Gold Bonanza

[ayitin69]

The Wild Card
Gold

The ongoing bullish bonanza continues with no indication of a stop. All oscillators on all time scales are showing one unified bullish direction.
Forex Traders are advised to use that strong bullish momentum and swing into the most current lucrative trend in the Forex market.

[ayitin69]

The GOLD PRICE traced out a pattern similar to silver's, with a rising triple bottom. Only confirmation still lacking is climbing above Tuesday's $985 high, which tomorrow should see or I will probably be dead wrong about everything else.

Y'all hold on to your hats -- silver & gold prices are fixing to blow! If you haven't bought yet, you'd better buy some now.

Unbeknownst to me, who readeth not newspapers nor listeneth to news, the Federal Reserve yesterday agreed to swap Treasury Securities to banks for rotten, non-performing, subprime, subsubbasement securities, thus bailing out the banks (Surprise! They're corrupt!) That sent the stock market & the US DOLLAR INDEX into hyperdrive. Today, take stock in stocks & buck: stocks are barely above 12,000 at 12,110 and dollar index lost a hemorhagic 89 basis points today and closed at a new low.

[ayitin69]

Turmoil in global credit markets may lead to the collapse of a North American bank, pushing bullion prices up to $2,000 (U.S.) an ounce as investors seek a haven in gold, Eric Sprott says.

This year's decline in banking and brokerage stocks will worsen, said Mr. Sprott, 63, founder and chairman of Toronto-based Sprott Asset Management, which manages about $7-billion.

In response, the company is short-selling financial stocks and increasing holdings in bullion and mining companies, Mr. Sprott said.

He declined to name which bank he thought may collapse.

"We're in a systemic financial meltdown," he said."There are probably 10 companies that are broke that are still trading - banks and financial institutions."

Mr. Sprott, who in 2004 foresaw uranium and crude oil prices rising, expects the global financial system to come under increased stress as banks, faced with slipping stock prices and capital erosion tied to subprime mortgage loans, battle to raise money to offset losses caused by asset writedowns.

The "concentration" of Sprott's short selling is in financial stocks, housing and consumer products, he said. Short selling involves selling borrowed stock on the expectation share prices will fall, allowing the short seller to buy the equities in the market at a lower price to repay the debt.

"The brokerage companies, the investment banks are the easiest to short," he said.

"Do I understand what's happening in the business? Yes, there is no business."

Mr. Sprott said his company's offshore hedge funds have increased the proportion of gold in their portfolios to about 30 per cent. "Government bonds are a joke at the interest they're paying," Mr. Sprott said.

[ayitin69]

Gold futures briefly broke the psychologically important level of $1,000 an ounce Thursday, propelled by ongoing dollar weakness and bleak news from the financial sector. Gold soared as high as $1,001 an ounce on the New York Mercantile Exchange. Gold for April delivery was last up $17.50 at $998 an ounce. "Gold prices looked set to finally achieve the $1,000 mark this morning, as background market conditions shifted from bad to worse overnight," said Jon Nadler, senior analyst at Kitco Bullion Dealers, in a research note. "This will likely become known as the Carlyle/Drake Rally," Nadler said. "The imminent doom of the bond fund and probable demise of the hedge fund sent icy shivers through the financial markets that way overshadowed the (brief) cheer we witnessed following the Fed's term facility plan the other day."

[ayitin69]

Gold is regarded as a safe haven for investments. It is a scarce commodity. It is said that if you collect all the Gold excavated all-throughout history it would be the size of a standard tennis court (length x width x height).During times of a recession or fear in the market speculators usually flock to Gold. As per my previous posts I have given my analysis of the markets and the effects on the global economy. As Gold crosses never before seen levels it is proving that the economic events taking place are in fact serious and should be feared.

[ayitin69]

There�s a never-ending oscillation between fear and greed in financial markets, and these days, if you believe the commodities markets, people are very, very scared.

Faced with the plummeting dollar and skyrocketing oil prices, investors are scrambling for safe havens, which include gold and precious metals.

GoldMoney.com founder James Turk, was quoted by Bloomberg as saying:

Gold is not only an inflation hedge, it�s a catastrophe hedge. Gold is becoming increasingly important as the credit crunch continues to spiral out of control.


When there�s uncertainty, people like to have something they can touch, see and hold. Back when paper money was still a new concept, people stacked up on physical gold bars whenever there were uncertainties in the horizon.

