Investors seeking long-term gains should avoid investment in physical gold, as gold prices are in the downward trend and this could slash their potential return, Gold Traders Association President Jitti Tangsithpakdi advised.
Year to date, gold prices have lost some Bt2,000 per baht weight, he said.
It could fall below last year’s low at US$1,522 per ounce. It could fall to as low as $1,500 as global gold funds ake profits in the absence of new supporting factors, he said.
According to Gold Traders Association, as of 1.39pm when London gold price was [...] Continue Reading…
Article source: http://www.nationmultimedia.com/business/Gold-prices-in-downward-trend-30182230.html
Gold prices in the domestic market may cross Rs 30,000 per 10 grams during the June-August quarter registering a strong recovery, according to industry body Assocham.
This could result due to slowdown in inflow by foreign institutional investors (FIIs), rising headline inflation, rupee depreciation and increased demand by jewellery manufacturers and traders in the wake of wedding and festive season, the Associated Chambers of Commerce and Industry of India (Assocham) said in a statement today.
Besides, gold imports might also reach about 1,000 tonnes in 2012-13 from about 933 tonnes worth $59 billion in 2011-12 and its price might touch Rs 35,000 per 10 gram by the turn of this year, Assocham said.
“Lack of clarity on tax implications resulting in likely affect on old transactions has led to massive slump in FIIs inflows which has compelled investors to move out from capital and commodity markets and invest in bullion (both cash and ETFs) to hedge against inflation and get good returns,” said Mr D.S. Rawat, secretary general of Assocham.
“Besides, weakening rupee against the dollar due to trade imbalance together with soaring current account deficit, slowing exports on account of falling growth in the US and Euro zone and aforesaid [...] Continue Reading…
Article source: http://www.thehindubusinessline.com/markets/gold/article3428514.ece?ref=wl_markets
JOHANNESBURG (miningweekly.com) – An upturn in the gold price is likely once current Greek turmoil crystalises, says World Gold Council (WGC) investment MD Marcus Grubb.
Current global macroeconomic concern is seen as a contributing factor to gold’s gradual fall since the end of February, when US Federal Reserve chairperson Ben Bernanke revealed that there would be no more quantitative easing in the near term in the US, which also led to a sharp fall in equities.
“It’s not a gold phenomenon. We’re basically seeing investors raising cash weightings again as the international economic picture begins to look deeply concerning again. There are also rumours of more bank rating downgrades to come,” Grubb tells Mining Weekly Online.
In addition to the Greece and eurozone issues, there are also lingering concerns about the technical recession the UK and nonfarm payroll numbers coming in below expectation in the US after three months of more bullish economic data.
Investor response has been to sell assets that are in the money, like gold, and move into dollars, US treasuries and sovereign debt as a hedge.
However, should Greece exit the euro and devalue its currency significantly, Grubb sees gold’s qualities as a hedge against inflation risk, currency depreciation and [...] Continue Reading…
Article source: http://www.miningweekly.com/article/gold-price-upturn-likely-once-greek-turmoil-crystalises-wgc-2012-05-17
NEW YORK, May 16 (UPI) — U.S. stock market gains faded Wednesday as worries over the Greek economy continue to shake investor confidence.
Talks to create a coalition government in Athens have failed, forcing Greek President Karolos Papoulias to appoint a caretaker government that would hold the reins until mid-June, when a second national election would take place.
In Washington, the Commerce Department said U.S. housing starts rose 2.6 percent in April, but permits issued — a predictor or future construction activity — were down 7 percent in the month compared to March.
By close of trading on Wall Street, the Dow Jones Industrial Average gave up 33.45 points, or 0.26 percent, to 12,598.55. The tech-heavy Nasdaq composite index turned from positive to negative with the index down 19.72 points or 0.68 percent, to 2,874.04. The Standard Poor’s 500 index shed 5.86 points, 0.44 percent, to 1,324.80.
On the New York Stock Exchange, 990 stocks advanced and 2,051 declined on a volume of 4.1 billion shares traded.
The benchmark 10-year treasury note rose 2/32 to yield 1.759 percent.
The euro fell to $1.2716 from Tuesday’s $1.273. Against the yen, the dollar rose to 80.36 yen from Tuesday’s 80.19 yen.
In Tokyo, the Nikkei 225 index [...] Continue Reading…
Article source: http://www.upi.com/Business_News/2012/05/16/Early-stock-gains-fading-Wednesday/UPI-98171337181364/
(RTTNews.com) – Wall Street is slowly and steadily shaking off its fears concerning the Greek crisis even as the nation’s problems remain unresolved. The markets may choose to focus on the U.S. jobless claims report and the results of a regional manufacturing survey, as they attempt to reinforce their conviction regarding a strong domestic recovery. Additionally, some key retail earnings, including those from retail giant Wal-Mart (WMT) are also in focus. That said, the Greece overhang may continue to be the cause of some jitters in the markets.
