SWOT Analysis – Where are Gold Prices Headed?

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SWOT Analysis - Where are Gold Prices Headed?

SWOT Analysis – Where are Gold Prices Headed?

Strengths

  • The best behaving changed steel for a week was platinum, however still down -2.35 percent. Price movement was driven by increasing automobile direct in a European Union, reports Market Realist, that rose 14 percent in February. Platinum and palladium is used in a prolongation of catalytic converters.
  • Germany announced this week that it wants half of a bullion pot behind by a year 2020, reports Bloomberg. Bundesbank, a country’s executive bank (which has bullion in London and New York), has repatriated 1,400 metric tons, or 41.5 percent, of Germany’s bullion pot to Frankfurt.
  • Even yet bullion prices haven’t finished many this month, investors are still pouring money into bullion exchange-traded funds, reports Bloomberg. Gold ETF resources continue to increase, with land now nearby a two-year high.

Weaknesses

  • The misfortune behaving changed steel for a week was silver, down -3.96 percent. The changed steel plunged on Wednesday, and stays low today, especially driven by a stronger U.S. dollar.
  • The U.S. dollar gained this week opposite all vital peers, causing bullion traders and analysts to spin bearish for a third time in 4 weeks, according to Bloomberg. The dollar was increasing on prospects for aloft U.S. seductiveness rates, in spin slicing a changed metal’s seductiveness as an choice investment. This week bullion prices headed for the biggest weekly unemployment given November.
  • As seen in a draft below, Bloomberg reports that a bullion movement pointer is flashing a bearish pointer as a metal’s convene has started to fizzle. Head of metals investigate for Societe Generale, Robin Bhar, told Kitco News that a new bullion cost convene looks unsustainable. Bhar cited financial misunderstanding and expectations that a U.S. and tellurian economies will tumble into retrogression have been a factors behind a move, reports Kitco, nonetheless these seem to be impassioned scenarios.

Opportunities

  • A distinguished forecaster from JPMorgan Chase believes investors are improved off betting on gold, explaining that a market’s convene is in trouble. An essay on CNBC clarifies Marco Kolanovic’s perspective that a renouned trade of being prolonged movement bonds opposite a brief position on SP 500 is being unwound. Kolanovic is widely followed by a sidestep account attention and concludes a convene in a broader marketplace has been driven by brief covering of bets that a marketplace would fall, so if bonds reverse, bullion should be a customer of a shift.
  • Reuters reports that a 19-day strike by Indian jewelers finally came to an finish on Saturday, after supervision certain they will not be “harassed” by a dig dialect in collecting a new tax. The jewelers went on strike during a commencement of Mar following a reintroduction of a 1 percent dig avocation on bullion valuables after 4 years.
  • Klondex Mines reported fourth entertain and year-end formula after marketplace tighten on Thursday.  The formula were certain with costs entrance in improved than expectations and giveaway money upsurge aloft than forecast.  Klondex forecasts a 16 percent boost in prolongation for 2016, while many companies are flat-to-negative on growth.  Cash balances increasing 30 percent for a year.  We design serve certain developments as we see 2016 progress.

Threats

  • A wholly-owned auxiliary of Kinross Gold Corp., Compania Minera Maricunga (CMM), was told by Chile’s environmental regulatory government of a fortitude starting a authorised process, according to a news recover on Mar 21. The fortitude will find to need CMM to tighten a Maricunga mine’s H2O pumping wells located in a Pantanillo area of Region III due to drought. Kinross responded observant it is committed to obliged environmental management.
  • James Bullard, boss of a Federal Reserve Bank of St. Louis, told process makers this week that they should cruise lifting seductiveness rates during their subsequent meeting, reports Bloomberg, that would assistance boost a greenback. Gold has depressed to a lowest in a month as a dollar allege saps adult direct in further to some process makers observant that new mercantile information justifies tighter financial policy.
  • Gold miners are vouchsafing a sidestep grow, writes Peter Ker. The cost of bullion has neared record highs in Australian dollar terms, with a largest bullion miner on a ASX determining to welcome hedging. On Thursday, Newcrest Mining reliable that a apportionment of a bullion constructed during a Telfer cave in Western Australia has been hedged until 2018.  This could weigh that miners don’t trust a high bullion prices can last.

 

 

 

Courtesy: Frank E. Holmes

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