How Gold will perform this year.

Gold production in many countries, especially in developing or emerging markets, has declined in recent years as the global economy has largely improved since the global financial crisis. Many mining operations have shut down or downsized significantly.

Gold Prices May Fall as US Jobs Data Stokes Fed Rate Hike Bets

• Gold price selloff may restart as US jobs data stokes Fed rate hike bets.
• Gold prices paid little attention to the mixed bag of US data releases yesterday, opting to consolidate in a now-familiar range that has contained prices following a sharp plunge earlier in the week. The ADP estimate of US jobs growth undershot expectations but the ISM measure of service-sector activity growth vastly outperformed,

Gold Price Projection.

Gold Price is down as Oil is raising.

Gold moving Down as Clinton clear email from FBI.

Gold falls on increased risk appetite, US elections continue to drive sentiment

Gold is under modest pressure

Gold could jump this year

Four reasons one investor thinks gold could jump this year.

As such, a death cross for the dollar is often seen as good news for gold. There is an “80% chance gold will turn up” in such cases

Gold price edges higher, softer dollar supports

Gold prices closed above $US1,200

Gold prices closed above $US1,200 an ounce for the first time in two weeks Tuesday, helped by a wave of political uncertainty in Greece and a weaker US dollar.

helped by a wave of political uncertainty in Greece
Currently, gold trades at USD 1193.40/Oz, up 0.61% on the day, close to day's high at USD 1194.10/Oz hitsome minutes ago.

Gold Price for 13-02-2014.

Gold Price - Here are their 6-month charts.

Gold closed below its 50-day moving average yesterday, but silver still has a ways to go [but not much after this morning's Far East and London price action].  Here are their 6-month charts.

Silver Price Sep-2013 - Silver is Ruling the investment.

Weekly Metals Wrap

Gold Price Graph-07-09-2013

Gold Analysis August 30, 2013 Forecast

Gold Price Chart of week

The gold price has exploded in India since the low hit on June 28th, increasing a whopping 30% in the span of only 2 months! The culprit is likely the rupee collapse, which has been equally as stunning, falling by 15% against the dollar over the same time period. Further contributing to the increase in the gold price has been the escalating tension in the Middle East that has driven demand for safe haven assets.

Silver Price Aug-23 Graph

Gold Price Graph-23-08-2013

India mulls leasing of IMF-bought gold

The Indian government is deliberating whether or not to lease the 200 tonnes of gold it bought from the International Monetary Fund  in the international market to earn dollars.

The Reserve Bank of India (RBI) purchased the gold from the IMF for an estimated price of around $6.70 billion in 2009, and under the IMF’s limited gold sales programme.

"The deal was misinterpreted by many at that time, that it could further inflate the gold price, when the price was already at a ruling high. India’s purchase of gold was a reserve management strategy,'' a banking official told Mineweb. He added that globally, central banks were showing an increased interest in diversifying their holdings, to protect against a slumping dollar.

This story was posted on the mineweb.com Internet site earlier this morning...and I happened on it just before I hit the 'send' button on today's column.

Gold Price chart 16-08-2013

Gold Price Grpah 13-08-+2013

Here's the 6-month gold chart, and it looks very much like JPMorgan is painting the chart to look as if the gold price is 'rolling over' at the 50-day moving average.  As I said last week, they could hit the gold price for $100 if they wanted to, and silver for a buck or so.  But can they, or will they?  I don't know, but the chart appears to be painted to look like that outcome is inevitable.  We'll see.

Gold Price forecast 2013

Gold price - Gold and Silver charts: an update

Gold and Silver charts: an update

GOLD- India hikes import duty.

The government today hiked the import duty on gold and platinum to 6 percent from 4 percent with immediate effect - a move aimed at curbing imports of the precious metals to check the widening current account deficit .

"Government has decided to increase import duty on gold and platinum from 4 percent to 6 percent with immediate effect," Department of Economic Affairs Secretary Arvind Mayaram told reporters.

He further said the government will link Gold Exchange Traded Fund (ETF) with gold deposit scheme, which will enable mutual funds to unlock their physical gold and invest in gold- linked schemes offered by banks.

"The changes proposed to the Gold deposit scheme will make it attractive for individuals to deposit their idle gold with the banks under the Gold deposit scheme," Mayaram said.