In this day and age of investment sophistication, people still run to gold when they feel things go bump in the middle of economic nightmares, but they now do this in various ways � buying gold jewelry, gold bouillon, gold mutual funds, gold exchange traded funds, mining companies that produce gold, gold coins or gold futures. As with any type of investment, each option has advantages and disadvantages, says Investopedia.com.

Buying gold jewelry, bouillon and gold coins are perhaps more easily understandable than the other options in the pack.
To Be Continued.....

[ayitin69]

When investors want to profit from the commodities boom, the most logical way to do it locally would be to buy shares of stocks in companies that produce gold and other precious metals, or produce and sell oil.

It sounds simple, but there are many ingredients in this plan. Investors need to choose a well-managed and well-positioned company that�s not overpriced (read: cheap). Aside from that, and perhaps more importantly, would be to analyze the overall market sentiment.

Case in point: Philex Mining Corp., one of the most profitable gold mining companies in the country. Despite the skyrocketing price of gold, it ended Friday at P7 from more than P9 in end-February.

�Investors locally can take a position in gold or oil by buying locally listed stocks that deals with gold or oil, but an added consideration will be the overall stock market sentiment,� said Alijeffty Gonzales, president of ACG Advisors and Management Limited Co.

Jeff also raises the question of why gold prices are now at high levels to determine whether this kind of investment has legs. If the spike is because of the dropping dollar and inflation, which is the consensus, he says a reversal is likely when the dollar strengthens.

Meanwhile, big-time investors continue to ride the boom in commodities by trading in futures exchanges overseas like the Singapore International Monetary Exchange (SIMEX) for oil and the Hong Kong Financial Exchange for gold.
To Be Contineud ......

[ayitin69]

Let me stress the phrase �big-time.� Jeff says using leverage in trading tremendously magnifies both the profit AND losses that can be made. Besides, minimum investments are in the thousands of dollars, fees are steep, demand on time is huge and investors who play this game should be highly liquid to maximize price movements.

�I used to trade these things and out of 10 people, nine lost money,� Jeff said.

But if the losses could be scary, the gains could also be fantastic. Jeff tells of a client who had a buy order for gold when it was still at $800 per ounce. Imagine his profit at current levels.

�We don�t have capital controls now so anybody with money can open a private account in Hong Kong or Singapore, and these accounts can give them access to markets all over the world,� Jeff said.

Some retail brokers in Singapore for example may entertain investments of around $10,000 to $15,000. Fees will depend on the volume of trade, ranging from one-fourth of one percent or 25 basis points (traders call them bips) to 2.0 percent.

�Some people here are already doing that. It�s costly to set up, though� he said.

If you want to study futures, be careful which websites you read. There are a lot of forex, gold and other trading scams out there. Start with Investopedia.com, Commodity News Center�s Introduction to Futures Trading, and articles on the industry regulator�s website, the National Futures Association, which can be found here.

Clearly, trading gold and oil in futures exchanges is not for everyone. For a country with huge mining potentials, though, it can illustrate how cogs on the wheels of financial markets work, and why the �haves� are richer than the rest of us.

As for me, I�m happy with my few pieces of gold jewelry, content that I know some things about futures, and consider my little family all the gold that I need in this world. Happy weekend!

[ayitin69]

GOLD Fields will still produce 20% less gold in the March quarter compared to the December quarter despite power restored to 95% of average consumption at its Driefontein and Kloof mines, Terence Goodlace, head of South African operations, said on Monday.

By the end of the week ending 14 March, electricity utility Eskom increased the power supply to Gold Fields, one of the hardest hit by the power crisis, to 566 megawatts. This increased power does not extend to Beatrix or South Deep.

�The granting of additional power to our mines will go a long way to help saving jobs at Driefontein and Kloof gold mines,� Goodlace said.

However, the world�s fourth-largest gold producer stuck by its forecast that output would be more than 20% lower in the March quarter against the already reduced December total of 657,000 oz. Gold Fields said in February, the decline would be between 20% and 25%.

This comes at the gold price scaled fresh highs of above $1,030/oz. At current prices, the lost production costs between $133m and R166m in revenue.

Gold Fields warned in February 6,900 jobs were at risk across the group because it would mothball shafts including the 6 and 7 shafts at Driefontein at the cost of 2,600 jobs. At Kloof 3 and 8 shafts would be mothballed, losing 2,300 jobs.

The news was met by outrage by the unions, which threatened industrial action if any jobs were lost because of mines restructuring to operate within the 90% power limit mining companies and heavy industry were obliged to operate under during February.

