Oct 31

King Dollar in a Bull Market

Gold Price Comments Off on King Dollar in a Bull Market
But change your goggles and hey! Commodities in AUD not too bad…!
 

BORING as it sounds, I want to talk a bit about the end of US QE today, writes Greg Canavan in The Daily Reckoning Australia.
 
Because it’s very important to how markets are going to behave over the next few months.
 
As you probably know, yesterday the US Federal Reserve voted to end its policy of quantitative easing. But it will still be reinvesting the interest payments from its $4 trillion plus portfolio and rolling over any maturing treasury securities, so it’s balance sheet will continue to grow, albeit much more slowly.
 
On the surface, US markets didn’t seem too fussed about the end of an era. Shares sold off around the time of the Fed’s statement and then rallied towards the close. Probably a case of “algo’s going wild” as automated high frequency traders tried to make sense of the Fed’s statement.
 
And the Fed did its usual job of promising to hold rates as low as they possibly could, which markets seemed happy enough with.
 
But the real action took place under the surface. That is, the US Dollar spiked higher again. This is an important point because when the US Dollar rallies, it usually signifies tightening global liquidity.
 
Think of it as liquidity returning to the source (US capital markets) and drying up…or disappearing. That’s certainly what has been happening these past few months. Since bottoming in May, the US Dollar index (which measures the greenback’s performance against a basket of currencies) has increased by nearly 9%.
 
That might not sound like a huge spike, but in the world of currency movements, it is. Imagine if you’re an exporter and your product just became 9% more expensive…chances are it will lead to a drop in sales as customers look for a cheaper substitute.
 
This is the problem with the end of QE. It leads to liquidity evaporation as ‘punt money’ returns home…which leads to a strengthening US Dollar…which hurts sales of US multinationals.
 
It’s not going to happen right away though. Most companies have hedging strategies in place that protect them from sharp moves in the FX markets. But if Dollar strength persists…and the chart above says that it will, then you’ll see the strong Dollar hitting companies’ revenue line in the coming quarterly reports.
 
Not only that, but the evaporation of liquidity in general could lead to another bout of selling across global markets. QE is all about providing confidence. Liquidity is synonymous with confidence. Take it away and you’ll see the mood of the market change.
 
Getting back to the Dollar strength…it’s a headache for Australia too. It’s smashing the iron ore price, and the Aussie Dollar isn’t falling fast enough to keep up. In terms of the other commodities though, things aren’t quite so bad.
 
All you seem to hear lately is negative news about commodities. That’s because the world prices commodities in US Dollars, and as you’ve seen, the US Dollar is a picture of strength. But if you look at commodity prices in terms of Aussie Dollars, things look a little better.
 
The chart below shows the CRB commodity index, denominated in Australian Dollars. It’s a weekly chart over the past five years. And y’know what…it doesn’t look that bad! Since bottoming in 2012, it’s made considerable progress in heading back to the 2011 highs.
 
But you’ll want to see it start to bottom around these levels. If it doesn’t, prices could head much lower.
 
 
The thing to note about this chart is that it doesn’t include the bulk commodities – iron ore and coal. These commodities tend to dominate the headlines in Australia. Things like nickel, tin, copper and oil don’t get much of a look in.
 
Which reminds me, in case you missed it, Diggers and Drillers analyst Jason Stevenson recently released a report on some small Aussie oil ‘wildcatters’. With the oil price low, now could be a good time to sniff around the sector.
 
You could say that about commodities across the board. In the space of a few years, they’ve gone from hero to zero…or the penthouse to the…
 
That usually means there could be some good value around. One thing you need to look for in the current environment is a decent demand/supply dynamic. Iron ore in particular is heading towards massive oversupply next year. I reckon that makes it a poor investment choice for the next few years.
 
You’re better off to wait until the China slowdown and supply surge knocks out the juniors and all the marginal producers….leaving the market to BHP and Rio. You’ll then probably be able to pick these mining giants up at much lower levels.
 
Once you find a commodity with good supply/demand fundamentals, you need to make sure the producer is low cost. That protects it against further price falls…or a rise in the Australian Dollar.
 
It also protects it against foreign competition. One of the issues with the Aussie resources sector in recent years is costs. Other countries have much cheaper capital and labour costs and can therefore get stuff out of the ground cheaper than us.
 
