Gold and Oil Moving Higher Steadily

Gold prices continued to move steadily higher, something which has been happening for the past 3 weeks and it is no longer a surprise. The prices have been moving slow and steady and that is one of the reasons why there has not been any shock and awe with regard to its movement. The euro has also been moving at almost the same speed higher but the euro seems to be getting all the attention as the volatility in the currency is much higher due to the pullbacks, corrections and then the bounces. On...
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Fed says stimulus wind down to begin ‘relatively soon,’ leaves rates unchanged

The Federal Reserve laid the groundwork Wednesday to begin winding down shortly the massive stimulus program it embarked on to rescue the economy from the financial crisis. As expected, the Fed also unanimously declined to raise interest rates this month. After its two-day policy meeting, the Federal Open Market Committee released a statement containing key language that points to starting the move in September. At that time, the central bank will begin rolling off the $4.5 trillion portfolio...
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His Gold Calls Have Been Quite Accurate; Now He’s Calling The Bottom

(Kitco News) - It seems the best way for investors to make money in the gold market lately is by being on the bearish side, but according to one analyst with a strong track-record, this trend could change. “Gold dropped 5 weeks in a row after my May 29th bearish call. All indicators tell me that a trend reversal is imminent,” noted Lejun James Shao, founder of www.myIRAs.net, in a Seeking Alpha post Wednesday. So far this year, Shao’s gold calls have been “quite accurate,” as he put it. ...
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His Gold Calls Have Been Quite Accurate; Now He’s Calling The Bottom

(Kitco News) - It seems the best way for investors to make money in the gold market lately is by being on the bearish side, but according to one analyst with a strong track-record, this trend could change. “Gold dropped 5 weeks in a row after my May 29th bearish call. All indicators tell me that a trend reversal is imminent,” noted Lejun James Shao, founder of www.myIRAs.net, in a Seeking Alpha post Wednesday. So far this year, Shao’s gold calls have been “quite accurate,” as he put it. ...
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How The US Sets Global Oil And Gas Prices

Tight oil and shale gas – price cap and collar The US is increasingly influential in price formation for crude and global gas markets. But tight oil and shale gas, through LNG exports to Europe, are likely to be cap and collar in their respective markets for the next few years – tight oil setting the ceiling price, US gas the floor. The big three – Saudi Arabia, Russia and the USA - have jostled for position as the world’s leading oil producer since the start of the new millennium. The ast...
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Gold rebounds from 6-week low as dollar sags ahead of Fed speeches

Gold rose on Tuesday after hitting a six-week low in the previous session as bargain hunting set in and the dollar fell before speeches by U.S. Federal Reserve officials. Fed officials have signaled that they plan to continue on their current trajectory of interest rate hikes despite a slow down in inflation. However, investors are skeptical and market pricing shows only a 40 percent chance of a rise in December. A huge sell order totaling 1.85 million ounces pushed gold to a six-week ...
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Gold Rebounds As U.S. Dollar Sells Off

(Kitco News) - Gold prices are moderately higher in early U.S. trading Tuesday, supported by a sharp daily drop in the U.S. dollar index. Short covering in the futures market and perceived bargain buying in the cash market are also featured after prices Monday hit a five-week low. August Comex gold was last up $4.60 an ounce at $1,251.00. September Comex silver was last down $0.079 at $16.71 an ounce. Focus of the marketplace today is on speeches by major central bankers. European Central Ban...
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Gold Prices Correct As Expected

Gold prices had some price action that was on expected lines. We had mentioned in our forecasts over the last few days that the prices would find some support in the 1240 region and once it began to consolidate for some time over there, it was clear that it was preparing itself for a bounce and thats what we saw as the prices began to bounce. We had then set our targets near the 1260 region and had expected the prices to reach there and then begin to start correcting again as the next leg of the...
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Oil Prices Fall Through Important Support, Whats Next?

We had mentioned that it was an important event when the oil prices crashed through the $50 mark a few weeks back. This was immediately after the OPEC meeting when they decided not to cut the production by more than what they had already been doing since the start of the year.This was a sign to the markets that they were willing to support the oil prices only to an extent and that they would be leaving the rest of the control to the incoming production and inventory data. We have since seen the ...
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Fed Rate Hike Hits Gold Prices

Last week’s rate hike by the Federal Reserve negatively impacted gold prices in the days leading up to and following the announcement on June 14, as illustrated by the chart below. London Fix Gold Prices, Source: Kitco The Fed cited strengthening household spending and business fixed investment amid steady job growth as reasons for the rate hike, in order to facilitate employment growth while maintaining price stability. Moreover, the Fed is expected to raise rates by an additional 25 ...
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