He said the changes would help moderate import of gold and help in bridging the current account deficit (CAD).

Gold imports in 2011-12 amounted to USD 56.5 billion and in the current financial year, till December, they are estimated at USD 38 billion.

Mayaram further said that the government will effect consequential changes in the additional customs duty and  excise duty on gold dore bars, gold ores and refined gold.

"The duties will be reviewed after sometime if there is a moderation in the quantity of gold that is imported into the country," he said. Gold was trading at Rs 30,935 per 10 grams today.

The move to link Gold ETF with deposit schemes will help increase physical availability of gold in the market, as a part of the gold lying in stock will be brought into circulation meeting the demand of gems and jewellery trade.

"Consequently, there will be a moderation in the quantity of gold that is imported into the country," Mayaram said. He said the minimum quantity of gold that may be deposited into the Gold deposit scheme would be reduced and the minimum tenure would be brought down to six months, from the present three years.

Market regulator Sebi and the Reserve Bank will come out with notifications on Gold ETF and gold deposit schemes in two to three weeks. Gold ETF is provided by Mutual Funds (MF), in which the units are backed by physical gold held by the MFs.

Gold deposit schemes are offered by a number of banks, in which gold deposited by client is lent by the banks to the gems and jewellery trade.
The announcement, which follows concerns expressed by Finance Minister P Chidambaram over rising imports of gold, comes nearly a month before the Union Budget on February 28.

Traditionally, India has been the world's largest consumer and importer of gold. Outflow of the foreign exchange on gold imports is impacting country's CAD, which has widened to USD 38.7 billion or 4.6 per cent of the GDP in the first half of the current fiscal.

Gold price in 2013 Rising investment demand impacts.

Investment demand is set to drive gold in the first half of the current calendar year on loose monetary policies and burgeoning sovereign debt across global economies. Global consultancy firm Thomson Reuters GFMS in its latest Gold Survey 2012 forecast average gold price to rise to $1800 an oz for first half year ending June 2013.

According to Kitco.com, the forecast consists of 6.7% rise from the level of $1686.85 an oz average price recorded in the second half of 2012 and over 9% spurt from $1650.80 an oz the yellow metal had recorded in the comparable period last year.

Gold is likely to range-bound in the market on Tuesday.

Gold is likely to range-bound in the  market on Tuesday as it could be caught between price rebounding in the global market and a drop in the dollar.

In early Asian trade, gold increased to $1,653.05 an ounce after having dropped below $1,650 in overnight trade. Gold for delivery in February, however, was quoted at $1,648.80.

The yellow metal gained in Asia on signs of buying by China that is fast turning out to be the biggest buyer in the global market.

On the other hand, the dollar dropped against the basket of currencies. A falling dollar makes imports of commodities such as gold, crude oil and vegetable oil cheaper.

In the domestic market on Monday, gold for jewellery (99.5% purity) was up at 30,650 for 10 gm, while pure gold (99% purity) closed higher at Rs 30,790.

The oils and oilseeds complex is likely to gain as soyabean increased on the Chicago Board of Trade overnight on fears that reserves held by the US dropped to a nine-year low following a drought that is seen as the worst in the last 50 years.

Soyabean for delivery in March was up at $13.88 a bushel.

Crude palm oil on Bursa Malaysia Derivatives Exchange closed lower than $800 a tonne on Monday for the active March contract. It ended at 2,418 ringgit ($795.52) a tonne.

The grains complex is likely to see a rise on the heels of reports of fall in US reserves.

On CBOT, wheat for delivery in March ended at $7.52 a bushel, while corn for delivery the same month closed up at $6.85 a bushel.

Crude oil and natural rubber will likely gain on global cues. Crude oil opened higher in Asian trade on reports of higher refinery operation.

Brent crude oil for February was up at $111.43 a barrel, while NYMEX crude ended higher at $93.17 a barrel.

This could see natural rubber up as its alternative synthetic rubber derived from crude oil will quote higher.

Keywords: gold prices, Chinese buying, rupee dollar movement, Chicago Board of Trade, oilseeds, Brent crude oil, NYMEX crude

Gold Price chart.

Chart indicates the bullish move,which means the long-term bull market is still intact.

Gold Price rally continues despite cut in forecast 2013

The gold markets had a back-and-forth week during the previous five sessions.The low volatility has returned to the precious metals markets.