That brings me to a final issue: Australia doesn’t really invest in its own resource sector. Via superannuation, we have a huge pool of capital. But this mostly goes into the banks or the major miners. Superannuation capital is not high risk capital.
 
That means a lot of the capital that flows into the resource sector is foreign. And when global financial conditions change…like the end of QE and the strengthening of the US Dollar…that capital departs.
 
This will create problems and opportunities for the sector. But given the bearishness towards commodities in general, it’s probably time to start getting interested again.
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Oct 16

Goldman Small Cap Research Releases New Report on Brazil Minerals

Gold Price Comments Off on Goldman Small Cap Research Releases New Report on Brazil Minerals

Goldman Small Cap Research has released a new research report on Brazil Minerals (OTCQB:BMIX). Analyst Rob Goldman stated, “[t]his pure play on the natural resources market in Brazil has made major strides since the release of our initiation of coverage report last month, which bode well for shareholders going forward.”

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Sep 24

India’s Changing Gold Culture

Gold Price Comments Off on India’s Changing Gold Culture
India has been the world’s No.1 gold buyer for thousands of years. But traditions are changing…
 

TODAY marks the last day of Shradh, writes Adrian Ash at BullionVault, the period of “closed observance” on Hindu calendars when it’s deemed “inauspicious” to start new ventures or make new investments.
 
The end of Shradh has a political angle. Also known as Pitru Paksha, the early autumn shutdown has been used to delay nominations for upcoming elections, reports The Times of India.
 
Fighting such “superstitions” can be dangerous. Rationalist campaigner Narendra Dabholkar was murdered in summer 2013 when pushing anti-superstition laws. This summer’s delay to India’s electoral process has angered many who want to reduce what they see as the stifling (and corrupting) effect of India’s deep culture of religious observance.
 
Gold looms large in that culture of course (and also in India’s huge bribery and corruption culture). The peak demand season in the world’s heaviest consumer market starts now, running on until Diwali at the end of October. But long term, many analysts think the wider availability of luxury goods in India will dent India’s gold demand, overcoming superstition where rationalism cannot. Many financial services providers think the same of their products…from bank savings to stock-market funds.
 
India’s younger citizens are indeed breaking with tradition over gold, suggests this story on Mineweb. But not how Western observers might expect. Instead, some younger people have broken Shradh to buy gold at the recent low prices.
 
Forecasts of Asian households “substituting” out of gold into hi-tech consumer goods and packaged financial services are as old as the global bull market in gold, if not older. But they’ve proven very wrong to date. The only thing to dim India’s appetite for gold has in fact been government anti-import rules…imposed because 2013’s demand was so huge in response to the price slump.
 
India’s gold industry is finding ways around that…literally smuggling gold in “through the backdoor” (ahem) as one expert analyst joked to me last week. News today also says the old VAT round-tripping scam…where the same metal is imported and then re-exported in a loop to earn sales tax rebates illegally…has found a new use, helping get around India’s strict and stifling 80:20 rule.
 
Ancient Rome’s Pliny the Elder started the trend of European commentators calling India the “sink of the world for bullion” more than 2,000 years ago. Can that culture, and the flow of metal West to East it has demanded for so long, ever be changed by flat-screen TVs or iPhones?
 
Keep a close eye on how India’s demand…and the floor it’s clearly helped put beneath gold prices to date…develops as Diwali investing, gift-giving and temple offering draws near in 2014.
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Sep 15

All Eyes on US Fed as Gold Price Bears Risk "Short-Covering Rally" from Lowest Weekly Close in 36

Gold Price Comments Off on All Eyes on US Fed as Gold Price Bears Risk "Short-Covering Rally" from Lowest Weekly Close in 36
GOLD PRICES rallied $10 per ounce from a new 8-month low of $1225 hit at the start of Asian trade Monday, trading 0.5% above last week’s finish in London.
 
European stock markets held flat ahead of this week’s US Federal Reserve statement on rates and QE on Wednesday, plus the start of the Eurozone central bank’s new round of long-term bank financing on Thursday.
 
Losing 2.7% against the Dollar, gold prices ended last week with their lowest Friday PM Gold Fix in London since 27 December 2013, down at $1231 per ounce.
 
Silver on Monday held steadier than gold prices, unchanged around $18.65 per ounce to trade some 1.0% above last Thursday’s new 14-month low.
 
