Gold has a bullish posture considering the metal has been able to rise despite a bearish factor — expectations for higher U.S. interest rates this year, said Jeffrey Nichols, managing director of American Precious Metals Advisors and senior economic consultant for Rosland Capital. Hedge funds and institutional speculators increased their already net-long gold position Thursday, Nichols said. “The thinking is, ‘If it isn’t going down despite expectations of a rate increase by the Fed and a stronger U.S. dollar, then it must go up!’” Nichols added.
“In recent weeks, with gold trading in a narrow range and good technical support apparent to all, perceptions of momentum have also shifted and today traders just didn’t want to lose out — or bet against — a rising market,” he added. Bullion has risen 9.6 per cent this year as political uncertainty over the US president Donald Trump’s unorthodoxy, European elections and Brexit ruffle confidence. Mr Trump will deliver his first speech to Congress this week, after the US Treasury secretary Steven Mnuchin on Thursday said the impact of fiscal stimulus this year on the economy may be limited.
Australia produced a record 314 tonnes of gold in 1997, according to Ms Close.
A weaker Australian currency against the US dollar lifted the local gold price to a high of A$1,856.48 an ounce in June, Reuters data showed.
Heavy rainfall in far Western Australia – the country’s main gold mining region – has been affecting mine work and could curb first-quarter output, getting 2017 off to a slower start, according to Ms Close.
Cyclones, snow and floods in Australia
The tropics are affected by the extremes of cyclones in the wet season and the inland deserts can remain totally dry for years whilst rains can produce floods. The wettest months in the southern capitals are from May to July.
Cyclones are a tropical weather phenomenon. They are usually encountered in Australia between November and April, and they mostly take place in the north of the country. The Western Australian and Northern Territory coasts, as well as the Queensland coast, are the usual places that cyclones occur.About six cyclones happen in Australia every year.
Dollar Weakness and Political Uncertainty Continues to Fuel a Major Gold Rally
Friday February 24, 2017 18:06
Successfully breaking above resistance at 1242 yesterday, traders harnessed that momentum for a second day, moving gold prices to a level not seen since November 11 of last year. The last time gold traded at 1240 was immediately following the presidential election. The strong correction began on November 8, and would result in a $200 decline in gold prices.
Gold Gains 9% in 2017
Yesterday, trading activity resulted in a successful breach of resistance at $1242, feeding upon the upside momentum. Since the rally began in December of last year, bullish sentiment had lost momentum with traders unable to move the price needle past this level of resistance. During the first week of February, bearish sentiment prevailed, resulting in a mild correction and taking gold prices down to $1216 per ounce. But, over the last week and a half, bullish momentum has reentered the market and reignited this major rally of 2017. The net result has been a 9% increase in value this year.
Demand is modest in nickel’s market. There is no negative news released from Indonesia’s export policy on nickel ore yet. LME nickel will strengthen on Monday.Nickel ore inventories at seven major Chinese ports dropped at a quicker pace last week after a small decline in the week ending February 17.Nickel ore inventories at seven major Chinese ports were down 265,000 mt last week from the decline of 50,000 mt two weeks ago.
Operating rates at battery producers will remain low in a short term and spot transaction will be quiet. Spot lead should rise RMB 100/mt and trade at RMB 18,800-18,900/mt on Monday.
Investment & trading in securities market is always subjected to market risks, past performance is not a guarantee of future performance.
CapitalStars Investment Adviser: SEBI Registration Number: INA000001647
Our Some Best Services Read it Here…
www.capitalstars.com | T:+91-731-6790000,6669900