Keep up-to-date in the past week’s price action and the current geopolitical and economic factors driving the international and local precious metal markets.
Gold prices have enjoyed a steady week, up just over $10oz from last Friday’s London PM Fix, and currently sitting at USD $1261oz. Silver is also up marginally, sitting at USD $19.23oz. It’s been a relatively uneventful week for the precious metal complex, and indeed for global economic data, after last weeks ECB interest rate decision, and US Non farm payroll report.
After a bearish break down last week, gold prices have stabilised over the past few days, as the financial and investing world looks to the European Central Bank (ECB) and its president, ‘Super’ Mario Draghi.
The gold bears finally won the battle. After weeks of trading in an increasingly narrow range, gold finally broke down earlier this week, dropping through support in the USD $1280 range and falling all the way to USD $1258oz where the metal currently trades.
Another relatively uneventful week for precious metal prices so far, with both gold and silver still trading in relatively narrow ranges. Using the London PM Fix as our guide, USD gold has averaged USD $1293.60oz for the month of May, with the high/low range for the period coming in at USD $1306.25oz and USD $1278.50oz, respectively.
Precious metal prices have been relatively uninspiring the past few weeks. Whilst there has been some intra day volatility, the PM fix for gold has been stuck in a less than $50 range, trading between USD $1278oz and USD $1325oz.
Gold prices eased substantially overnight, as a reported pullback of Russian forces in the Ukraine dented the yellow metals safe haven demand.
It’s a huge week of economic data. Not only did we have US GDP figures overnight (they were horrible – more on that below), but we’ve had the latest FOMC meeting, and non-farm payrolls are due later this week in the USA too.
With the first three months of 2014 complete, this quarterly directions report will take a look at how the year has unfolded so far, with a look at market returns, as well as where gold might head in the short term.
Gold prices and the precious metal complex have enjoyed a solid week, with the price of the yellow metal rallying just over USD $20 per ounce so far, as a combination of dovish Fed minutes, volatility on stock markets and the potential for the situation in Ukraine to escalate, have all seen the metals bid.
Despite the bearish sentiment towards the precious metal complex after the sharp decline from USD $1390 per ounce, gold prices have held up relatively well this week, as the market looks toward the all important US non farm payrolls report due out tonight, Sydney time.
Gold prices briefly broke below USD $1300 per ounce overnight, as headline data beats in the US added to the downside pressures that have come to bear on the yellow metal in the past several trading days.
Please find attached slide-deck presented at the Future Wealth Forum in Perth, on the 22nd and 23rd March 2014. The event was a great success, and capped off a fantastic week for ABC Bullion, where we officially launched our Perth office. Focusing on the unresolved challenges of the GFC and potential investing solutions for these times, this presentation posed the question, "Is this time really different", and analysed the outlook for term deposits, equities, bonds and gold in the period ahead.
This link contains slides that ABC Bullion Chief Economist Jordan Eliseo, Ronald Stoeferle of Incrementum AG and Jan Skoyles of The Real Asset Company discussed in their Global Precious Metal Roundtable on 14th March 2014
Gold prices moved sharply higher overnight, at one point testing USD $1370 per ounce, as escalating tensions in the Crimea and some short covering, saw the entire precious metal complex rally.
Earnings season in Australia has given analysts plenty to mull over, with results in general showing impressive profitability but fairly weak headline growth. Whilst the markets focus has been on corporate profitability, now is also an opportune time to take a look at some of the underlying trends in the domestic economy to see how Australia is placed in 2014 and beyond.
Our beautiful Perth office is now well and truly open for Business.
UPCOMING EVENTS
Welcome Reception: Thursday 20th March 2014
Whether you are a private investor or are working on behalf of a client, this is the perfect opportunity to gain some valuable insight into the world of precious metals.
Don't miss your opportunity to attend this free event.
Super Trading Investing - Future Wealth Forum: Saturday 22nd & Sunday 23rd March 2014
ABC Bullion are also pleased to be taking part in this event which is viewed as the leading event in Australia dedicated to educating traders and investors of all levels.
ABC Bullion has 30 passes to give-away ABC Bullion guests. Register your interest now!
Click 'read more' for further information or contact Pernilla Hjelte to RSVP
pernillah@abcbullion.com.au or 08 9325 0888
Precious metal investors have enjoyed a solid start to 2014, with physical gold and silver prices up 10.6% and 11.8% respectively in USD terms. Australian dollar gold investors have been similarly rewarded, with an ounce of gold now trading at $1460.
With the Winter Olympics starting in Sochi, Russia, this short report looks at the nature of the Olympic Gold medal itself. Given to the best athletes in their respective disciplines, it is the logical prize to recognize the ultimate achievenment. Unfortunately for the winning athletes though, the medals themself don't do justice to the fantastic efforts the athletes go to in winning them, with very little actual physical gold in the medals. It wasn't always that way.........
Jordan Eliseo muses on whether or not the upcoming non-farms payroll data will confound analysts, and takes a closer look at the current state of the gold ETF market.
Australian housing prices rose 10% in 2013, with Sydney at the forefront of the nationwide boom, leading to talk of a property bubble once more. For others though, bubble or not, the bigger issue is the affordability or otherwise of what is clearly an essential item, with alarming figures of late confirming that the market is being propped up by investment dollars, at the expense of younger Australians and first home buyers who are finding it harder to get on the property ladder. In this article, ABC Bullion Chief Economist looks at average mortgage rates over the past 30 years, and current affordability for everyday Australians.