All Major banks now expects gold to average $1,856 an ounce and in 2014 to $1,900/oz, reductions of 12% and 5% respectively on its previous forecasts.

Every one predicts  bullish of gold over the long term.

On today’s agenda: Euro Area unemployment rate, German Factory Orders, Euro Area unemployment rate, China’s Trade Balance, and China New Loans.

Gold Price outlook for Jan-2013

Following positive news can hit the gold price to new heights.So watch out.

08:15 – Spain and Italy’s Manufacturing PMI

09:30 – GB Manufacturing PMI

15:00 – U.S. Manufacturing PMI

Day after Tomorrow
08:00 – KOF Economic Barometer
09:00 – Euro Area Monetary Development
13:15 – ADP estimate of U.S. non-farm payroll
13:30 – U.S. Jobless Claims Weekly Report
19:00 – Minutes of December’s FOMC Meeting


Here are several factors that may have pressured down of gold and silver prices during the month:

1. The recent U.S non-farm payroll report was well above 120k and tend to be negatively linked with gold and silver prices;
2. Several U.S reports were positive and showed progress for the economy: the Philly Fed indexhiked, retail sales also increased. These reports may have pulled up the USD;
3. The decline in the U.S jobless claims during most of December;
4. The slow deprecation of the Indian Rupee may have pulled down the demand for gold in India, among the leading importers of gold;
5. The improvement in the U.S as presented by the rise in housing starts and U.S GDP; this slow growth is likely to cut the odds of the FOMC intervening again in the near future;
6. The depreciation of several currencies including Aussie dollar during December;
7. The moderate decline in the U.S money base during recent months (see below for more)

Finally If the U.S stocks markets will rally this month (January effect), then they could pull down gold and silver. 

Gold Price rebounded from intraday lows.

After last-minute talks to end the U.S. "fiscal cliff" crisis showed signs of progress."I still believe at the end of the day the talks on the fiscal cliff should go through but of course not without some twists and turns ( by top 10 expert from Singapore).Could be the best time by Gold. as per technical analysis price cannot drop further.

The problem with forecasting gold prices.

Gold will top $2000’

If you remember, at the beginning of the year, there was a veritable chorus about how global gold prices, after 12 straight years of gains, would soar again in 2012.

Top global names in banking and broking, including UBS, HSBC, Barclays, BNP Paribas and Merrill Lynch, were in unusual agreement that gold prices would top $2,000 an ounce in 2012.

That didn’t happen. Instead, gold spent most of the year trying, without success, to break past $1,800 levels. Global gold prices finally languished at about $1,660 by year-end having notched up just a 6 per cent gain for 2012.

The problem with forecasting gold prices, or indeed the prices of any commodity, is that there is no fundamental value (based on cash flows or earnings) that can be assigned to a gold bar or a sack of grain.

Unlike equities or even currencies, where there is such a thing as intrinsic value that tethers the market price, commodities have no valuation metrics.

What adds another nice twist to commodity price forecasts is the China factor.

Given that China plays a big role in deciding the demand picture for a range of commodities, how a commodity behaves through the year often depends on how the Chinese economy is faring at the moment. That is a wild card that even best of forecasters have not managed to master.

‘GDP growth at over 7 per cent, inflation below it’

If demand for them exceeds supply, desperate buyers may be willing to buy at any price. And if supplies overwhelm, their prices can tumble like ninepins.

This was despite a supportive market, where global central banks obliged with a QE3 which was much grander and larger in scale than any previous liquidity-infusing exercise.

So Finally your money, you check before you play with it. All Tech  analyst  are not rich. 

Gold Monthly Fundamental Forecast December 2012

One need to wait and watch New Year, happy new year expected for Gold.
Gold eased off as safe haven demand lessened and traders added more risk to their portfolios. Gold has been in a fairly volatile state to close the month. Market strategists have attributed the gold price’s inability to break out of its trading range to a confluence of macroeconomic factors – including the U.S. fiscal cliff situation, the seemingly never-ending European sovereign debt crisis, slower economic growth and lower demand for gold in China, and movements in the U.S. dollar as a safe haven during time markets shift into risk-off mode.

Gold could reach $5000.

