The London Bullion Market Association

14/09/2021

Gold Steadies Before U.S. Inflation With Taper Timeline in Focus

Gold steadied as investors waited for U.S. inflation data that may influence when the Federal Reserve will start reducing stimulus.

Consumer price index data due later Tuesday are expected to show an annual pace of inflation of 5% or more for a fourth month. This follows a report last week which showed the producer price index for final demand rose to a fresh series high as persistent supply chain disruptions pushed costs higher.

Bullion is trading below $1,800 an ounce as traders weigh risks from the delta virus variant and elevated inflation. If consumer prices come in hotter-than-expected, expectations for when the Fed could start tapering bond purchases could shift to November from December, according to Edward Moya, a senior market analyst at Oanda Corp.

13/02/2021

13/02/2021

LBMA annual forecast survey 2021

LBMA - The Competent Authority for the world's Bullion Market

30/07/2020

*GBP* Buy @ 1.2965 target @ 1.3015 stoploss @ 1.2940

*EUR* Buy @ 1.1760 target @ 1.1800 stoploss @ 1.1740

*JPY* Sell @ 105.20 target @ 104.80 stoploss @ 105.40

*GOLD* Buy @ 1961.00 target @ 1970.00 stoploss @ 1956.00

*Crude Oil* Sell @ 41.45 target @ 41.05 stoploss @ 41.65

27/07/2020

Gold price path to $2,000: 'There is no quick solution to U.S.-China tensions' — analysts

Gold is on a mission: to reach its all-time high of $1,920. And aside from looking like a very probable outcome for next week, analysts say that there is little to stop the precious metal from rising further and getting close to $2,000 an ounce.

Rising tensions between the U.S. and China, weaker U.S. dollar, falling yields, additional fiscal stimulus and still climbing COVID-19 cases have all been some of the significant drivers behind gold's massive move up this week.

At the time of writing, August Comex gold futures were trading at $1,899.80, up 0.52% on the day. In just five trading days, gold gained more than $80 and saw its seventh weekly gain in a row.

In terms of what's next for gold, the majority of analysts Kitco News spoke to on Friday said that the trend upwards remains intact and more price gains are likely. The main reason behind such bullish outlook is that gold's supportive elects are here to stay … for now.

"I don't see a quick solution to escalating tensions between the U.S. and China, I don't see a quick solution to the pandemic problem, and I don't see a quick solution to the global worries that come from increased stimulus and increased debt," RBC Wealth Management managing director George Gero told Kitco News. "The trend is my friend, according to traders in gold. They will remain buyers on dips."

Hitting higher levels is the outlook for both gold and silver, Gero noted.

U.S.-China tensions: 'U.S. dollar on its knees'

The U.S.-China tensions saw another escalation Friday when China retaliated for Houston's consulate closure by ordering the U.S. to close its consulate in the city of Chengdu.

"The U.S. move seriously breached international law, the basic norms of international relations, and the terms of the China-U.S. Consular Convention. It gravely harmed China-U.S. relations," China's foreign ministry said in a statement.

24/02/2020

Business centre

24/05/2019

GBP sell@ 1.2705 target@ 1.2655 stoploss@ 1.2730
EUR sell@ 1.1205 target@ 1.1165 stoploss@ 1.1125
JPY sell@ 109.75 target@ 109.35 stoploss@ 109.95
GOLD buy@ 1279.15 target@ 1288.15 stoploss@ 1274.15
Crude oil sell@ 58.70 target@ 58.30 stoploss@ 58.90

23/05/2019

GBP sell@ 1.2650 target@ 1.2600 stoploss@ 1.2675
EUR sell@ 1.1150 target@ 1.1110 stoploss@ 1.1170
JPY sell@ 110.25 target@ 109.85 stoploss@ 110.45
GOLD sell@ 1279.05 target@ 1270.05 stoploss@ 1284.05
Crude oil sell@ 60.50 target@ 60.10 stoploss@ 60.70

23/05/2019

GBP sell@ 1.2665 target@ 1.2615 stoploss@ 1.2690
EUR sell@ 1.1165 target@ 1.1125 stoploss@ 1.1185
JPY buy@ 110.15 target@ 110.55 stoploss@ 109.95
GOLD sell@ 1276.05 target@ 1267.05 stoploss@ 1281.05
Crude oil sell@ 61.15 target@ 60.75 stoploss@ 61.35

07/03/2018

Gold bulls regain near-term technical advantage this week, but need to show more power soon to keep it.

13/03/2016

13/11/2015

It is day four of India’s five-day Diwali festival, a time known for gold buying, however some analysts say this year’s celebrations may not provide much of a floor for struggling gold prices.
Thursday, Sudheesh Nambiath, lead analyst of precious metals demand in South Asia & UAE for Thomson Reuters GFMS, told Kitco News that he expects gold demand to amount to roughly 22 to 25 tonnes in the last three days of the festival due to a 5% reduction in tariffs by India’s customs on the first day – known as Dhanteras.
“[T]hat is not a big volume in terms of stock replenishment for Diwali,” he said. “Thus, India's Diwali demand is going to have a lesser weight this year to provide a floor to prices,” he added.
December gold futures have been under pressure since late last week, and hit a nearly 5.5-year low of $1,073 an ounce Thursday after quickly bouncing back. Gold prices were last quoted down 0.65% at $1,077.90oz.
Nambiath noted that gross imports last month were around 45 tonnes, which is a “meager volume” ahead of Diwali.
He added that demand increased by an average of 20% this Diwali compared to last year, but this still won’t support prices.
“[T]hese are inventory built over last two months and the local premia over LBMA is just at $0.5/oz, better compared to discount of $8 in October,” he explained. “For the demand to be good enough and create some supply deficit, ideally local premia should be $1 to $2, which is not the case,” he added.
HSBC’s chief precious metals analyst, Jim Steel agreed with Nambiath in that inventories piled up in the last few months in India, have already impacted the market.
“Imports into India were quite large in August, [and have] tailed off since then,” he said Thursday. “We still have investors liquidating, so without the physical demand, the market floor would be lower,” he added.
Steel also attributed low rainfall this year to lower demand during Diwali.
“Rainfall, I think, was something like 14-15% below average for the monsoon, which may have squeezed rural income where the majority of gold is still bought,” he said.
According to Steel, HSBC sees a possible low around $1,025-1,050 an ounce for gold, and forecasts an average price of $1,160/oz in 2015. However, he noted that emerging market demand should pick up as gold hovers below the $1,100 area.