“With last year’s double bottom of $1180 not too far off,” says Jonathan Butler at Japanese conglomerate Mitsubishi, “attention will be on the Fed’s comments on Wednesday.”
 
“A hawkish stance” – such as the loss of the words “considerable time” from  the Fed’s forecast for its likely delay to raising interest rates from zero – “could see further strengthening of the Dollar and potentially a further gold capitulation,” says Butler.
 
“If the market view the Fed’s comments as too dovish, gold could stage a reversal.”
 
“We could see a short-lived technical bounce,” reckons Ed Meir at US brokerage INTL FCStone, but “traders will likely use any rallies as a selling opportunity.”
 
In US derivatives, “Some short covering and bargain hunting [was] seen down at the lows overnight,” says a note from brokerage Marex Spectron’s David Govett in London.
 
Latest data on US futures and options show speculative traders as a group grew their “short” betting against gold for the 4th week running in the week-ending last Tuesday, taking their “net long” gold position (of bullish minus bearish bets) to its lowest level since mid-June.
 
Speculative betting against silver prices meantime rose for the 6th week in a row, up to a level only surpassed 3 times in the last 20 years, all in early summer 2014 when the metal began a rapid 16% rally.
 
“Money managers have contributed to the fall in both gold and silver prices,” says the commodities team at Germany’s Commerzbank.
 
“Given that prices have dropped further since the reporting date, net long positions have no doubt also been reduced further.”
 
“The market remains under pressure,” Reuters quotes analyst Andrey Kryuchenkov at Russian bank VTB Capital in London, “from expectations for a stronger US currency in the longer run.
 
“Physical buyers are still absent, unwilling to support prices on fresh lows.”
 
With Tokyo closed for Japan’s national Respect for the Aged holiday, “Liquidity was already on the thin side,” says the Asian desk of Swiss refining and finance group MKS, “but once the Shanghai Gold Exchange opened up more physical interest began to trickle in – finally!”
 
Despite slipping from Friday’s close in Yuan terms, Shanghai’s main gold contract more than doubled its premium Monday to more than $5 per ounce over comparable London quotes.
 
With Scottish opinion polls meantime putting the “Yes” and “No” camps neck-and-neck for Thursday’s independence vote, the British Pound held onto last week’s bounce from new 2014 lows.
 
That cappped gold prices for UK investors at £760 per ounce, some 0.6% above Friday’s 7-week low.
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Sep 08

India’s Gold Deposit Scheme Targets "Easy" 200 Tonnes

Gold Price Comments Off on India’s Gold Deposit Scheme Targets "Easy" 200 Tonnes
Refiner MMTC-Pamp aims to mobilize household gold as CAD hits 1-year high…
 

INDIA’s much-awaited gold deposit schemes can “easily” unlock 200 tonnes per year from existing household stockpiles, according to state-backed refiner MMTC-Pamp, helping boost legal supplies and reduce smuggling in the world’s No.1 gold-buying nation.
 
“The annual [private-sector] requirement is around 900 tonnes,” said managing director Rajesh Khosla last week, “and the economy can afford to import around 700 tonnes.
 
“The balance will be easily bridged by effective schemes.”
 
With no domestic mine output, India’s world-beating gold demand has to date been met by imports from abroad. But surging demand on the gold price crash of spring 2013 helped take the country’s current account deficit (CAD) with the rest of the world to record levels near 5% of GDP.
 
Faced with a sharp drop in the Indian Rupee’s exchange rate, the government and central bank responded with a raft of anti-gold import rules, effectively shutting legal inflows in summer 2013. Since then, and with perhaps 25,000 tonnes of gold held by Indian households and temples – the world’s heaviest buyers until mid-2013’s strict rules – banks and government officials have repeatedly talked about “mobilizing” some of India’s existing stockpiles.
 
MMTC-Pamp – a joint venture between the state-owned refiner MMTC and Switzerland’s Pamp – says it is now working with commercial banks to launch a savings account with a 3-year term, into which consumers can deposit physical gold.
 
The depositor’s gold will be sold to help meet new consumer demand. Then, on maturity, says managing director Khosla, “the interest is [paid] not in Rupees but in gold and the investor has more gold in the account.”
 
