After peaking in 2011, gold has lost some of its shine

After peaking at $1,900 an ounce in August 2011, gold prices tumbled to $1,181 an ounce in June as the economy improved, inflation stayed low and investors worried less about finding a safe haven for their money. Prices had rebounded to $1,307 an ounce by Wednesday, but that was still 31.2 percent below 2011’s high.

“The bear market has lasted longer than many people expected. In the last couple of years, a lot of companies have been treading water, holding their claims and hoping prices go up and allow them to raise capital for exploration,” said Mike Visher, deputy administrator of the Nevada Division of Administrators. “This is not a good time for weak stomachs.”

Dave Shaddrick, a geologist who’s also president and director of the Nevada Mineral Exploration Coalition, called it a “very difficult time” for exploration, particularly for smaller companies. Looking for profitable ore bodies is a high-risk affair, and investors aren’t willing these days to put up money for it.

The carnage may not be over. Goldman Sachs set a 2014 target price of $1,050 an ounce in early September, though the Federal Reserve’s Wednesday decision to keep buying bonds to stimulate the economy gave a $50-per-ounce jolt to futures.

Now USD 1323/oz

Gold drops on fresh stimulus fears, weak buying from China

Gold fell on Monday after sharp losses in the previous session on renewed fears that the U.S. Federal Reserve will begin tapering its bullion-friendly stimulus measures later this year. Weak buying from major consumer China, which was back from the mid-autumn festival holiday, also weighed on prices.

Traders in Hong Kong and China said there was not much buying interest from China, the second-biggest gold consumer after India. "We can see some buying interest from them only if prices fall below $1,300 and stay above $1,250," said one dealer.

Now USD 1319/oz

Yup, USD getting "stronger"
http://www.bloomberg.com/quote/USDMYR:CUR

Nope, Just watching now. I got others commitments

Gold seen falling as Fed tapers

Gold will extend losses as the U.S. economy improves, according to Citigroup Inc. and Morgan Stanley, which said the Federal Reserve’s surprise decision to hold stimulus for now will help prices only in the short term.

Bullion may drop below $1,250 an ounce before the end of the year as economic data strengthens and investors expect the Fed to start reducing its asset purchases, Citigroup analysts Ed Morse and Heath Jansen said in a report today. Bullion will average $1,250 next year, down from $1,405 in 2013, they wrote. Morgan Stanley expects bullion to average $1,200 to $1,350 in the coming year before trending lower, it said in a report.

“The postponement of the tapering decision by the FOMC represents only a short-term reprieve for gold,” the Citigroup analysts wrote. “Does this mean the end of the downtrend in gold? In our view, the fundamental and clear answer is no.”

Slowly increasing. Now USD1326/oz

Really, I don't know

Gold firms after 3-day drop, Fed uncertainty persists

"As long as this backdrop remains, we can expect gold prices to remain volatile," said OCBC Investment Research's Lim Siyi, who tracks exchange-traded funds. "Most investors have a wait and see attitude right now because it is very hard to predict the upside, especially with all the speculative positions."


Gold premiums across Asia remained weak due to lacklustre physical demand ahead of what is typically a strong buying period for top consumers India and China, which are headed into a wedding and festival season. But the Fed uncertainty and India's attempt to cut gold imports as it tries to wrestle down its ballooning current account deficit are keeping buyers at bay.
"Physical demand is not strong enough to support prices," Lim said.

Gold deposit of 250,000-ton discovered in Fujian: report

A gold deposit with a reserve of 250,000 tons has been found in Dehua county, Fujian province, Fujian Daily reported.

According to the exploration result, the deposit is more than 100m in length and of an average thickness of more than 3m. In total, the reserves are estimated at almost 10 million metric tons of gold ore and more than 250,000 tons of gold.

Exploration is still being carried out on the north of the deposit. Experts said it is possible the find will be a super-large gold deposit.

