Gold Reviews

The Aft Deck submits:

U.S. Dollar Trading ((USD)) returned to weakening as the heavy gains the day before inspired fresh selling. US data was weak but stock managed to also finish marginally higher. Weekly jobless claims at 637k vs. 610k Forecast. Crude Oil was stronger up $1.60 finishing the day $58.51 a barrel. In US share markets, the Nasdaq was up 25 points or 1.5% and the Dow Jones was up 46 points or 0.56%. Looking ahead, April CPI at 0.1% vs. 0.2% previously.

The Euro ((EUR)) bounced well off lows in Europe to finish in a bullish mood. Support close to 1.3500 discouraged attempts lower and strong stocks sent the pair higher again. A lot of comments from ECB members overnight failed to move the market. Overall the EUR/USD traded with a low of 1.3524 and a high of 1.3667 before closing at 1.3642. Looking ahead, Q1 GDP forecast at -2% vs. -1.6% previously.

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Source:Dollar Weakens Further as Equities Rally

FP Trading Desk submits:

Investing in metals and mining remains a very tricky and risky proposition, but there are some promising indicators that the risk is becoming manageable, a new UBS bulletin suggests.

UBS Investment analyst Brian MacArthur said in a note to clients Wednesday:

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Source:Metals and Mining: Manageable Risk - UBS

Mark O’Byrne submits:

Further consolidation was seen yesterday, with gold and silver rising marginally again and both look set to have a second strong week of gains.

While the staggering pace of economic decline has certainly abated, individual economies and the global economy continues to deteriorate as recessions deepen internationally. All the talk of “green shoots” while understandable, is the type of unrealistic wishful thinking and superficial analysis that helped lull investors into a false sense of security and get our financial and economic systems into the dreadful mess they are in today.

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Source:Gold Investments Market Update: Take 'Green Shoots' with a Pinch of Salt

From a long-term perspective, gold is a bargain at recent prices in the $900 to $930 an ounce… and will remain so even as it begins to move into a higher trading range.

Recent gold-market developments and technical price action — along with broader economic and financial-market developments — suggest that gold is bracing for a resumption of its long march upward and a retest of its historic high in the months ahead. For more, see our recent posts on NicholsOnGold.com, particularly Risk/Reward Ratio Favors Long Side and Gold: A New Monetary Role.

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Source:Inflation Expectations and the Price of Gold

Ashraf Laidi submits:

While both oil and equity indices reveal preliminary signs of a consolidation, downward momentum is particularly expected to weigh on oil. This is especially supported by my expectation for oil prices to underperform metals, which is signaled by a looming rebound in the Gold/Oil ratio. The chart below cogently illustrates how the turning points in the Gold/Oil ratio are driven by commodity markets’ optimism with the economy. Thus, a rising G/O ratio occurs during deteriorating sentiment (expressed primarily by oil weakness) while a falling G/O ratio emerges in tandem with improved market sentiment. And despite the decline in the G/O ratio from its 14-year highs attained in February, it continued to hold above its 200-day MA, which hasn’t been broken since last fall.

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Source:Gold / Oil Ratio Suggests Oil to Underperform Metals

Mark O’Byrne submits:

Gold and silver were essentially flat yesterday and consolidated on recent gains despite a slight dollar recovery and marked weakness in equity markets.

Gold has fallen somewhat in Asian and early European trading but still looks good from a technical perspective. A close above $932/oz should see us quickly target the $960/oz to $965/oz level which when breached should see us retesting the intra-day high of $1,006.30 reached on February 20th.

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Source:Gold's Increasing 'Safe Haven' Appeal

Trace Mayer submits:

The inherently unstable, fundamentally unsound and immoral worldwide financial system organized out of intrinsically worthless debt has exploded into derivatives and imploded into a greater depression. Several of the stronger voices in the financial press evade the ‘D word’ which hangs over the world economy like the Sword of Damocles.

But Yahoo Finance! reports:

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Source:Drowning in Derivatives

Mark O’Byrne submits:

Gold and silver rose again yesterday (1.2% and 2.3% respectively) as the dollar continues to come under pressure.

The dollar has fallen not due to an increase in risk appetite but rather an increase in risk aversion coming from the dawning realisation that the very credit worthiness of the US is at risk due to the global financial and economic crisis.

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Source:Downgrading Uncle Sam?

Microcap Speculator submits:

Thanks for all the positive feedback on the post about the Newgold (NGD)- Western Goldfield (WGW) merger and the possbility of a U.S. Gold (UXG)- Rubicon Minerals (RBY) deal. Many have asked what other gold mining companies I own. Here’s the current list: Yamana Gold (AUY), Banro Corp. (BAA), Claude Resources (CGR), Golden Star Resources (GSS), NovaGold Resources (NG) New Gold Inc. (NGD), Northgate Minerals (NXG), Rubicon Minerals (RBY), Western Goldfields (WGW), U.S.Goldcorp (UXG).

Today I want to take a closer look at Northgate Minerals (Amex:NXG), a gold and copper miner operating in Canada and Australia. Northgate exhibits strong momentum both fundamentally and technically.

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Source:Northgate Minerals: Another Junior Miner on the Move

Kristjan Velbri submits:

Since my last bullish call on silver, the precious metal has indeed gone up but something else has caught my eye, which I feel that the people who are keeping an eye on silver (and gold) should know about, if they don’t know it already.

Both gold and silver are nearing a resistance line and it looks like a strong selling point unless the US dollar lends a helping hand by continuing its decent. I admit that I am not an expert on currencies, hence I don’t have a strong enough conviction on which to make a prediction as to what will happen to the dollar. The basics support a further drop in the dollar, but as the previous months have shown us, a fundamental weakness in the dollar might not be enough to materialize into actual losses.

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Source:Gold and Silver About to Hit Resistance