bomb blast in New York on Saturday, in which 29 people were injured. It has increased concerns about terrorism attacks in the city, where global leaders are meeting for the 71st session of the UN General Assembly.
The gold rally extended to other precious metals, with silver, platinum and palladium making gains in strong trade.
Monday, September 12, 2016
Gold bullion coin collectors can now snap up a highly anticipated coin from the US Mint.
The 2016-W Standing Liberty Centennial quarter ounce gold coin has been produced 100 years after the first Standing Liberty quarter.
It is the second of three limited edition collectible coins being produced this year to mark the 1916 renaissance in US coin production.
The first, released in April, was the Gold Mercury dime. Just 125,000 of the coins were made and were limited to sales of 10 coins per household. It sold out in less than an hour.
There are fewer Standing Liberty quarters being produced, with a run of just 100,000 making them even more collectible. Buyers are limited to one per household and around half of the run was sold on the first day the coin was available.
The original 1916 Standing Liberty quarter was made from 90 per cent silver and 10 per cent copper but the new edition is .9999 fine 24 carat gold. It weighs in at a quarter of a troy ounce, symbolising the type of coin it is.
The final coin in the commemorative trio, the 2016-W Walking Liberty Half-Dollar Gold Coin will go on sale before the end of the year.
Collecting coins that are only produced in limited edition numbers is a great way to add extra value to your gold investment. The comparative rarity of the coins adds to the worth of the gold they contain and makes them much more desirable for collectors, especially over the longer term.
If you are buying rare or collectible gold bullion coins, always make sure you’re doing so from a reputable dealer so you know you are buying the genuine article. The Gold Bullion Co has been established for more than 20 years and the prices you pay for coins reflects the up to the minute gold price.
Wednesday, September 7, 2016
The rally in the price of gold that has been seen in 2016 has persuaded more and more people to look out their unwanted or broken jewellery to trade in.
Increasing numbers of people are now sending gold for recycling, after a slowdown that had lasted for three years. But now that the gold price is on the up – and looks set for its biggest gain in a year since 2010 – it’s bringing much needed gold for recycling back on to the market.
The recycled or scrap gold part of the market is so important because around a third of the global supply of bullion comes from recycled gold.
Figures from the World Gold Council show that when the gold price fell from record highs in 2011, the amount of the precious metal being recycled plummeted. Last year, it hit its lowest level in eight years.
However, the jump in the price of gold this year has seen a 10 per cent rise in the amount of scrap gold being recycled.
Baird & Company, which melts down scrap gold for clients around the UK, is now planning to increase the size of its refinery in London.
Executive director, Tony Dobra, told The Independent: “We’ve un-mothballed parts of our plant.
“When prices were lower, we struggled to get enough material to meet demand. Now we’re seeing double the volume we did a year ago.”
So if you want to make the most of the high gold prices, it’s worth hunting out any old gold jewellery you no longer want or wear, and converting it to cash while the market is on a high. Although the scrap gold price is never as high as the gold price per troy ounce, it rises in tandem and it’s currently riding high.
Monday, September 5, 2016
Gold has been one of the very best performing investments this year, with the eight best performing funds of 2016 all gold funds.
Poor global growth, concerns about the Chinese slowdown, Brexit and the forthcoming US Presidential elections have all pushed savvy investors towards the precious metal, resulting in a strong price for most of this year.
But is the gold rally sustainable? Some investors may now be looking to sell to cream off profits at the top of the mark, but there could still be further rises in the price of gold. Much depends on outside influences and how the markets react to them.
Michelle McGrade of TD Direct Investing told the Daily Telegraph: “The price is up by 16 per cent over 12 months and so some profit taking could be a clever thing to do.”
However, Nick Peters, a portfolio manager with Fidelity, believes gold will continue to have an important part to play in investors’ portfolios.
He said: “Although we have seen a significant rally in gold, I think investors should still consider an allocation to the precious metal.
“Gold can function as a safe haven during times of market volatility and provide strong countervailing returns to shares.”
It is this safe haven aspect that has appealed so much to investors during 2016. With volatility in stock markets and world events, the precious metal has again shown its traditional worth as safe place to store money. Although there are not the potential high returns from gold that other more risky investments can offer, gold does not tend to lose its value in the same way.
Mr Peters added: “Gold has benefited just as much from an easing in headwinds as any support from jittery investors. With yields [on other assets] expected to remain lower for longer, the traditional drawback of gold, that it yields nothing, is less of an issue.”
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