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Mark is the Chief Editor at TradePreciousMetals.com. Mark covers various aspects related to the precious metals market including supply and demand trends, investment analysis particularly technical analysis, and junior mining plays. Visit TradePreciousMetals.com for latest investment analysis... More
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  • Gold, Silver, Platinum Bounce Back After 4-Week Slide

    The impending fiscal crisis fueled the growth in the gold, silver and platinum spot market during the last week. The precious metals equities market, however, showed mixed results in last week's trading.

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    Silver gains 5.26 percent; leads all gainers

    Gold, silver, palladium and platinum bounced back from a 4-week slide closing the week higher. Silver led the gainers advancing by 5.26 percent followed closely by gold which closed 2.96 percent above its week open price. Palladium and platinum were also modest gainers gaining 1 percent and 0.45 percent respectively.

    Very broad macro type commentary… Need some more specific aspects.

    Precious metal ETFs track the spot; post healthy gains

    Gold and silver ETFs followed the spot price accordingly as most of the major players ended up in positive territory this week. Mirroring the silver spot, ProShares Ultra Silver (AGQ) led all gainers by posting an 8.96 percent gain followed by iShares Silver Trust (SLV) which closed the week at 4.54 percent. The primary gold ETFs were largely range-bound with ProShares Ultra Gold (UGL) leading the way at 5.64 percent while SPDR Gold Shares (GLD), iShares Gold Trust (IAU), and Market Vectors Gold Miners ETF (GDX) tabbed more modest gains at 2.81 percent, 2.75 percent and 2.59 percent respectively. Of the gold and silver ETFs on our radar, only Global Silver X Miners ETF (SIL) closed in the red posting a 0.08 percent dip.

    On the platinum and palladium ETFs front, trading remained more modest as none of the major names broke the 1 percent barrier. E-TRACS UBS long Platinum ETN (PTM) rallied to close at 0.98 percent while ETFS Physical Platinum Shares (PPLT) bounced back from last week's loss with a 0.90 percent gain. ETFS Physical Palladium Shares (PALL) failed to rally to close the week as it fell 0.42 percent at the closing bell.

    Market forecasts growth in precious metal futures

    Futures benefited from the spot price rebound this week as COMEX contracts for silver, gold and platinum all got favorable forecast ratings from the market. With the price expected to continue rising as investors shy away from risky investments, the futures are once again becoming an attractive bet for traders who want to put their money in precious metals.

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    Equities and stocks show mixed results; Lonmin's slide continues

    In line with greater investor caution towards stocks and equities, precious metals equities turned in a mixed bag of performances this week as investors relied more heavily on company track record and recent reports as opposed to closely tracking the spot. Kinross Gold (KGC) led all gainers, up 11.93 percent to close above $10 per share for the first time in two weeks. Barrick Gold (ABX), Goldcorp Inc (GG), and Silver Wheaton Corp (SLW) also turned in positive numbers closing 2.82 percent, 1.92 percent, and 3.62 percent respectively.

    Headlining the long list of losers are Couer dAlene Miners Corp (CDE) and Lonmin PLC (LMI.L) which fell 18.47 percent and 8.85 percent respectively. Lonmin remains a risky bet for investors as its labor situation in South Africa continues to drag on for weeks now drastically impacting production targets. Other losers include Rangold Resources Limited (GOLD) which fell 4.20 percent, Pan American Silver Corp (PAAS) who lost 4.96 percent, Anglo-American PLC (AUKKY) which slid down 4.60 percent, Anglo-American Platinum Limited (AGPPY) by 2.76 percent, and Stillwater Mining Corp (SWC) which fell back 0.28 percent.

    Nov 13 8:05 AM | Link | Comment!
  • Favorable Jobs Data Strengthens Dollar; Gold And Silver Drop

    Favorable jobs data from the United States Department of Labor released last Friday fueled resurgence in the dollar leading to losses in the precious metals market. Most gold and silver ETFs as well as equities fell considerably in Friday's trading while platinum and palladium held solid ground.

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    Gold, Silver fall; Platinum, Palladium Advance

    In Friday's trading, silver took the brunt of the loss sliding by 2.71 percent to close at $30.91 while gold was not far behind posting a 1.90 percent loss falling below the $1,700 barrier, the first time since August 31.

    On the other hand, palladium and platinum outperformed gold and silver, attributed largely to labor problems in South Africa. Palladium led all four precious metals by posting a 1.18 percent growth to close just below $600 per troy ounce. Platinum advanced nearly 0.52 percent.

    Precious Metal ETFs affected by push for greater liquidity

    ProShares Ultra Silver (AGQ) led all gold and silver ETF losers after posting a 7.84 percent loss, bringing its 30-day trading loss total to 20.70 percent. On the gold ETF front, ProShares Ultra Gold (UGL) fell 4.64 percent while Market Vectors Gold Miners ETF (GDX) slid 4.09 percent to close below $50 per troy ounce.

    Rounding up the other notable gold and silver ETFs losers are iShares Gold Trust (IAU) which fell 3.85 percent, iShares Silver Trust (SLV) which tumbled by 3.85 percent, Global Silver X Miners ETF (SIL) which declined by 2.91 percent, and SPDR Gold Shares (GLD) which closed at $ 162.60, down 2.32 percent from its Wednesday opening price. The markets were closed Monday and Tuesday after Hurricane Sandy tore through the New York and New Jersey area.