Comments and opinion list

1. Pierre Lassonde: $4,000 – $5,000;
www.commodityonline.com/news/Panic-effect-could-push-Gold-to-$4000-or-$5000-11770-3-1.html
2. Willem Middelkoop: $4,000 – $5,000;
www.youtube.com/watch?v=lvFSyS985I8
3. Mary Anne and Pamela Aden: $3,000 – $5,000 (by February 2012);
www.adenforecast.com/articlesInterviewDetail.php?id_publicacion=19
4. James Dines: $3,000 – $5,000 (in June 2011);
www.commodityonline.com/news/James-Dines-Dig-gold-out-of-rare-earths-24391-3-1.html
5. Goldrunner: $3,000 – $5,000 (by 2012);
www.gold-eagle.com/editorials_08/goldrunner022308pv.html
6. Bill Murphy: $3,000 – $5,000;
www.gata.org/8960
7. Bill Bonner: $3,000 – $5,000;
www.equitymaster.com/dailyreckoning/detail.asp?date=9/30/2010&story=1
8. Peter Degraaf; $2,500 – $5,000;
www.kitco.com/ind/degraaf/sep182008.html
9. Eric Janszen: $2,500 – $5,000;
www.itulip.com/forums/showthread.php/15580-Before-the-FIRE-Gold-Update-Is-1-237-the-new-720-Eric-Janszen?s=e262248557652f4215a3f903694790d4
10. Larry Edelson: $2,300 – $5,000 (by 2015);
www.munknee.com/2010/08/gold-will-go-to-5000-and-the-dow-to-above-27000-by-2015/
11. Luke Burgess: $2,000 – $5,000;
www.wealthdaily.com/articles/gold-etfs/2409
12. Jeff Nichols: $2,000 – $5,000;
www.mineweb.com/mineweb/view/mineweb/en/page33?oid=111268&sn=Detail&pid=102055
13. Jim Sinclair: $1,650 – $5,000 ($1650 by January 14, 2011 OR $3,000-$5,000 by June 2011);
www.arabianmoney.net/gold-silver/2010/09/08/jimsinclair-on-why-gold-is-going-to-1650-by-early-january

Gold ETFs continue to drive investor interest

Even as gold prices are running high currently, investor demand for gold exchange traded funds (ETFs) will be robust in the Indian market, said S&P Dow Jones Indices (S&P DJI), a global indices player.

According to S&P DJI data, gold holding under gold ETFs in India over the past four quarters has stood at 165 tonnes. This is roughly a fifth of India’s import of gold this year. Over the past four quarters, India has imported 761 tonnes gold, according to World Gold Council figures.

Gold demand in India and China has grown this year more than the five-year average demand growth in these countries. In the US, the growth has declined from the five-year average,” said Gunzberg in a conference call on Tuesday.

“ETF market in India has grown by about 87 per cent since September 2009, while the number of investors has grown by 71 per cent during the same period. There are about 34 ETFs in India with Goldman Sachs , Reliance , Kotak and Motilal among the major players,” said Ghosh.

Silver to Rise 38 Percent in 2013

A Market analyst said that “a rebound in investment demand stemming from continuing loose monetary policies is expected to drive silver prices towards and possibly over $50 during 2013.
As the week comes to an end, Comex December silver prices are trading at $32.45, a slight decline from yesterday. For the week, prices are off about 1%.
Recent economic data and concerning news from abroad have hit precious metals this week, leading to their declines. 

Indians Impact in silver.

"Silver has proved to be the preferred substitute with most retail buyers this Diwali. Customers came in asking for silver coins, corporate gifting products, small utensils to be used at home and for silver items to conduct puja (the ceremony for prayers)."

Gold Exports by Hong Kong. Why exporting?

The gold price popped about five bucks at the open of trading in New York on Sunday night...and then didn't do much until the 8:20 a.m. Comex open the following morning. Then the price came under some selling pressure, with the low of the day coming around 12:15 p.m. Eastern time.

The tiny rally into the 1:30 Comex close, got sold off immediately in electronic trading...and the gold price closed down two bucks from Friday...at $1,728.80 spot. With volume as light as it was...around 70,000 contracts net...I wouldn't read a whole heck of a lot into yesterday's price action.

The Hong Kong government statistics show "Exports to China", "Re-Exports to China" and "Imports from China"."

