Archive for the ‘News’ Category

After reading the headlines from this mornings news outlets one would question, how can the priniting of $125B lift markets from Hong Kong to New York?   The answer is simple enough to explain yet much harder to believe.   World markets rallied Monday after Spain’s request for up to €100 billion ($125 billion) to capitalize its troubled banks and the weekend’s economic data from China.  “There’s still neither a growth plan nor Europe-wide structural reform,” said Kit Juckes, a foreign exchange analyst at Societe General, in a note. “Spain’s economy remains in depression, even if they have much better weather than London does this morning.”

Meanwhile, gold has yet to have its say in the $125 billion bailout proposal in Spain.  In early markets the yellow metal has hardly moved.  What our clients are seeking on the phones are exposure to metals while working to balance their stock and bond portfolios.  In other words, most are entering into the gold market for the first time with about 20% of their investable assets while getting into cash positions or fixed income positions with their other holdings.   If you are seeking additional exposure into the physical metals markets, please contact a Lexi Capital representative today at 800-473-1213.

 

As of 10:30 EST with gold trading up nearly $55 the market is seeing increased safe haven demand for the precious metal.   While gold bulls are ever ready to ride the surge, various political factors will likely determine gold’s long term trend.

Comex gold futures prices are trading sharply higher and have soared to a fresh three-week high in the aftermath of a much-weaker-than-expected U.S. jobs report that has quickly put U.S. quantitative easing of monetary policy back on the table. August gold futures have pushed above what was stiff psychological resistance at the $1,600.00 level. U.S. non-farm payrolls rose by just 69,000 in May, which is much less than the 150,000 rise expected by the market place. U.S. stock indexes slumped, U.S. Treasury bond and note futures prices soared and the U.S. dollar index vacillated but did back down in the wake of the jobs data.

Beyond the calls for safe haven demand, across the Atlantic the Euro continues to struggle with politicial and economic inaction.  The euro fell against the yen to the weakest level in more than 11 years as investors sought the relative safety of the Japanese currency and pushed German bond yields to record lows amid a deepening of Europe’s debt crisis.

For the perma gold bears out there, bad news from the American public.  Gold is agreed upon as the safest investment in a recent national poll.

For the second straight year, an annual Gallup poll has found that a plurality of Americans believe gold is the single safest long term investment option. Safer than savings accounts. Safer than real estate. Safer than stocks. A full 28 percent of adults ranked gold as their top choice, down from 34 percent last year, a drop just outside the five point margin of error. It was most popular among older Americans, those without a college a degree, and individuals who earned between $30,000 and $75,000 a year.

 

When Goldman Sachs stands by their call for a QE3 despite Federal Reserve Chariman Ben Bernanke’s reluctance to tip his hand in any way gold bulls and bars have all the fodder they need to dismiss the other side as unbalanced prognosticators to say the least.

Analysts at Goldman Sachs echoed Bank of America’s cautious economic outlook in a recent note to clients and discussed the positive implications for the gold price.  The firm wrote it expects the price of gold to resume its ascent “as subdued US growth reduces the market’s expectations of real rates and perhaps, most importantly and counter to much of the current market feeling, suggests that the anticipated North American growth slowdown will see a return by the U.S. Fed to some form of quantitative easing.”  Goldman also reiterated its gold price target of $1,840 per ounce

June Comex gold futures remain locked within a minor downtrend pattern off the late February high, but the intermediate and longer-term secular bull trends remain bullish for the yellow metal。

“Ultimately, I think there is going to be a really good buying opportunity in gold,” said Dave Toth, director of technical research at R.J. O’Brien. “The longer-term secular bull trend in gold remains up and that has been reinforced by the extent and impulsiveness of the December-February rally. Since then, we’ve been approaching sell-off attempts as corrective,” Toth added.

Toth drew a Fibonacci retracement on the daily chart off the December-February rally. See Figure 1 below. “The February-early April sell-off has held the 61.8% retracement, which seems to reinforce the broader bull market assessment,” Toth added.

Debuting sales figures are in for the five 2012 Proof American Gold Eagle products. Between the Gold Eagles’ release on Thursday, April 19, and through to Monday, April 23, the United States Mint registered total sales of $8,245,152.00.

As has been the tradition, proof American Gold Eagle products include coins in four sizes — one ounce, half ounce, quarter ounce and tenth ounce with respective face values of $50, $25, $10 and $5. The Mint also offers a four-coin set. The opening performances for each of the products follow:

2012 Proof American Gold Eagle Coin Sales Debut PRODUCT LIMIT MINTAGE LIMIT OPENING PRICES COINS SOLD 4-DAY SALES 1 oz 30,000 60,000 $1,935.00 1,757 $3,399,795 1/2 oz 10,000 40,000 $981.00 449 $440,469 1/4 oz 12,000 42,000 $503.00 433 $217,799 1/10 oz 25,000 55,000 $215.50 1,394 $300,407 4-Coin Set 30,000 N/A $3,585.50 1,084 $3,886,682 Total Coins Sold 8,369 $8,245,152

 

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