Similar gold deposit schemes announced by the All India Gem & Jewellery Trade Federation last October as ‘Suvarna Nivesh Yojna’ still have yet to launch, because although “the previous regime was happy, [it] could not decide upon” details, according to the GJF.
 
Illegal gold smuggling into India since the anti-import rules were introduced last summer has been estimated at perhaps 200 tonnes by market-development organization the World Gold Council.
 
In the last 2 months alone, security agents at Delhi’s Indira Gandhi Airport have recovered nearly 6 kilograms of gold – worth a quarter of a million US Dollars – from toilets in Terminal 3.
 
“The toilets,” says India Today, “are being used by inbound smugglers as a place to leave the gold, where it is picked later by an accomplice, almost always an airport employee.”
 
A slight relaxation of India’s gold rules in June saw imports of the metal jump 65% from May, helping take India’s CAD to a 1-year high during the April-June quarter at 1.7% of GDP.
 
News of that surge comes as trade body the GJF says investment gold sales fell 70% over the last 5 months compared with the same period in 2013.
 
The rising import level, says precious metals analyst Jonathan Butler at Japanese conglomerate Mitsubishi, “adds to evidence that physical gold demand in India is improving.
 
“With the busy wedding and festival season now getting underway, this may indicate a degree of price support for gold from the physical side in the coming weeks.”
 
Despite failing to roll back the key anti-gold import rules as many jewelers and supporters expected, India’s new BJP government – led by Narendra Modi – is likely to be relaxed about the rising CAD, other analysts believe.
 
“The deficit is getting easily financed,” Bloomberg quotes Nomura bank’s chief economist in Mumbai, Sonal Varma.
 
“As the economy grows, imports will grow, so there will be some widening in the CAD. But we don’t expect it to be above sustainable levels.”
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Aug 28

China Leads "Strong Recovery" in PV Silver Demand

Gold Price Comments Off on China Leads "Strong Recovery" in PV Silver Demand
Global photovoltaic silver demand seen rising 5-10% in 2014…
 

A SHARP turnaround in the global PV market, led by China, is set to boost world silver demand from the solar-cell industry by 5-10% in 2014 according to leading analysts Metals Focus.
 
The photovoltaic industry – which prints conductive silver inks onto PV cells to collect and conduct solar energy as electricity – saw a “hemorrhage of silver use” over 2012 and 2013, data consultancy Thomson Reuters GFMS said in its Silver Survey this spring, published for the US-based Silver Institute.
 
Global over-capacity, plus the loss of those Chinese, US and European government subsidies which had created it, met a drive to replace or reduce the amount of silver used in each cell after the metal hit near-record prices in 2011.
 
2014 in contrast has now seen a “revival” of PV demand, says metals analyst Robin Bhar at French investment and London bullion bank Societe Generale, with the industry “emerging in strong health” according to private consultancy Metals Focus.
 
Indeed, amongst renewable energy sources, says a new report from the International Energy Agency published Thursday, there is a “stronger outlook” for solar than other technologies such as windfarms.
 
“After surging early this decade,” says Bhar at Societe Generale, “demand from the solar industry went through a tough period in 2012 and early 2013…[with] a drop in the pace of new installations globally.”
 
But now, and helping drive a 90% drop in silver stockpiles at the Shanghai Futures Exchange (SHFE) over the last 18 months, the market “has seen a turnaround, with 2014 on course to see a record amount of additions of Chinese solar capacity.”
 
Export data further suggest that China’s sales of PV cells to foreign buyers have also “risen appreciably,” Bhar adds.
 
“Following a difficult 2012 and early 2013,” agrees London-based consultancy Metals Focus, “the solar industry appears to have emerged in strong health,” with last year seeing a 27% rise in global installations on one estimate.
 
Reviewing PV industry forecasts for 2014, “we would not be surprised to see global installations comfortably hit a new record high,” their report adds, “perhaps exceeding 45 gigawatts.”
 
Total PV capacity worldwide ended 2013 around 140 GW on leading estimates. Thursday’s IEA report says that will rise to 400 GW by 2020 on its baseline forecasts, with potential to reach above 500 GW if “ambitious policy aims” in the Middle East and other regions are put into action. But further drops in unit costs will also be needed.
 
Even as silver prices traded 60% below 2011’s spike to $50 per ounce, thrifting and substitution saw the PV market’s silver demand drop 21% in 2013, according to Thomson Reuters GFMS.
 