"What the other analysts are doing is adding up the Exports and Re-Exportsbut not taking away the Imports to arrive at a Net Imports number."

"So Chinese Net Imports = Hong Kong Exports plus Hong Kong Re-Exportsless Chinese Imports"

"In other words China sends some of it's gold imports back to Hong Kong for further value adding before re-importing it again."

"This is a common occurrence and if you check the Hong Kong Government Statistics, you'll find lots of countries doing it."

who is manipulating the gold price ?are golf investors in risk ? we will wait and watch.

Gold prices eased amid pressure from a stronger dollar.

On other topics relevant to the gold market, just over half of the participants expect the U.S. Federal Reserve to launch another round of quantitative easing, and 56 percent of them see China's economy growing between 7 and 8 percent in 2013.

China is expected to overtake India as the world's top gold consumer, as demand in that country has been resilient, although the pace has slowed from the past couple of years.

Thirty-six percent of conference participants expect Shanghai to become Asia's precious metals trading hub in the next year, topping Hong Kong and Singapore, which are vying for the position.

Gold price forecast for 2013

World gold market is to create economic trends as important than the oil market. In recent years, leading international financial experts predict a steady increase in gold prices. So, the bank JPMorgan expects that by 2014 the value of an ounce of gold will reach $ 2000.

Another reason for the growth rate of gold – the world economic crisis. It is in a period of instability in international financial markets traditionally increases the price of gold as an ancient equivalent.

India.

“Sales have been abysmally low this year…there is an almost 50 percent dip in sales as compared to previous years and the sales never picked up after the strike was called off,” adds Goyal, referring to the three-week strike by Indian gold dealers that started in March after the government increased duty on gold imports and extended a sales tax to unbranded jewelry.

Indian gold demand could fall to 550 tonnes next year – compared to more than 900 tonnes over the whole of 2011 – new Bombay Bullion Association president Mohit Kamboj said Tuesday, adding that any import duty hikes could push demand down further.

So . Gold has to rise  further. Watch.

Gold is Winner

Obama is good for gold: Target $3,500 by 2013.

So now that Barack Obama is all set for a second term as President of the United States of America, gold is set for another rally. As I write this, gold is quoting at $1,723.2 per ounce (1 troy ounce equals 31.1 gm), up $40, or 2.4 percent, in a day.
And this rally is likely to continue, with some gold bulls talking of a price of $3,500 by 2013-end.

How so?

The analysis is simply an historical look at how much gold prices fluctuated since President Nixon took the U.S. off the gold standard in 1971.

 

Gold has done quite well under Republican presidents, rising over 121% during Republican presidencies over the last 40 years.

Gold price Downwards for short time, Reasons.

Storm's effects

Pent up demand driven by bargain hunters and short covering investors sent gold, silver and the other precious metals up Wednesday, despite trading that is still on the thin side because of the storm's effects.

 Greece 

There was also some good news for gold insofar as the EU and Greece seem to be finally moving toward a resolution of that small country's financial difficulties. That would mean a strengthening of the euro, generating a negative pressure on the dollar, and therefore positive for gold.

US employment

Expect the next few days to remain sluggish ahead of US employment figures on Friday and because of the waiting game we are all playing regarding the upcoming US elections and change of leadership in China.

However, from our vantage point, the lynchpin for gold, and all matters economic, appears to be Europe.

Gold will be double valued during 2015, So Plan.

The main point I wanted to make is that globally, all currencies are devaluing with respect to gold. Hence, if you are a large corporation with lots of cash in the bank and are not investing in any projects today, you will be losing purchasing power over the next few years. Your cash will purchase less and less over the next few years. Construction costs will go up due to raw material prices rising and hence the prices in secondary property market, residential, commercial and industrial property prices will follow. Energy and food prices will climb with the rise in the price of gold. You will find that, for example, if you planned to undertake a $10,000,000 project at today’s price, it would probably cost you $15,000,000 to $20,000,000 or more in a few years’ time. Then you may need to run to the bank for a bridging loan and share your profits with the bank by making interest payments or just abandoned any expansion plans. If you had invested the money today you probably could have rolled the money to generate sufficient profits to offset the loss in purchasing power.

This gold price climb is causing the window for business opportunities to close within a few more years if your business has a limited amount of capital.

