Gold Extends Losses to Third Day as Oil Slumps

Gold extended losses into a third session on Friday, dropping to a one-week low, on expectations that plunging oil prices could sap inflationary pressure, curbing the metal's appeal as a hedge. Oil hit four-year lows around USD 70 a barrel, as OPEC resisted the temptation to cut back production following a more than 30 percent plunge in prices since June. The drop in oil prices, along with the resulting strength in the dollar, hurt gold which is often seen as a hedge. 

"Precious metals declined as lower oil prices prompted concerns about deflation," said ANZ analyst Victor Thianpiriya. Spot gold had fallen 0.3 percent to USD 1,187.40 an ounce by 0741 GMT. It hit USD 1,181.30 earlier in the session - its lowest since Nov. 20. The metal has lost over 1 percent for the week, snapping a three-week rally. US gold futures slid 1 percent to a session low of USD 1,180.60. The dollar index held firm, having made notable gains versus oil-related currencies, the Canadian dollar and Norwegian crown in the previous session.

 "Gold sympathized with oil but I think there is a limit to the downward slide and we might hold USD 1,180 for now," said a trader in Tokyo, adding that the market was also eyeing the Swiss vote on central bank reserves on Sunday. The vote is aimed at preventing the Swiss National Bank from offloading its gold holdings and obliging it to hold at least 20 percent of its assets in gold, compared with 8 percent last month. 

The most-recent opinion poll showed support among Swiss voters for the initiative had slipped to 38 percent. A surprise 'yes' vote, however, could prompt the Swiss central bank to buy about 1,500 tonnes of gold over the next few years, boosting bullion prices, analysts say. "Most people in the market are already expecting a 'no' in the Swiss vote but it might still cause some sell-off. A 'yes' vote is unlikely but if it happens, we can see a jump in prices," the Tokyo-based trader said.

 Among other precious metals, silver futures slid 3 percent. Platinum is down 1 percent for the week on outflows from the metal-backed exchange-traded funds. Palladium was headed for a second weekly gain.

More information at @ MoneyControl

Gold Prices Recover on Wedding Season Demand

NEW DELHI: Gold prices recovered by Rs 20 to Rs 26,900 per ten grams at the bullion market in the national capital today on the back of wedding season demand from jewellers and retailers even as the metal weakened overseas.

Silver rose by Rs 100 to reclaim the Rs 37,000-mark on increased offtake by industrial units.

Traders said scattered demand from jewellers and retailers in view of wedding season helped gold prices to recover but a weak trend in global markets limited the gains.

Globally, gold declined by 0.40 per cent to USD 1,204.69 an ounce in Singapore.


In Delhi, gold of 99.9 and 99.5 per cent purity went up by Rs 20 each to Rs 26,900 and Rs 26,700 per ten grams, respectively, while sovereign held steady at Rs 23,700 per piece of eight grams.

Silver ready also moved up by Rs 100 to close at Rs 37,000 per kg and weekly-based delivery by Rs 580 to Rs 36,650 per kg on speculative buying.

Meanwhile, silver coins ruled steady at Rs 62,000 for buying and Rs 63,000 for selling of 100 pieces in restricted activity at existing higher levels.

Read more at:
EconmoicTimes

India's position in Corruption Perception Index improves

In a good news for India, the country has improved on its ranking in the Corruption Perception Index. In the data for the year 2014, India stands at 85th position out of 175 countries as compared to its ranking of 94 in 2013 out of 177 countries. There has been an improvement in the CPI score also for the year 2014. The score which is 38 in 2014, was 36 in the year 2013. Poorly equipped schools, counterfeit medicine and elections decided by money have been stated as some of the consequences of public sector corruption.

 "Bribes and backroom deals don't just steal resources from the most vulnerable - they undermine justice and economic development, and destroy public trust in government and leaders," the report states. Based on expert opinion from around the world, the Corruption Perceptions Index measures the perceived levels of public sector corruption worldwide. In an alarming picture painted by the CPI, not even a single country has got a perfect score and more than two-thirds score below 50, on a scale from 0 (highly corrupt) to 100 (very clean).
More on : MoneyControl

Gold Prices and the U.S. Economy

Gold prices are a good indicator of how healthy the U.S. economy is. When the price of gold is high, that's when the economy is not healthy. Why? Investors flock to gold when they are protecting their investments from either a crisis or inflation. When gold prices drop, that usually means the economy is healthy. That's because investors have left gold for other, more lucrative, investments like stocks, bonds or real estate.

To understand the economy, it's helpful to understand gold. In this article, you can track recent trends in gold prices. You'll also learn about how gold should be used by investors, the history of gold, and more about the gold standard.

More on useconomy.about.com

Japan Stock Futures Gain as S&P 500 Advances on Economy

Japanese stock futures rose, after U.S. equities advanced for the first time in three days amid an unexpected increase inconsumer confidence. The yen was little changed against the dollar.