    Platinum and palladium ETFs continued to show mixed results despite gains in their respective spot prices. The E-TRACS UBS long Platinum ETN (PTM) was the lone gainer posting 1.37 percent growth. ETFS Physical Platinum Shares (PPLT) fell 1.50 percent while the Dow Jones-AIG Platinum Trust Sub-Index ETN closed down 2.38 percent. ETFS Physical Palladium Shares (PALL) also fell modestly dropping back 0.99 percent.

    Precious Metal Futures Remain Weak

    COMEX silver and gold contracts also settled down 2.7 percent and 1.90 percent respectively. As seen in the table below, the futures market is showing strong sell signals for contracts expiring early next year.

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    Barrick Gold receives price target cut, leads all equity losers

    The biggest gold equities were not exempt from the losses in the spot market. Barrick Gold (ABX) led equity losers posting a 12.21 percent weekly decline following a price target cut announcement from Tony Lesiak, a Macquarie analyst. Kinross Gold (KGC), Goldcorp Inc (GG) and Rangold Resources Limited (GOLD) also submitted a dismal performance falling 5.35 percent, 4.28 percent, and 1.12 percent respectively.

    Two silver stocks, however, bucked the trend posting notable gains. American Couer dAlene Miners Corp (CDE) and Pan American Silver Corp (PAAS) were both in the green following the closing bell Friday posting 2.64 percent and 1.49 percent gains respectively. Meanwhile, Silver Wheaton Corp (SLW) was down 0.45 percent joining beleaguered platinum and palladium producers Anglo-American Platinum Limited (AGPPY) and Lonmin PLC (LMI.L) which fell 1.82 percent and 2.70 percent respectively. The notable gainers in this segment include Anglo-American PLC (AUKKY) and Stillwater Mining Corp (SWC) which posted 0.38 percent and 1.05 percent at the close of Friday's session.

    Nov 05 10:45 AM | Link | Comment!
  • Strengthening Dollar Pushes Gold, Silver Spot Down

    The strengthening of the US dollar combined with a push for greater liquidity in the US market led to the slide of the gold and silver spot for the second week in a row. Meanwhile, easing tensions in the labor situation of South African mines has fueled supply stability for platinum and palladium.

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    Dollar gains; silver, gold falls1

    For the second week in a row, the gold, silver, platinum and palladium spot fell as the US dollar bounced back versus other currencies. Continued uncertainty in the European market, likewise, drove investors to prioritize liquidity creating a sell-off in many financial segments. Weaker-than-expected earnings from many notable Wall Street performers like Google and Microsoft also helped push precious metals lower particularly during the last hours of Friday trading.

    Gold plunged 1.45 percent for the week while silver suffered heavier losses when it fell 3.69 percent down to the $32 per troy ounce level.

    Platinum and palladium also dropped 1.58 percent and 2.19 percent respectively. The dramatic slide in precious metals over the last two weeks has pushed precious metal prices down to their lowest level in nearly six weeks.

    Precious metal ETFs respond to the spot, slide

    Gold ETFs fared much better versus the spot price. Several gold ETFs only dropped by less than a percent point in last week's trading.

    SPDR Gold Shares (GLD) and iShares Gold Trust (IAU) fell 0.82 percent and 0.83 percent respectively, also recording identical 30-day losses of 2.90 percent each. Meanwhile, Market Vectors Gold Miners ETF (GDX) was the lone bright spot. GDX advanced nearly 0.17 percent for the week, buoyed by strong performance in Tuesday and Wednesday trading sessions.

    ProShares Ultra Silver (AGQ) led all silver ETF losers posting a 6.46 percent loss in weekly trading dragging its monthly trend 14.36 percent lower. AGQ closed the week under the $50 price level for the first time since late August. iShares Silver Trust (SLV) was also in the red this week as it tumbled 3.18 percent.

    Rounding up our check of the precious metals ETF market are ETFS Physical Platinum Shares (PPLT) and ETFS Physical Palladium Shares (PALL) which also fell modestly. PPLT dropped back 1.27 percent while PALL tumbled to a 1.93 percent close.

    Market perception for gold, silver shifts to "Sell" 3

    COMEX contracts settled lower Friday, amid lower spot prices across the board. This has changed market perception to "Sell" for gold, silver, and palladium, the first time since March. The trend also shows significant volatility in silver which has suffered losses for two consecutive weeks.

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    Gold equities rally; Barrick Gold receives favorable ratings from Jefferies2

    The precious metals equities market posted mixed results last week. For gold equities, Barrick Gold (ABX) and Kinross Gold (KGC) posted modest positive growth of 0.23 percent and 0.10 percent respectively. Barrick Gold had a particularly strong week after Jefferies, a global investment bank, upgraded its assessment of ABX stocks to "buy" following expected strong gold production forecasts in the coming months. Meanwhile, Goldcorp Inc (GG) and Rangold Resources Limited (GOLD) fell 0.02 percent and 1.55 percent respectively.

    Silver Wheaton's SLW continues to fluctuate around the $40 price mark after it breached this level for the first time in 12 months two weeks ago. This week, SLW momentarily broke through the $40 ceiling in Wednesday's trading before falling back to close 1.50 percent lower for the week.

    Anglo-American Platinum Limited (AGPPY) and Anglo-American PLC (AUKKY) both stayed strong for two weeks in a row. AGPPY closed the week up 1.87 percent while AUKKY rallied to a 4.96 percent gain. Labor protests in South Africa continue to be a major problem affecting the supply side. However, progress was reported during in-company labor negotiations resulting in segment-wide optimism that supplies will remain up to support heavy global demand expected in November and December this year.

    Oct 23 4:23 AM | Link | Comment!
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