Gold & Silver Rise as China's Long-Term Demand Forecast to Keep Growing .

WHOLESALE PRICES to buy gold rose to 7-session highs in London on Thursday morning, touching $1726 per ounce even as new data showed US employment rising at its fastest pace since February.

The private-sector ADP payrolls report said the US added 158,000 jobs in October. Earlier data from the manufacturing sector in China, the world's #2 gold consumer, showed its slowdown to be easing.

However, "Over 17% of survey respondents reported a fall in the volume of new export orders," said the new Purchasing Managing Index report from HSBC/Markit Economics, "and just under 10% noted an increase."

Two-thirds of Chinese businesses reporting quarterly results to the stock market have seen a sharp rise in unpaid bills according to the Financial Times.

The People's Bank of China has this week pumped a record $60 billion-worth of liquidity into its domestic money market.

"Gold has been finding support on approach of $1700," says today's note from Standard Bank's commodities team.

Gold slips lower on technical selling ahead of U.S. jobs data.

Gold edged down towards $1,700 an ounce on Friday, after a fall through an important support level triggered some stop-loss selling as investors anxiously await a key U.S. labour market report.
Short-term technical analysis also painted a gloomy picture. Spot gold could fall to the October 24 low of $1,698.39 an ounce as a rebound from this level is complete, As per market analyst.

If Obama Gets Re-elected Gold Is Going To Go Through The Roof”

Gold Prices broke back above $1,720 an ounce as U.S. traders returned to their screens after a two-day closure following a storm that battered the U.S. east coast. 
Global gold edged up but was poised to snap a four-month winning streak, with investors staying on the sidelines ahead of key US employment data and in the wake of Hurricane Sandy.

Gold prices steady in India.

importers wait and watch.

Gold importers in India booked a few stray deals, not rushing in to buy, as prices continued to be supported by a weaker rupee and firm overseas markets ahead of festivals.

The most-active gold for December delivery on the Multi Commodity Exchange (MCX) hit a high of Rs 31,149 per 10 grams before trading almost steady at Rs 31,080 by 1:54 pm.“There are no deals as the rupee is on the higher side and even gold is holding higher up at $1,710 (an ounce),” said a dealer with a private bullion importing bank in Mumbai.

Gold prices continued to remain firm.Range $1800 level.

China Leadership  transition.

Gold price forecasts for 2012-13

Citigroup raised its gold price forecasts for 2012 and 2013, saying ongoing global economic issues are causing gold to remain a favored asset for investors.

With continued concerns over the economic health in the developed world, safe-haven demand has seen renewed investor interest in gold-linked securities," analysts at the bank said in a note dated Sept. 24.

Citi also raised its year-end price forecasts for most precious and base metals.

The bank increased its 2012 price forecasts for gold, silver and platinum by about 2 percent, 5 percent and 1.5 percent, respectively, while it cut its earlier forecast for palladium prices by about 1.7 percent.

For 2013, Citi raised gold and silver price expectations by over 3 percent each, and those of platinum and palladium by over 6 percent each.

Illegal strikes in South Africa, mine closures and project delays were seen causing supply issues in the market for platinum and palladium, analysts at the bank said.

Base metals were mostly forecast about 1 percent higher for 2012, with lead expected to rise 4.3 percent from earlier. Nickel was seen falling about 1 percent for the year, from previous forecasts.

For a list of the latest price forecasts of Citigroup on precious and base metals,

Gold price set for more gains after consolidating

* South Korea, Paraguay add gold to holdings.

Gold edged higher on Tuesday, defying a steady dollar, following data that showed central banks added to their bullion holdings in July and August, led by South Korea and Paraguay.

Spot gold rose 0.2 percent to $1,766.84 an ounce by 1200 GMT. The price has risen by 4.6 percent so far in September and is on course for a fourth consecutive monthly gain.

The rise has been sustained by anticipation that the U.S. Federal Reserve will keep credit flowing through the economy and interest rates low by buying government bonds.

"Ultimately, I think it's quite likely we will get above $1,800 before the year-end, so maybe a month of sideways trading possibly and then generally trending higher in the next six months to a year.

So far this year, central banks have added a net 262.1 tonnes to their reserves, compared with 203.39 tonnes in the first eight months of 2011.