Futures on the Nikkei 225 Index added 0.5 percent in Chicago. The yen fell less than 0.1 percent to 102.28 per dollar as of 6:53 a.m. in Tokyo. The Standard & Poor’s 500 Index (SPX) added 0.4 percent to 1,865.62. The Stoxx Europe 600 Index climbed 1.3 percent after falling 1.1 percent the previous day, the most in two weeks. Ten-year Treasury yields increased 2 basis points to 2.75 percent. Copper jumped 2 percent on speculation demand will improve as China takes steps to bolster economic growth.

An index of U.S. consumer confidence rose in March to the highest level in six years, overshadowing a separate report showing a drop in February home sales. German business confidence fell for the first time in five months. The world’s top industrial powers threatened further sanctions to deter Russian President Vladimir Putin from taking over other parts of Ukraine and suspended Russia from participating in the Group of Eight.

“The U.S. economy seemed to have cooled off from the pace it’s on toward the end of last year,” Curtis Holden, a senior investment officer at Tanglewood Wealth Management in Houston, said in a phone interview. His firm oversees about $800 million. “There may be a little relief recently that things may be stable here. Things don’t look spectacular here, but they look OK. The market is trying to piece together about how concerned should we be about things going on overseas.”

Source : - Blomberg.com

Gold Up on Safe-Haven Demand, Bullish Technicals

P.M. Kitco Metals Roundup: Gold Up on Safe-Haven Demand, Bullish Technicals

(Kitco News) - Gold prices ended the U.S. day session moderately higher Tuesday, on some more safe-haven demand that surfaced amid the simmering geopolitical situation in Ukraine. Chart-based buying was also seen as the near-term technical posture for gold remains bullish.

Gold prices are hovering not far below their recent four-month highs. April gold was last up $6.20 at $1,347.70 an ounce. Spot gold was last quoted up $7.80 at $1,348.00. May Comex silver last traded down $0.07 at $20.84 an ounce.

The Ukraine matter is still a worry among traders and investors and has moved closer to the front burner of the market place. Russian president Putin has spurned a U.S. proposal to defuse the crisis, reports said. Last weekend Putin said he would back the Crimean region seceding from Ukraine. U.S. and German officials have rebuked Putin, and reports said the European Union is set to discuss this week sanctions against Russia. A vote on the Crimean secession is scheduled for March 16, and that could be the next flashpoint in the region. The Russian occupation of Crimea is a bullish factor for the safe-haven gold market.

U.S. economic data released Tuesday was on the light side and failed to move the markets. Traders are looking ahead to next week’s meeting of the U.S. Federal Reserve’s Open Market Committee (FOMC).

The London P.M. gold fix is $1,346.25 versus the previous P.M. fixing of $1,344.00.

Technically, April gold futures closed near mid-range Tuesday. A 2.5-month-old uptrend is in place on the daily bar chart. Bulls have the overall near-term technical advantage. The gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at the March high of $1,355.00. Bears' next near-term downside breakout price objective is closing prices below solid technical support at $1,318.70. First resistance is seen at $1,355.00 and then at $1,360.00. First support is seen at Tuesday’s low of $1,337.80 and then at $1,330.00. Wyckoff’s Market Rating: 6.5

May silver futures prices closed nearer the session low Tuesday and closed at a fresh four-week low close. The bears have the slight near-term technical advantage. Prices are in a three-week-old downtrend on the daily bar chart. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at the March high of $21.74 an ounce. The next downside price breakout objective for the bears is closing prices below solid technical support at $20.00. First resistance is seen at $21.00 and then at Tuesday’s high of $21.325. Next support is seen at this week’s low of $20.61 and then at $20.25. Wyckoff's Market Rating: 4.5.

May N.Y. copper closed down 760 points at 295.55 cents Tuesday. Prices closed nearer the session low and slumped to a fresh contract and nearly four-year low. Weak economic data coming from China over the weekend has helped to sink the copper market. Prices are in an accelerating 10-week-old downtrend on the daily bar chart. Bears have the solid near-term technical advantage. Copper bulls' next upside breakout objective is pushing and closing prices above solid technical resistance at this week’s high of 307.75 cents. The next downside price breakout objective for the bears is closing prices below solid technical support at 290.00 cents. First resistance is seen at 297.50 cents and then at 300.00 cents. First support is seen at Tuesday’s contract low of 294.20 cents and then at 292.50 cents. Wyckoff's Market Rating: 1.0.

By Jim Wyckoff, contributing to Kitco News; jwyckoff@kitco.com
Follow me on Twitter @jimwyckoff

Source :  Kitco.com

Getting Started In Stocks

provided by:


So you've decided to invest in the stock market. Congratulations! In his 2005 book "The Future for Investors," Jeremy Siegel showed that, in the long run, investing in stocks has handily outperformed investing in bonds, Treasury bills, gold or cash. In the short term, one or another asset may outperform stocks, but overall stocks have historically been the winning path.

But there are so many ways to invest in stocks. Individual stocks, mutual funds, index funds, ETFs, domestic, foreign - how can you decide what is right for you? This article will address several issues that you, as a new (or not-so-new) investor, might want to consider so that you can rest more easily while letting your money grow.

