Andrew Su, CEO at Compass Global Markets, explains why he thinks Wednesday's peak in oil prices are temporary and is expecting prices to recede to $95 a barrel by the end of the first-half.
Frank Holmes CEO and Chief Investment Officer U.S. Global Investors: 'Continuing a Winning Formula for 2014' >LINK
Gold Market After shedding some 30 million ounces of gold from a high of 85 million ounces, David Rosenberg of Gluskin Sheff believes it is fair to ask whether the fire sale is done. According to Rosenberg, sentiment could scarcely be more negative, with even the good macro data looking like it is priced in. What’s most interesting to see is that gold and bonds declined in the same year – a very rare phenomenon. The most recent memories of this trend occurring have coincided with gold market bottoms, in which market players shrug their shoulders at the mention of gold.
Opportunities
The Swiss National Bank’s gold holdings are the target of a national initiative and called by citizens collecting signatures, demanding that at least 20 percent of the central bank’s assets be in the form of gold. The measure would also bar the central bank from selling any of its holdings and would require the repatriation of the SNB’s gold holdings with the Bank of Canada and the Bank of England. Valuations of gold miners are approaching their cheapest relative to book value in at least two decades, precisely at the time when free cash flow generation has bottomed and cost reductions are kicking in. The current valuations present opportunities for junior miners to acquire mining assets, just like Northern Star Resources did by purchasing the Plutonic mine from Barrick, based solely on the value of the proven and probable reserves.
The recent shift in Canadian government policy is having a pronounced effect on the value of the “loonie,” or the Canadian dollar. The Canadian government appears to have shifted gears and decided that a weaker currency, via monetary policy accommodation, is now required to hasten the rebalancing of the Canadian economy. The implications for Canada’s exporting industries, which encompass gold producers, are enormous. We discussed earlier how a decrease in the value of the Canadian dollar could effectively erase any losses arising from declining gold prices for those producers with large, Canadian portfolios such as Agnico Eagle Mines. ITZ favorite play in the metals sector in the past has been Silver Wheaton SLW, $21 attractive entry level.... targeting 200ma near term & $30 long term price objective. chart
A report that China's central bank will buy another $7 billion of gold bullion from the IMF, which has been periodically raising funds by the sale of its precious metals reserves, has been touted as helping to put a floor under the price of gold at around $1,100 an ounce Wednesday.>>READ FULL STORY If a central bank buyer for the IMF gold is announced, I continue to believe, as I posted on Wednesday, that gold is set to run back to $1200. Todays actions will mark the beginning of the end of this minor correction.
From CNBC Fast Money:I just can’t feel bullish, says Dennis Gartman. I think Europe’s problems are long-term and in fact, I think it’s possible the EU could ultimately dissolve. But whatever the outcome, the troubles in Europe are likely to hang over markets for a long time and that’s bearish.
Considering the economic and political circumstances in Europe I’d get long gold.
The recent IMF announcement of 191 tonnes gold sales in the open market, shouldn't cause alarm. IMF gold sales are just an attempt to manipulate the gold market. Gold is hitting record highs in Euro and UK pound. We'll see the samething we did back in the '70s...gold will rise because of IMF selling. Soros has doubled his bet in gold despite saying gold is the ultimate asset bubble and Paulson has started a gold fund. Gold has rallied strongly despite of the strong manipulation. China got caught off guard last year as India purchased gold. Lets face it, central banks don't announce when they plan on buying gold and don't when trhe sell either. Time and time again we have seen that the CBs buy gold during episodes of price weakness. Any Asian Central Bank that missed buying the gold as a result is certainly not going to panic and rush into the market to obtain it. >>READ & >>READ
Gold rose 2.4% for the week and moved out of the triangle formation which has been constraining it since December. It is trading over it's 50 day moving average. Stochastic is into overbought territory where it can remain for a long time. MACD has broken downtrend, also a 'Bullish Divergence' pattern is in. Technicals all point to a substantial rally, taking gold to retest the $1,200 level. Below chart has gold in Indian Rupee. Go to this link to see how gold is performing in other global currencies >>CHART
Silver rose 5% for the week and repaired some technical damage by moving back above the 200 ma. My upside target for silver is $17, which coincides with retracement levels and the 50ma. Stochastics also give silver plenty of room to run higher.
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