Platinum edged up by 0.7 percent to $1,624.99 an ounce, while silver rose by nearly 1 percent to $34.24

Gold Will Zoom Further.

The Federal Reserve said it would purchase $40 billion per month in mortgage-backed securities indefinitely. In addition, the Fed will continue Operation Twist – the buying of longer-dated US Treasury notes and bonds. When all is totaled, the market is looking at about $85 billion a month in government bond purchases for an unlimited period of time.
Even ignoring Operation Twist, the Fed will add $40 billion a month, or $480 billion a year, to its balance sheet.

That is exactly what happened in the last five years too...the Fed's assets doubled. And in what should not be a surprise to gold investors, the price of gold also doubled! For the past decade or so, gold has tracked the increase in Federal Reserve's assets. Do not be shocked if that pattern continues over the next five or 10 years, too.

Gold and Silver Zooms

Normally international gold prices rise on the back of a weakening dollar. Currently, while the dollar's weakness continues to push up gold, the dollar has strengthened against the rupee. That is why Indian prices are higher than the world market. It is a pure currency play," says analyst  at  Fund Management traders asso.

Alarming US debt of $16 trillion USD and growing fast at the galloping rate of about $125-$130 billion per month or about $4.33 billion per day. Japan is in no better shape with extremely high debt. Just like the housing bubble burst unexpectedly on the world in 2008, this debt bubble will explode very soon. When that happens, people, Governments, Central Banks, investors and companies will rush to Gold to protect their savings and balance sheets. My forecast of Gold hitting $5,000 to 7,000 an ounce may then turn out to be too modest and Gold may zoom even higher than what I am predicting.

Gold Edges Higher Ahead Of German Court Ruling

Gold futures edged up ahead of the court decision in Germany and amid growing expectations for fresh monetary measures from the U.S.

Gold for December delivery rose $2.90 to $1737.70 an ounce in electronic trading on the Comex division of the New York Mercantile Exchange. The German court ruling on the euro zone's bailout fund is set to take place later in the global trading day Wednesday.

The advance came ahead of this week's Federal Reserve policy meeting. Recently, expectations have increased that the Fed will announce more bond buying to support the U.S. economy Thursday at the end of its two-day meeting.

European stock markets struggled for direction in early trade on Wednesday, as investors got jittery ahead of the German constitutional court ruling on the fate of the euro zone's permanent rescue fund.

The main focus for investor attention was the German constitutional court ruling on the legality of the European Stability Mechanism later in the morning. The court is widely expected to approve the rescue fund, but the key question is whether the Germans will attach any conditions to a potential approval.

Market participants also looked toward the U.S., where the Federal Reserve on Thursday concludes a two-day policy meeting, with hopes high that it'll announce another round of quantitative easing.

Gold may move towards $1710-

Wed, Sep 05, 2012 at 11:19

Gold may move towards $1710-1720/oz: Emkay Comm

Gold has been doing well over the last few sessions. In an interview to CNBC-TV18, Ashok Mittal, chief executive officer of Emkay Commodities says there is a good breakout in gold. "Gold is well above USD 1,670-1,680 per ounce range. We expect that gold should go to about USD 1,710-1,720 per ounce in the international market," he adds.

Source : Money control

Rate cut will boost the market,What will happend top the rupees.

wait for the Monday .

Gold Has to reach $ 2000 to $ 2500

As per market  consultants, money manager  gold has to correct to $ 2000 to $ 2500. India has been 2nd largest buyer always. one of reason is drop is, government recently has raised the import duty.

Why Gold is dropping ?

Gold Vs Currency

It explains you have to store gold. no risk rather play with Stock market.

Gold has been real money for almost 5,000 years

Paper Money Collapsing against Gold

The problem with paper money is that governments can create unlimited amounts. This is what they have done throughout history and especially in the last 100 years and which has led to the total destruction of most currencies. Most people don’t even understand that their government makes their money worthless. Money printing gives them the illusion of being richer whilst all they have are pieces of paper with more zeros on them.  But there is one currency that governments can’t print which is gold. Gold has been real money for almost 5,000 years and it is the only currency that has survived throughout history. Gold can’t be printed and no government controls it. Therefore gold will, over time, always reveal governments’ fraudulent actions in creating money out of thin air. And this is what we are experiencing currently. Gold is not going up. Instead gold is doing what it has always done, namely maintaining its value and purchasing power.