That was despite 10% growth in solar cell output, as average silver use was cut from 0.2 grams per cell to 0.14g.
 
Further thrifting in 2014 could cut silver use per cell by another 10%, Metals Focus now estimate – “significant, but pale in comparison to the rate of thrifting that was seen back in 2011.”
 
Totaling 1,260 tonnes, last year’s PV silver demand accounted for some 3.8% of global consumption on GFMS’s data.
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Aug 22

Gold Price “Awaiting Yellen’s Speech”, Next Key Support “Could See $1240”

Gold Price Comments Off on Gold Price “Awaiting Yellen’s Speech”, Next Key Support “Could See $1240”

GOLD PRICES headed for their lowest Friday close in 12 weeks in London today, trading sideways at $1281.31 per ounce on Friday morning as Fed Chair Yellen speaks later this afternoon.

Silver recovered little from its 11-week low this Thursday, trading at $19.53 per ounce on Friday morning. Both gold and silver price touch their lowest level within two months.

The American stock markets rose, whereas the European indices slipped as the Dollar held on to its strong position.

Crude oil was on track on Friday and continues its one month drop as Russia sent its lorries into Ukraine after more than a week.

The world’s largest gold-backed exchange traded fund SPDR Gold Trust (NYSE Arca: GLD) increased its holding on Thursday to 800.08 tonnes, the third increase this week.

“Gold was on the defensive right after the Fed minutes,” according to Commerzbank, “Key support remains between $1270 – $1275. A break of those levels and we could see $1240 in a short amount of time.”

“The move is bearish and opens up a full retracement to the 1240 low from June 3rd,” agrees Scotia Mocatta’s daily update note.

“(Gold price) has been unable to sustain recent moves above $1,300,” said analyst Tom Kendall from Credit Suisse.

Credit Suisse continued in their note: “Geopolitical headlines have not been sufficient to draw in consistent new buying, and physical flows into Asian markets remain uninspiring but clearly the motivation to short the metal is also subdued at present.”

Gold prices in Shanghai – the central market for the world’s No.1 consumer nation – extended their $2.86 per ounce premium above the London quote of $1279.45.

Meantime in Taiwan, the gold bullion demand made a 36.45% jump from 2013’s first half of 7.05 tonne to this year’s first half of 9.62 tonne.

Over in India, Finance secretary Arvind Mayaram yesterday stated that the curbs on gold imports will not be eased any time soon. The rule imposed last year made it mandatory that a fifth of all bullion imported had to be exported.

“Markets are awaiting Fed Chair Yellen’s speech at the Jackson Hole Symposium. The price action suggests expectations of Yellen sticking to the ‘lower for longer’ script, reiterating that there remains considerable slack in the labour market.” comments ANZ Commodity Daily.

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Aug 21

Central Banks Buying Gold "Firmly" in 2014

Gold Price Comments Off on Central Banks Buying Gold "Firmly" in 2014
Countries “not aligned” with US views likely to track Russia, buy gold…
 

GOLD BUYING by central banks has continued ahead of recent averages in 2014, according to several analysts’ notes.
 
“Central banks remained firmly on the buy-side of the gold market” in the first half of the year, writes Macquarie Bank analyst Matthew Turner in London.
 
Based on official gold bullion reserves as reported to the International Monetary Fund, Turner notes that his net figure of 113 tonnes for central bank gold-buying in H1 does not account for a 14-tonne drop in Ecuador’s holdings – withdrawn as part of a Dollars for gold swap with US investment bank Goldman Sachs, and set to be unwound with the gold bars returned in two years’ time.
 
“The Ecuador-Goldman Sachs deal,” agrees another London-based analyst, “simply reiterates that gold is a highly liquid asset that can readily be converted into cash.” A similar deal with the same bank was last year begun but dropped by the socialist government of Venezuela, which under the late Hugo Chavez withdrew its gold bullion reserves from London’s international trading center in what commentators called an attempt to “guard against” US seizure or interference with the Latin American state’s assets overseas.
 
According to IMF data, Moscow’s gold buying in 2014 rose from 5 tonnes in the first 3 months of 2014 to 55 tonnes between April and June, when the Ukraine crisis intensified after Russia’s annexation of Crimea in March. “Given Russia’s FX reserves have fallen,” says Turner, that “might reflect a preference for gold over government bonds in the current political environment.”
 
