Gold inches higher on mixed macroeconomic news Bullion notches 7th straight quarterly gain, rising 12% in the 2nd quarter

http://www.marketwatch.com/story/gold-slumps-on-optimism-over-europe-credit-2010-06-30

Gold inches higher on mixed macroeconomic news
Bullion notches 7th straight quarterly gain, rising 12% in the 2nd
Gold ends higher on safe-haven buying
Gold inches higher but loses 4% on week

SAN FRANCISCO (MarketWatch) -- Gold futures edged higher on Wednesday, enough to deliver another monthly gain and another quarterly rise for bullion, as investors weighed a disappointing jobs report against a hopeful read on manufacturing activity in the Chicago area.

Gold for August delivery added $3.50, or 0.3%, to $1,245.90 an ounce on the Comex division of the New York Mercantile Exchange.

Prices fluctuated earlier, reacting to the macroeconomic reports and the ups and downs for other commodities and the stock market.

Gold ended the second quarter up 12%, its seventh consecutive quarterly gains. It rose 1.7% in the first quarter of 2010, a string of wins going back to the third quarter of 2008, when it lost nearly 5%.

On the month, gold gained 2.5%, following gains of 3% in May and 6% in April. Gold lost 0.4% in March.

Some analysts expect more of the same for the metal going forward.


Buy UK Miners' Puts For Share Slide, Trader SaysEquities have been hit hard by a combination of weaker Chinese economic growth, dropping U.S. consumer confidence and bank concerns, but there's still time to buy put options. Kazakhmys September puts could work well, says a trader.
"Uncertainty is going to play in the hands of gold," said Richard Ross, a technical analyst at Auerbach Grayson in New York. "Gold should continue to be an over performer in the second half of the year ... benefitting from uncertainty and risk appetite. As investors look for alternative to currencies, the bullish argument for gold is intact."

Gold has had an impressive run in 2010, starting to vie for record-breaking levels in May. It set records on May 12, June 8 and $1,258.30 an ounce on June 18.

"The pullbacks are very shallow are buyers are stepping in, regardless of price," he said.

Gold had its fair share of pullbacks in early trading Wednesday, but concerns faded as the session progressed.

Earlier, the purchasing managers index for the Chicago region fell to 59.1% from 59.7%, but the slight drop was construed as positive as index levels remained high and the slight drop was in line with expectations. Readings over 50% indicate overall business expansion.

Also on Wednesday, payroll processor ADP said private-sector employment increased by 13,000 in June. Economists surveyed by MarketWatch had been expecting the ADP report to show a 65,000 increase. See Economic Report for more on GDP.

The U.S. dollar came under further pressure after the private payrolls data and never fully recovered.

The dollar index /quotes/comstock/11j!i:dxy0 (DXY 84.37, -0.29, -0.34%) , which compares the U.S. unit to a basket of six currencies, declined 0.1% to 85.94, getting a late-session boost after ratings agency Moody's Investors Service warned it could downgrade Spain's debt from Aaa, Moody's top grade.

Meanwhile, silver tracked gold higher, with the most-active September contract adding 39 cents to $18.70 an ounce.

Copper went back to gains. September copper, the most-active contract, added 2 cents, or 0.7%, to $2.95 a pound. Copper futures slid 5.1% on Tuesday after an economic indicator for China was revised down.

Meanwhile, the SPDR Gold Trust /quotes/comstock/13*!gld/quotes/nls/gld (GLD 118.49, +1.45, +1.24%) , the largest exchange-traded fund backed by gold, added 0.4%. The ETF's holdings rose to a fresh record Tuesday, the last day for which statistics are available. The fund reported holding 1,320 metric tons (1,455 short tons) of gold, against 1,316 metric tons earlier in the week.

The fund's assets have surpassed $50 billion, a 32% increase so far this year.

On Tuesday, gold rose modestly as stocks and other commodities fell sharply on fears China's economy may be slowing and as the Conference Board consumer-sentiment index fell to 52.9 in June, its lowest level since March

Claudia Assis is a San Francisco-based reporter for MarketWatch.