Eskom declared force majeure on its power supply on January 25, stopping the mines for a week. Statistics South Africa has said January�s gold production was nearly 17% lower year-on-year because of that power cut.

The government, keen to avoid the political embarrassment of job losses through the mismanagement of Eskom, has increased power supplies to mines. However, with a cold snap this weekend and the unplanned shutdown of four generators the tenuous power supply from Eskom was thrown into stark relief, with large chunks of Johannesburg left without power for hours on Monday.

As South Africa moves towards winter the power supply situation is unlikely to improve. This is a period of high domestic energy usage. Eskom�s stockpiles of coal have been reported as low despite its best efforts to secure 45 million tonnes of coal. Transport is the bottleneck.

Gold Fields said it would revisit its mining plans and reconsider the future of the shafts it had planned to shut at Driefontein and Kloof. The shafts have already been either downscaled or halted since January.

[ayitin69]

THE gold price surged well past the landmark it reached last week to touch $1,030.80 an oz because of fears around the stability of the global financial sector after JP Morgan bought Bear Sterns at a fire sale price and the Federal Reserve expanded lending to the financial services industry at the weekend.

The news driving investors into bullion shows no sign of letting up and many in the market are calling gold higher at $1,250 or $1,500 not long from now.

Gold moved to $1,030.80 on Monday morning in Asian trade. It is currently around $1,025.

JP Morgan is to buy the fifth-largest US investment bank Bear Sterns, which trades interest rate and credit default swaps, for $2/share, which is just a fraction of what they were trading at on Friday.

Bear Sterns� trading partners could face large losses, leading to a lending halt and paralysis of the global financial system if the bank went bankrupt, Reuters reported.

"It wouldn't just be Bear's problem, it would be everyone's problem," Marino Marin, an investment banker at Gruppo, Levey & Co, told the newswire. �It would be apocalyptic.�

The Fed made an emergency 25 basis points cut at the weekend in the rate at which it lends money to banks to 3.25%. It also stumped up $30bn to fund a portion of Bear Sterns� assets under a deal with JP Morgan.

Reuters reported this was the first time such steps had been taken by the Fed since the Great Depression in 1929.

"The Federal Reserve, in close consultation with the Treasury, is working to promote liquid, well-functioning financial markets, which are essential for economic growth," the newswire reported Fed Chairman Ben Bernanke as saying in a rare conference call with reporters. "These steps will provide financial institutions with greater assurance of access to funds."

[yahzeex]

A squeeze on short dollar positions could continue in the very short term, although there is likely to be resistance in the 1.5350-1.5400 band unless the US data is much stronger than expected.

Commodity prices have been a key influence over the past 24 hours. Following a push to record highs with oil peaking above the US$110 level and gold above US$1000 per ounce, there has been a sharp downward correction with both falling by around 10%.

Fund liquidation helped trigger a sharp downward move and there was also evidence of positions being unwound to boost US dollar liquidity ahead of the Easter weekend.

Commodity prices have been bought as a hedge against US dollar weakness and the sharp liquidation in positions also suggest that investors are now seeing some value in the US currency. There will also be relief that the Fed has managed to stabilise market conditions, at least in the short term. In this environment, a further squeeze on short dollar positions will be a possibility, especially if the global central banks look to encourage the correction through intervention.

The dollar will be in a stronger position to gain ground if there is any improvement in the US data flow later on Thursday.

[fxgirl]

gold has reached the peak at above 1000 usd ,the traders have started taking their profits....

[Borntrader]

gold is falling now
and it would fall a bit before a next upward move

[ayitin69]

GOLD AND SILVER:
Gold leapt to a record high $1,032.70 on Monday before heading lower as traders banked gains.
'Deepening woes in the global financial system triggered rampant safe-haven buying of gold and silver, with gold testing above 1,030 dollars per ounce,' said James Moore, an analyst at TheBullionDesk.com.
Towards the end of the week, however, gold plunged in value as traders fretted over long-term demand.
The metal was also sold off as after the US Federal Reserve cut American interest rates by three-quarters of a percentage point. That was less than expected and gave a boost to the US dollar.
'Following the less-than-expected Fed rate cut and the bounce in the dollar, heavy profit-taking emerged ahead of the long weekend,' said Barclays Capital analysts.
On the London Bullion Market, gold tumbled to $925.75 per ounce at Thursday's late fixing, down from $1,003.50 on Friday of the previous week.
Silver sank to $17.53 per ounce from $21.07.

What is your opinion about the gold price?

[yahzeex]

well u need big capital for u to trade gold..but forex u can start with as little as 1$