Risk Taker, Risk Averse or in the Middle?
You may be eager to get started so that you, too, can make those fabulous returns you hear so much about, but slow down and take a moment to contemplate some simple questions. The time spent now to consider the following will save you money down the road.

What kind of person are you? Are you a risk taker, willing to throw money at a chance to make a lot of money or would you prefer a more "sure" thing? What would be your likely response to a 10% drop in a single stock in one day or a 35% drop over the course of a few weeks? Would you sell it all in a panic?

The answers to these and similar questions will lead you to consider different types of equity investments, such as mutual or index funds versus individual stocks. If you are naturally not someone to take risks, and feel uncomfortable doing so but still want to invest in stocks, the best bet for you might be mutual funds or index funds. This is because they are well diversified and contain many different stocks. This reduces risk - and doesn't require individual stock research.

Have much time and interest do you have for investing?
Should you invest in funds, stocks or both? The answer depends on how much time you wish to devote to this endeavor. Careful selection of mutual or index funds would let you invest your money, leaving the hard work of picking stocks to the fund manager. Index funds are even simpler in that they move up or down according to the type of company, industry or market they are designed to track.

Individual stock investing is the most time consuming as it requires you to make judgments about management, earnings and future prospects. As an investor, you are attempting to distinguish between a money-making stock and financial disaster. You need to know what they do, how they make their money, the risks, the future prospects and much more.

Therefore, ask yourself how much time you have to devote to this enterprise. Are you willing to spend a couple of hours a week, or more, reading about different companies, or is your life just too busy to carve out that time? Investing in individual stocks is a skill, which, like any other, takes time to develop.

Eggs In One Basket
It is best that you not be exposed to only one type of asset. For instance, don't put all of your money in small biotech companies. Yes, the potential gain can be quite high, but what will happen to your investment if the Food and Drug Administration starts rejecting a higher percentage of new drugs? Your entire portfolio would be negatively impacted.

It is better to be diversified across several different sectors such as real estate (a real estate investment trust is one possibility), consumer goods, commodities, insurance, etc., rather than focusing on one or two or three, as above. Consider diversifying across asset classes, as well, by keeping some money in bonds and cash, rather than being 100% invested in stocks. How much to have in these different sectors and classes is up to you, but being invested more broadly lessens the risk of losing it all at any one time.

A Portfolio for Beginners
If you are just starting out, think seriously about investing most of your money in a couple of index funds, such as one tracking the broad market (e.g. the S&P 500) and one that gives some international exposure. Maybe adding one that tracks small companies (e.g. the Russell 2000) would give your portfolio a boost.

A portfolio consisting of those three would give plenty of diversification, provide the steadier performance of large companies and be spiced up a bit with both international companies and small caps.

A Portfolio with Individual Stocks
If you are investing in individual stocks, a portfolio of 12-20 well-chosen ones will give you plenty of diversification and probably will not be too many to follow regularly. However, you will need to ensure that you fully understand each company, from their businesses to their risks. If you plan on investing in only stocks, make sure to spread the funds across different sectors such as healthcare, technology, small cap and big cap.

If you don't have the time or desire to pick as well as follow that many stocks, consider investing in a mixture of index funds and individual stocks. Another consideration, especially if starting out with limited funds, is that investing in 12-20 stocks may not be feasible, so having the majority of your money in some funds would provide the stabler returns those tend to generate while maybe half a dozen individual stocks would give your portfolio an extra kick.

Time to Invest
Once you've determined the shape of your portfolio, it is time to invest. Find a broker you are comfortable with, either an online broker or one with a local office or both. Call and talk with this person, if necessary. Then, fill out the paperwork, deposit some money and open an account.

After deciding what to buy, don't buy all at once, but enter slowly. What if you invested all your money just before a market downturn? Being in the red that quickly wouldn't do much for your confidence. Plan to take several months to invest all of your money to minimize any market timing risk. Finally, remember to set aside time each week to review or catch up on the news for your investments.

Keep AddingAs your experience grows, your asset allocation decisions will probably change. You could adjust your portfolio on a regular basis, say every year or so, by selling some of one type of investment and buying more of another. You could also adjust your portfolio by adding additional funds to those areas in which you want to increase exposure.

These additional funds can be used to expand the number of securities you hold or can be added to existing holdings. Do this on a regular basis and before you realize it, you'll have a substantial portfolio that will help fund your retirement, pay for a second home, or meet whatever goals you set when you started you investing journey.

Conclusion
Before you jump into the stock market, spend some time thinking about what you want to accomplish and how to do that while staying within your risk tolerance levels. Also consider how much time you have to devote to investing. Doing this before committing those first dollars will go a long way toward protecting you from the emotional rollercoaster of investing first one way, then another, never really knowing why you are changing your mind. Careful thought before and during your investing career will do more to help your results than trying to chase the latest hot stock. After all, it's your money - you should know what you are doing with it and why.

by Jim Mueller
Jim Mueller started his career as a scientist, earning his advanced degree in biochemistry and molecular biology from Washington State University. He has since become a self-taught investor and financial writer. He is also a regular contributor to The Motley Fool.

Read more (Source): Nasdaq.com