Nick Godt is MarketWatch's markets editor, based in New York

Gold Stronger So Far This Trading Session - Message From Eric King of King World News

Gold Stronger So Far This Trading Session

After a huge move to the downside yesterday, gold seems to have steadied so far this trading session. Many people like to write about what news item moved the price of a particular market one way or another in a given trading day. I find that commentary worthless. Looking at longer-term charts of secular bull markets, one day news items are like a blip on a chart and not worth noting. Have steady nerves and keep your eye on the big prize.

July 2, 2010
Bloomberg: “People are still considering gold as a safe haven,” said Bernard Sin, the head of currency and metal trading at bullion refiner MKS Finance SA in Geneva. “Europe is still not in a good shape, and the U.S. is still not in a good shape.”

The metal is “a good hedge against further problems in the financial field and further potential inflationary trends that will be coming,” Barry James, who manages $2 billion as chief executive officer at James Investment Research Inc. in Xenia, Ohio, said yesterday.

Remember in a bull market never give up your position. You will have pullbacks from time to time, that is just how they are. Also, as Richard Russell says, bull markets are designed to take as few riders as possible. Don’t be one of the people not taking the ride.

Buy and hold during secular bull markets and stop worrying about gyrations in price.

For the entire Bloomberg article CLICK HERE

Gold Ready for Parabolic Take Off? - Market Oracle

http://www.marketoracle.co.uk/Article20514.html

GOLDEN TIMES - Gold is amazing. It’s been very strong, hitting record highs last week. Its bullish price action means investors and governments know it’s time to be in safe assets. The result is, gold continues to benefit as the world’s #1 safe haven.

GOLD IS MONEY

We’re also seeing first hand gold’s role in the monetary system. Few people understand gold’s importance over other forms of wealth but if there was ever a doubt, it’s been erased by gold’s reaction to ongoing financial developments.

Gold is money. Most governments regard gold as a monetary instrument, and it has been the international currency for thousands of years.

BIG PICTURE: Gold is best

Considering the big picture, there’s no doubt gold is the best investment. The mega trend changed when the new century began. A clear shift away from paper assets (like stocks) and into tangibles (like gold) took place and a new era began. It wasn’t obvious to the average investor because mega trends take lots of time for investor’s mentality to gradually change.

Even though gold’s current rise is already in its tenth bullish year, the trends are still solidly in gold’s favor. These mega trends say… stay the course… stay with gold and gold related investments.

Mega bull markets also take time to run their course and this time will unlikely be an exception. Bull markets tend to end in euphoria, when everyone’s invested and they can’t get enough of it. Gold is far from this.

Comparing the current 10 year gold run to the 12 years leading up to the 2000 tech explosion in the stock market, and gold’s bull market in the 1970s, you can see that gold’s rise is still tame (see Chart 1). A bubble is still well into the future.

CLICK HERE to continue reading this artilce

Silver, ‘Gold’s Little Brother,’ May Advance to $23 by next year - Bloomberg

Pallets of silver bullion await export. Photographer: John Guillemin/Bloomberg
http://www.bloomberg.com/news/2010-06-22/silver-may-surge-as-gold-s-little-brother-lures-buyers-commerzbank-says.html
Silver, ‘Gold’s Little Brother,’ May Advance to $23
06/23/2010 00:03:39
Silver may surge to as much as $23 an ounce next year, the highest price since 1980, as investors seek a cheap alternative to gold and a global economic recovery boosts industrial demand, according to Commerzbank AG.

The metal may advance to as much as $21 an ounce by the end of this year, about 12 percent higher than yesterday’s close, Eugen Weinberg, head of commodity research, wrote in a report, dubbing the metal “gold’s little brother.” Compared with gold, silver may be considered low priced, Weinberg wrote.

Gold surged to a record $1,265.30 an ounce yesterday as investors sought to preserve their wealth against declining currencies, and China’s decision to drop the yuan’s dollar peg boosted commodity prices. There’s rising demand for silver, or “poor man’s gold,” the Perth Mint said earlier this month.