An official in charge said the find of the porphyry gold deposit has a guiding significance for finding more Mesozoic volcanic rock-hosting gold deposits.

More supply for the global market

yessss, very2 good

Now USD1316/oz

After Taper Delay, Gold Markets Still Strewn With Uncertainty And Conflicting Views

Gold observers are all over the map about the effects of U.S. monetary policy on their favored investment, even as most hold that a Federal Reserve tapering would bode ill for gold prices.

At least one industry expert, who works for one of the largest North American retail sellers of gold, isn’t afraid to raise the specter of gold falling below $1,000 an ounce in coming months, down from a Monday close of $1,326.

“I can see gold breaking $1,000 an ounce,” said Peter Hug, precious metals director at Kitco Metals Inc., at a New York commodities conference on Monday, among a panel of experts mostly optimistic about gold’s future.

“This market is very sensitive to economic policy,” continued Hug, citing abrupt market reactions last Friday to remarks by Federal Reserve board member James Bullard, even after Fed Chair Ben Bernanke’s indications that it could be 2014 before tapering starts.

“All it took was one comment…He [Bullard] says, maybe, still in October – metals get hammered and drop 50 bucks,” said Hug.

Gold down for 4th day as dollar up, Fed policy uncertain

Gold dipped for a fourth consecutive session on Tuesday as the dollar firmed and a lack of clarity over U.S. monetary and fiscal policy dented demand.

"Gold is falling because markets are now expecting an improvement in the next U.S. labour market next week, which could lead to the Fed tightening, as the Fed's decision is data dependent," Quantitative Commodity Research owner Peter Fertig said.

Gold premiums across Asia remained weak due to subdued physical demand ahead of what is typically a strong buying period for top consumers India and China as they head into wedding and festival seasons.

Moves by India to cut gold imports as it wrestles with its ballooning current account deficit have been keeping buyers at bay.

Gold Swings as Investors Weigh Tapering Prospects by Year-End

Gold swung between gains and losses amid concern that the U.S. Federal Reserve will slow the pace of its monthly bond purchases before the end of the year after leaving the stimulus program intact this month.

“It was a short-term blip,” said Steven Dooley, head of research at Forex Capital Trading Pty in Melbourne, referring to gold’s gains after the Fed’s decision last week. “The entire focus is on the fact the money-printing program is going to wind back soon, and that means gold’s going to drift lower.”

The Fed’s decision to maintain stimulus will help prices only in the short term, Citigroup Inc. and Morgan Stanley said this week. Bullion may drop below $1,250 before the end of the year as economic data strengthens and investors expect the Fed to start paring the asset purchases, according to Citigroup. Dudley’s comments yesterday were made in an interview with CNBC.

Now USD1322/oz, up a bit from yesterday

Gold flat on uncertainty over US budget talks, Fed

Gold was little changed on Wednesday, struggling to hold onto modest gains in the previous session as lack of clarity over the outlook for U.S. economic stimulus offsets a possible government shutdown in Washington.

"The markets don't really know where to go at the moment," Saxo Bank senior manager Ole Hansen said.

"If the budget talks continue to stall, that could obviously give a boost, but on the other side the focus on the tapering won't go at the moment as an October announcement won't make the Fed look good," he added.

When gold prices fell sharply in April and June, physical demand increased. But with continued volatility in prices and expectations of further declines, consumers in top markets China and India now are staying away, and premiums over London prices remained unchanged from last week's.

China, the second biggest gold consumer, is headed into a strong buying season, but market holidays next week for the National Day have kept things quiet, traders said.

Now USD1333/oz

Now USD1337/oz

Gold's gains fizzle as focus shifts to US debt ceiling

Gold was little changed on Thursday, holding steady above $1,330 an ounce as worries of a possible U.S. federal debt default and the chances of a government shutdown next week could boost the metal's safe-haven demand.

The U.S. Congress is struggling to pass a spending bill to keep the government funded beyond Oct. 1.