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Gold and Silver: Prospects for 2012

Gold and Silver: Prospects for 2012

 

 

In advance of New Year numerous analysts are trying to look into the near future. UBS thinks that the Swiss Franc and gold will lose their status of “safe haven” assets in 2012, unlike the US Dollar, US and Japanese T-bonds. The reasons include rather volatile gold and the SNB’s currency intervention. The volatility of gold has reached its highest level since 2009.Other banks are reducing the share of gold in their investment portfolios. In particular, HSBC have reduced its investments in gold from 15% down to 6% of the capital.

 

 

 

 

 

 
According to the CFTC, on Dec 16th big-scale investors reduced their long trades in gold by 8248 contracts and increased their short trades by 924 contracts. Small-scale investors reduced their long trades by 2755 contracts and increased their short trades by 3320 contracts. As for silver, big-scale investors increased both long and short trades, which suggests high volatility in the market of silver.
The eurozone crisis keeps pressing the markets. At the weekend Fitch Ratings warned France and 6 other eurozone members about possible rating cuts. In the meantime, Mario Draghi confirmed that the ECB was not going to expand the QE program. Instead, Europe’s central bank will provide 17 eurozone countries with unlimited 3-year loans.
 
China is said to see a manufacturing slowdown in December for the 2nd month in a row. Some analysts expect Chinese bank to conceal the actual lending data. The estimated sum is $622B, but there are concerns that the real figures can be much higher, which suggests that the banks may need governmental support.
 
Near-term forecast: According to the Department of Commodity Trading of Masterforex-V Academy, gold still has a chance to resume Friday’s rally. In order to do that, the price will have to stay above 1585, and then to break and consolidate above 1596-1600. In this case, gold may rally further up to 1625, 1640. However, if the 1585 turns into resistance, gold may depreciate, thus reaching 1575 and retesting last week’s low at 1560. If the test is successful, the next potential targets are 1555-1550, 1527.
 
As for silver, it will have to consolidate above 29.10 in order to resume its rally. In this case, the price may reach 29.5 and 30. Otherwise, the price will most likely go further down to 28.5, 28 and even 27.50.
 

 

 

 

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Japanese Stock Market Goes Red Amid Stronger Yen

 

 

The current strengthening of the Japanese Yen seems to be the major reason for today’s decline seen in the Japanese stock market. This is the biggest daily decline in 2 years.
 
Publication date: 23 May 06:18 AM

Gazprom Sees Income Decline. Possible Threats For Russia?

 

Negative forecasts for Gazprom’s future have become a routine for analysts and strategists from around the world, including Russia, China, Great Britain and the USA. While some of them can be treated as a means of info wars, most doomsday predictions are so old that they shouldn’t be considered seriously by market participants.
 
Still, there are some objective negative tendencies and factors. In particular, Gazprom has recently seen an income decline. What are the reasons behind it and what are the threats to the Russian energy-dependent economy?
 
Publication date: 22 May 08:06 AM

European Stock Indices Go Red

 

 

European stock indices are trading in the red zone in advance of the forthcoming EU summit and US economic reports. European leaders are planning to discuss the ways and means to fight tax laundering.
 
Publication date: 22 May 07:24 AM

Apple Is Planning To Patent Social Camera Flash

 

 

A couple of days ago Apple, the famous tech giant, applied for another patient. This time the tech corporation is planning to patient the so-called “social camera flash”.
 
Publication date: 21 May 03:19 PM

US Stock Indices Show Weak and Multidirectional Dynamics

US stock indices are trading without any major moves as they cannot find common dynamics. Yesterday, Standard & Poor's 500 dropped down to the local low, which can affect other stock indices. However, most indices are currently trading in the green zone.

 

 
Publication date: 21 May 03:04 PM

Asian-Pacific Indices Go Red

 

 

Asian-Pacific stock indices closed today’s Asian trading session in the red zone. Yesterday, indices reached their 5-year highs. Therefore, today’s retracement looks neutral.
 
Publication date: 21 May 09:01 AM

European Stock Indices Go Red On Poor Reports

European stock indices are trading in the red zone today amid weak quarterly reports published by several European companies.
 
Publication date: 21 May 07:57 AM

Brent Comes Close To $105/b.

 

On Monday, Brent oil was trading around $105/b, taking into account positive economic stats and stock market growth along with moderate forecasts for oil demand and stocks.
 
Publication date: 20 May 05:54 PM

Investors Should Get Ready For Further Monetary Stimuli

 

 

Lower inflation in the UK amid brighter prospects of the British economy may well give the Bank of England a few extra weapons in its arsenal of economic stimuli. This is what Martin Weale, an MPC member, thinks on the issue.
 
Publication date: 20 May 05:22 PM

European Stock Indices Break Records

European stock indices have started this trading week positively and are currently trading in the green zone. Some indices keep making new 5-year highs.

 

 
Publication date: 20 May 08:55 AM