“Gold is still a priority for investors” who are looking for shelter from growing economic uncertainty, Ng Cheng Thye, a Singapore-based director at Standard Merchant Bank Ltd., said by phone today. There’s also “a good chance for silver to rally higher,” possibly to $20 an ounce, Ng said.

Silver for immediate delivery traded at $18.8213 an ounce at 4:43 p.m. in Singapore, 11 percent higher since the start of the year. Gold, which has risen 13 percent in 2010, was at $1,239.75 an ounce.

Weinberg’s targets add to signs of increased investor interest in precious metals. Assets in the SPDR Gold Trust, the biggest exchange-traded fund backed by bullion, have risen 15 percent in 2010 to a record 1,307.96 tons. The Perth Mint said Europe’s debt crisis was spurring demand.

‘Low-Cost Alternative’

“As with gold, silver is also considered to exhibit stabilizing characteristics when it comes to value,” Weinberg wrote in yesterday’s report. “Silver is reasonably priced compared to gold and constitutes a low-cost alternative.”

The ratio between gold and silver had risen to about 65 compared with an average of 59 over the past “several years,” the report said. “We expect this ratio to swing back, leading to potential for silver,” Weinberg said.

An ounce of gold for immediate delivery bought about 65.81 ounces of silver today, compared with the 2008 low of 47.55 ounces and the decade average of 61.99 ounces, data compiled by Bloomberg show.

Silver sales would be boosted by an expected recovery of industrial demand, with the metal used in solar cells, mobile- phone covers and photography, the report said. Global demand may increase by as much as 50 million ounces by 2011, it said.

Economic growth in China, already a net importer of silver, would also boost sales, Weinberg wrote. China’s import demands are likely to increase, “having a positive impact on the price,” the report said.

To contact the reporter on this story: Kyoungwha Kim in Singapore at Kkim19@bloomberg.net

Don Coxe Dissects Gold, As "The Oldest-Established Store Of Value Moves To Center Stage" - ZeroHedge.com

Don Coxe Dissects Gold, As "The Oldest-Established Store Of Value Moves To Center Stage"

http://www.zerohedge.com/article/don-coxe-dissects-gold-oldest-established-store-value-moves-center-stage


CLICK HERE Full June report by Don Coxe, a must read for everyone a 53 page report

Gold still 'the safest haven': hits $1260/oz

http://www.commodityonline.com/news/Gold-still-the-safest-haven-hits-$1260oz-29243-3-1.html
By Rutam Vora, Commodity Online
Gold prices are set for yet another bull run on the back of concerns running high about European economy and investors rushing for gold under haven buying. The movement well understood when most of the investors opined that gold persist as the most safe investment instrument above all commodities and equities.

Gold prices have struck yet another high on Friday, June 18, 2010 crossing USD 1260 per ounce on Comex division of New York Mercantile Exchange (NYMEX), however in India gold prices remained range-bound between Rs.18702 and 18897 per 10 grams mainly on the back of Indian rupee firming up against US Dollar hitting near one-month high levels.

On Thursday, the partially convertible rupee had ended at Rs.46.30/31 per dollar, off an intra-day peak of Rs.46.28, its strongest since May 20. It strengthened about 0.5% from the previous close of 46.55/56.

In an interaction with CommodityOnline, Ashok Mittal, VP & Country Head, Karvy Comtrade Ltd maintained that investors should invariably invest in gold to stay unaffected in the inflationary situation and devaluation of currency. “Gold is a classic hedge against inflation and devaluing paper currency. Considering the current European debt crisis, I think gold is the only investment instrument for the investors to invest for long term,” Mittal said.

Gold has emerged to be one of the strongest investment instruments in the recent troubled times. The gold prices in the international markets have appreciated by over 12% so far during this year.

However, other commodities including silver and crude oil have also remained in the consideration for the investors. An online poll conducted by CommodityOnline.com revealed that 53% of the investors believed that silver is the second best ‘safe haven’ in the current turbulent time. CLICK HERE to keep reading.