The headline number may have been a “disappointment” but the revisions being made to previous figures offered a healthy counter-balance to be sure. Overall, the data indicate a “pause” in the US recovery but not one that would impel a nice fat little QE3 package.
Far from being the usual boring consensus event for gold prices, the inaugural Dubai Multi Commodities Centre Precious Metals Conference struck a decidedly controversial note. It was good to see precious metal analysts battling it out with some contrarian views.
Precious metals prices headed lower this morning as the final trading session of the week got underway in New York. Yesterday’s “Fedspectations” turned down a notch as market participants had somewhat bigger news "fish" to fry this morning.
Analysis of the platinum group metal (PGM) markets looking at traditional supply and demand fundamentals does not explain the price levels for these metals today. Only when investment inflows are taken into account does the picture become clear.
Investors who don't think gold is a bubble but fear they've missed the boat need to look at the short- and long-term factors supporting gold at these historically high price levels. In the near-term, gold prices are buoyed by weakness in the US dollar.
The Clarus Securities analyst believes several gold juniors operating in West Africa are prime takeover targets and expects merger and acquisition (M&A) activity to heat up as the major gold producers seek to replenish their project pipelines.
The ongoing decline in the precious metals complex continued overnight as a stronger dollar and a slightly lower euro coupled with losses in the Nikkei index conspired to keep sellers active and buyers less so.