What we are seeing currently is the total annihilation of paper money whether it is Dollars, Pounds or Euros etc. The chart below shows the US dollar against gold. In the last 10 years the dollar has declined by 79% against gold. Most currencies have declined by similar percentages. So it is an illusion to believe that gold is going up when it is the value of paper money that is going down. All gold is doing is to reflect the virtually limitless printing of paper currencies. Since gold can’t be printed, it is the only honest currency that exists. This is why many governments don’t like gold increasing in value against their paper money since it exposes their total incompetence in running their country’s economy.

Gold has potential to rise again,

Gold has potential to rise again, said Commerzbank in a commodities research note. Commerzbank AG is the second-largest bank in Germany, after Deutsche Bank.

According to the German bank, market participants viewed lower prices as a buying opportunity last week and also pointed out that the world’s largest gold exchange-traded fund, SPDR Gold Shares, had inflows of 6.3 metric tons over the past two trading days.

Analyst with Commerzbank said that, “We do not see any fundamental justification for the latest slump in prices given that real interest rates are still negative and the sovereign-debt crisis in the euro zone still remains unresolved.”

“As soon as speculative investors have completed the process of market adjustment, the gold price can be expected to resume its upswing. That said, it is too early as yet to proclaim any end of the correction phase. If gold could cross the $1,600 a troy ounce threshold, this would serve as an important signal,” Commerzbank concluded.

As of 8:21 a.m. EDT, spot gold was $5.25 softer at $1,587.6.

Source : NEW YORK (Commodity Online):

Gold continues its downward spiral to land at $1,550 an ounce

Yellow metal makes fresh 2012 lows, with analysts expecting more pain for the gold bull

Gold has all but lost its shine with the yellow metal plunging to $1,550 per ounce in early trade on Tuesday, a couple of sessions after witnessing its worst weekly drop this year.
Gold prices slumped $61.10 per ounce, or nearly 4 per cent, last week to close at $1,583.60 per ounce on Friday, May 11, compared with $1,644.70/oz that they closed at the previous week, on May 4, 2012.
Continuing the rout, gold is down more than $23.5 per ounce, or 1.50 per cent, yesterday to close at $1,560.60, and was trading lower by another $10 Tuesday morning, at $1,550.36 per ounce at 10am UAE time (6am GMT).
Locally, the retail price of 24ct gold in Dubai was fixed at Dh186 per gram Tuesday morning by the Dubai Gold and Jewellery Group, while 18ct gold can be bought for Dh142.50 per gram.
Gold has been on a downward spiral amid fears over a worsening European debt crisis and sharp losses in equities and commodities, and is trading at its 2012 low (of $1,560 per ounce, recorded on January 1, 2012).
Last Friday, the last trading day of the week, the metal came under heavy selling pressure after JP Morgan Chase & Co, an investment bank, revealed a $2bn trading loss, denting sentiment.
“Sentiment soured after JP Morgan announced $2bn in losses from its synthetic credit portfolio since the end of March,” wrote Standard Bank analyst marc Ground in his Friday’s commodities analysis daily.
“Added to this, reports that Spain was making a fourth attempt at a domestic bank rescue package and the ongoing political uncertainty in Greece, there was only one way for market to go – down,” he commented.
In addition, political and financial uncertainty in Europe, most prominently in Greece, France and Spain, kept traders’ confidence low and further squeezed precious metal prices.
Gold has now all bust lost its safe haven status, with the metal now plunging on political uncertainty whereas in the past, such worries would send punters scurrying towards the metal. Now, however, the US dollar is slowly but surely emerging as the go-to instrument for risk-averse investors.
With gold busting through its $1,578 support level, analysts aren’t too optimistic about the metal’s fortunes in the rest of the year, with most experts reckoning that it will soon fall through the next resistance level of $1,523.90, and fear that it could end up below $1,500 levels as well.
“All I’m saying is that, in my opinion, the gold price correction is not yet entirely completed. I see significant support around the $1,500/oz level, but it could drop even lower,” Marc Faber, nicknamed Dr Doom for his contrarian views expressed in the popular Gloom, Boom and Doom newsletter, said recently.
“We could have a big correction if global liquidity tightens or they stop printing money, Marc Faber said in March at the Middle East Investment summit in Dubai.