As of 6:30 am ET, the Dow futures are rising 4 point and the SP 500 futures are up 0.0 points, while the Nasdaq 100 futures are edging down 1 point.
[...] Continue Reading…
Article source: http://www.nasdaq.com/article/wall-street-on-track-for-another-lackluster-run-20120517-00150
Mark Lennihan, Associated PressLooks big enough to fend for itself, doesn’t it?
Wall Street, with JPMorgan Chase playing the role of chief villain, is taking another beating this week. In the end, though, Wall Street won’t feel a thing.
Oh, sure, people at the gargantuan financial services firm lost their jobs, as well they should have.
The price of JPMorgan stock took a dive, as well it should have.
The shareholders are most displeased, as well they should be.
And the politicians? They’re loving it.
Texas Republican Rep. Randy Neugebauer, who chairs the House Financial Services Subcommittee on Oversight and Investigations, wants “a clear picture of what happened at JPMorgan so that we can determine whether the actions that caused this loss pose risks to our financial markets and our economy as a whole.”
Hint: They do. And the author of those actions, the United States Congress, ought to be feeling some remorse and correcting its mistakes rather than developing a deeper co-dependency with Wall Street.
But it won’t, and that’s why Wall Street will come out of its latest compost pile smelling like a rose.
In the end, count on Congress to take the hand of the financial services [...] Continue Reading…
Article source: http://www.cleveland.com/obrien/index.ssf/2012/05/wall_streets_federal_fixers_ne.html
Click on chart for more premarket data.NEW YORK (CNNMoney) — U.S. stocks were poised to open higher Thursday, as investors look past the latest European worries and await key earnings and economic reports, as well as the final pricing for Facebook’s initial public offering.The Dow Jones industrial average (INDU), SP 500 (SPX) and Nasdaq (COMP) futures were all slightly higher. Stock futures indicate the possible direction of the markets when they open at 9:30 a.m. ET.Stocks declined for a fourth straight session on Wednesday, as positive economic data in the U.S. failed to counter increasing pessimism over Greece’s fiscal woes.European leaders Wednesday voiced support for keeping Greece in the eurozone, but cautioned the debt-ridden country must stick with unpopular austerity measures if Greece is going to continue to receive help. A new vote is set for Wednesday June 17. Meanwhile, the Greek population is responding to the crisis by making massive withdrawals from Greek banks over fears they could have their savings converted to a devaluated currency soon, should Greece be forced to drop the euro. Investors remain worried what a Greek exit from the eurozone would mean for broader financial system in both Europe and [...] Continue Reading…
Article source: http://money.cnn.com/2012/05/17/markets/premarkets/?source=cnn_bin
Thu May 17, 2012 1:00am EDT
* High average gold prices in Q1 weighs on demand from
jewellery, technology sectors
* China for the second quarter in a row remains the world’s
top gold consumer* C.bank buying, investment partly offset demand shortfall
in other sectorsBy Rujun ShenSINGAPORE, May 17 (Reuters) – China’s gold demand hit a
record high in the first quarter on investor worries over
inflation and property market curbs, the World Gold Council said
on Thursday, bucking a lower trend in global consumption driven
by higher gold prices.Global gold demand fell 5 percent on the year to 1,097.6
tonnes in the first three months of 2012, as jewellery and
technology sectors bought less gold with average prices up 22
percent from a year earlier, but investment demand and central
bank buying helped cushion the fall, the industry group said.China remained the world’s top gold consumer for the second
quarter in a row, with its gold consumer demand up 10 percent to
255.2 tonnes, beating India’s 207.6 tonnes, which was a 29
percent decline on the year.”Further growth is expected (in China): investors remain
wary of high [...] Continue Reading…
Article source: http://www.reuters.com/article/2012/05/17/gold-demand-wgc-idUSS9E8E500F20120517
NEW YORK (TheStreet) — Where you think the U.S. stock market ends up this year likely depends on your view of the current action.
Or more precisely, the determining factor could be viewed as which of these ‘R’ words you think is most accurate in describing the near-constant selloff in equities since the calendar flipped over to May: Retrace or retreat.
John Stoltzfus, Oppenheimer’s new chief market strategist, is in the retrace camp.
“The current pullback in stocks continues to appear to us as an orderly pullback or more accurately a [...] Continue Reading…
The Dow closed down 33 points at 12,598. The Standard Poor’s 500 index was down six at 1,325. The Nasdaq composite fell 20 to 2,874.
Article source: http://www.boston.com/business/articles/2012/05/16/greek_turmoil_leads_to_losses_on_wall_street/