Also noting the increase in Russia’s gold reserves, “We would expect a range of countries who are not aligned with the USA to see ever greater attraction in holding gold as a reserve asset,” writes Mitsui analyst David Jollie, pointing to “indications” in reporting data which suggest Moscow may have reduced its holdings of US Treasury debt. 
 
Even though the US Dollar remains the No.1 central-bank reserve currency, “Any country that might come into political disagreement with the USA might have some fears that it might not be able to use its Dollar reserves,” says Jollie. “And such a country might also have little desire to fund the US Government’s budget deficit too by owning US Treasuries.”
 
The largest foreign holder of US Treasury bonds, China has not updated the world on its bullion reserves since 2009, when it revised its reported holdings 75% higher to 1,054 tonnes. Beijing is widely suspected of buying gold since then, with unreported central bank purchases explaining a gap between China’s private-sector demand and visible supply.
 
“China’s nearly $4 trillion in [foreign currency] reserves,” wrote British MP Kwasi Kwarteng – author of new book War and Gold: A Five-Hundred-Year History of Empires, Adventures and Debt – last month in the New York Times, “give it plenty of ammunition to claim leadership in the creation of a new monetary order.”
 
Kwarteng suggests Beijing may be buying gold to prepare for a bullion-backed Yuan – “not in the immediate future…[but] in, say, 20 years.”
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Aug 20

Gold Trading Sideways ahead of FOMC Minutes Release

Gold Price Comments Off on Gold Trading Sideways ahead of FOMC Minutes Release

GOLD PRICES were stuck below $1,300 on Wednesday morning in London, as strong US housing data and American stock markets bolstered the US economy. Gold touched $1,294 per ounce by 10:45am in London.

A currently strong US dollar further weighed on the gold price.

Silver remained close to the 2-month low to which it dropped yesterday, trading at $19.47 per ounce on Wednesday morning. Other precious metals also came under pressure with platinum at $1,430 and palladium at $877 per ounce.

While the American stock markets rose, the European indices halted their recent rally with the German DAX down -0.41%, the British FTSE -0.29% and the French CAC 40 -0.45%.

Both gold and silver ETFs have increased their holdings this week. The world’s largest gold-backed exchange traded fund SPDR Gold Trust (NYSE Arca: GLD) increased by 0.19% and rose to 799.19 tonnes. SPDR Gold Trust is one of the ten largest holders of gold worldwide and their shares have been sought by established hedge fund managers such as George Soros and John Paulson.

On Tuesday, the gold price slipped after the US Census Bureau announced that both the US housing starts and building permits came out better than expected. Housing starts in July were up by 15.7% from June. The surge suggests that the housing market has recovered after stalling in the second half of 2013. The housing market index that was published on Monday by the NAHB also revealed that the US homebuilder confidence rose to 55, compared to 53 in the month before.

Meanwhile, investors were expecting the FOMC minutes which will be released later today. The report by the Federal Open Market Committee reflects the Fed’s monetary policy outlook and future interest rates and is hence considered a possible driver for gold. Furthermore, the Central Bankers symposium in Jackson Hole is due to start on Thursday.

“With possible market expectation of a dovish report, the event risk and price bias should lie towards a more hawkish report. This would, in general, be negative for precious metals,” said analyst Walter de Wet from Standard Bank.

In the meantime, Russia’s president Vladimir Putin and his Ukrainian counterpart Petro Poroshenko agreed on holding talks as part of a summit in Minsk. It will be their first meeting since the D-Day anniversary at the beginning of June. A gun battle still broke out in the centre of the rebel-held Ukrainian city of Donetsk yesterday.

Furthermore, the Islamist terror organisation Isis claimed to have beheaded a US journalist identified as James Foley. According to the UK foreign secretary Philip Hammond, the video appeared to be genuine.

Back in Europe, the rebound of Europe’s largest economy, which contracted in the second quarter, is said to be impeded by the international geopolitical tensions. “The economic outlook for the German economy has clouded over the middle of the year in response to unfavourable international news,” commented the Bundesbank in its monthly report that was released on Tuesday.

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Aug 19

A Guide to Analyst Recommendations

Gold Price Comments Off on A Guide to Analyst Recommendations

It is helpful for gold investors to understand analyst recommendations in order to make good investment decisions about gold explorers, producers and other types of mining companies.

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