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Showing posts with label GOLD. Show all posts
Showing posts with label GOLD. Show all posts

Gold up 4th straight wk, Deutsche quits gold price-setting

Sunday, January 19, 2014 | 9:57 AM

London (Jan 19)   Gold rose on Friday as weakness in US equities, strong fund buying and Asian physical demand lifted bullion to its fourth consecutive weekly gain.
The market was surprised by news of Deustche Bank withdrawing from gold and silver benchmark setting, or fixing, as German regulators investigate suspected manipulation of precious metals prices by banks.
Deutsche, one of five banks involved in the twice-daily gold fix for global price setting, said Friday it was dropping out of the process after withdrawing from the bulk of its commodities business.
Gold's recent rise has been supported by a drop in equities early in 2014 following a record run-up in stocks last year. However, analysts said that a rising interest-rate environment and a better economic outlook could pressure gold.
"In the long run, we are likely to see selloffs in gold especially with more Fed tapering later this year," said Thomas Capalbo, a precious metals trader at Newedge, a brokerage in New York. Spot gold, which fell initially, climbed 0.8 percent to $1,252.11 an ounce by 2:45 p.m. EST (1945 GMT). For the week, it was up 0.5 percent, extending its weekly winning streak to four - its longest rise since September 2012. US gold futures for February delivery settled up USD 11.70 at USD 1,251.90 an ounce, with trading volume about 40 percent below its 250-day average, preliminary Reuters data showed. Gold rose on Friday against the headwinds of a stronger dollar after fresh US data supported the view the world's largest economy is improving enough to keep the Federal Reserve's stimulus-reducing measures on track.
Data showed US industrial output rose at its fastest clip in 3-1/2 years in the fourth quarter as factory activity closed out the year on a strong note, a sign of the economy's brightening prospects. PHYSICAL BUYING In China, physical gold premiums on the Shanghai Gold Exchange rose on Friday.
Buying from China, the world's biggest gold consumer, has been robust in recent weeks ahead of the Lunar New Year holiday on January 31. Among other precious metals, silver rose 1.2 percent to USD 20.29 an ounce.
Platinum group metals were supported by supply worries as members of the South Africa's Association of Mineworkers and Construction Union voted in favour of a strike over wages at the world's third-biggest platinum producer Lonmin . Platinum gained 1.7 percent to USD 1,448.99 an ounce, while palladium was up 0.5 percent to USD 743.50 an ounce.
Source : gold-eagle

Gold Up for 4th Week; 2013 vs. 2014 US Mint Bullion Sales Starts

New York (Jan 19)  Gold and silver scooped up their fourth straight week of gains and gold notably closed at a five-week high.
In bullion coin news, this week the U.S. Mint introduced its 2014 American Eagle silver coin. Its opening sales and those of the 2014 American Eagle gold bullion coins follow further below.
On Friday, gold for February delivery advanced $11.70, or 0.9%, to settle at $1,251.90 an ounce on the Comex division of the New York Mercantile Exchange. The close was gold’s highest since ending at $1,257.10 an ounce on Dec. 11. Gold prices rose $5, or 0.4%, on the week.
Gains have come even as more analysts turn bearish. In a MarketWatch article on Friday entitled "Gold contrarians say it’s time to start buying," the piece quotes Dennis Gartman, editor and publisher of The Gartman Letter:
"The analyst landscape is uncommonly bearish. Even the ‘gold bugs’ are neutral of gold and that is stunning, really." His view: it’s "time to be quietly bullish."
This week, gold tended to rise as equities and the U.S. dollar fell. The yellow metal also got a boost on Thursday when a report on U.S. inflation showed consumer prices increased in December by the most in six months, though the annual inflation level was cited by economists as tame.
Gold Outlook
Most participants forecast higher gold prices next week. The survey has been on track with accurate majority predictions since missing the first weekly gain in gold’s current streak of four.
"In the Kitco News Gold Survey, out of 33 participants, 27 responded this week. Sixteen see prices up, while eight see prices down and three see prices trading sideways or are neutral," reports Kitco.
"Several survey participants who see higher prices said they expect improving technical charts may support the yellow metal… Those who see weaker prices next week think the current rally in gold won’t last…"
Gold prices on the year are up 4.8% after dropping 28.3% in 2013 for its worst annual loss in 32 years.

Silver, Platinum and Palladium Futures

Snapping a three-session losing streak, silver for March delivery rose a quarter, or 1.3%, to close at $20.30 an ounce. Silver hit its own nearly five-week high, but on Monday at $20.39 an ounce. Silver prices finished the week stronger by 8 cents, or 0.4%.
In other precious metals futures on Friday:
  • April platinum rose $22.60, or 1.6%, to end at $1,454.10 an ounce.
  • Palladium for March delivery added $4.65, or 0.6%, to finish at $748.55 an ounce.
For the week, platinum surged 1.2% while platinum added 0.3%.
Source : gold-eagle

U.N. Says Lag in Confronting Climate Woes Will Be Costly

Thursday, January 16, 2014 | 8:55 AM


Nations have so dragged their feet in battling climate change that the situation has grown critical and the risk of severe economic disruption is rising, according to a draft United Nations report. Another 15 years of failure to limit carbon emissions could make the problem virtually impossible to solve with current technologies, the experts found.
Delay would likely force future generations to develop the capability to suck greenhouse gases out of the atmosphere and store them underground to preserve the livability of the planet, the report found. But it is not clear whether such technologies will ever exist at the necessary scale, and even if they do, the approach would likely be wildly expensive compared with taking steps now to slow emissions.
The report said that governments of the world were still spending far more money to subsidize fossil fuels than to accelerate the shift to cleaner energy, thus encouraging continued investment in projects like coal-burning power plants that posed a long-term climate risk.
While the spread of technologies like solar power and wind farms might give the impression of progress, the report said, such developments are being overtaken by rising emissions from fossil fuels over the past decade, especially in fast-growing countries like China. And one of the most important sources of low-carbon energy, nuclear power, is actually declining over time as a percentage of the global energy mix, the report said.
Unless far greater efforts are made to reduce emissions, “the fundamental drivers of emissions growth are expected to persist despite major improvements in energy supply” and in the efficiency with which energy is used, the report declared.
The new warnings come in a draft report from the Intergovernmental Panel on Climate Change, a United Nations panel of climate experts that won the Nobel Peace Prize in 2007 for its efforts to analyze and communicate the risks of climate change. The report is not final, but a draft dated Dec. 17 leaked this week and was first reported by Reuters. The New York Times obtained a copy independently.
In the dry language of a technical committee, the draft outlines an increasingly dire situation.
Even as the early effects of climate change are starting to be felt around the world, the panel concluded that efforts are lagging not only in reducing emissions, but in adapting to the climatic changes that have become inevitable.
It is true, the report found, that the political willingness to tackle climate change is growing in many countries and new policies are spreading, but the report said these were essentially being outrun by the rapid growth of fossil fuels.
While emissions appear to have fallen in recent years in some of the wealthiest countries, that is somewhat of an illusion, the report found. The growth of international trade means many of the goods consumed in wealthy countries are now made abroad — so that those countries have, in effect, outsourced their greenhouse gas emissions to countries like China. (Emissions in the United States rose slightly in 2013, but are still about 10 percent below their 2005 levels, largely because of the country’s newfound abundance of natural gas, which produces less greenhouse gases than burning coal.)
The Kyoto Protocol, an international treaty meant to limit emissions, has “not been as successful as intended,” the report found. That is partly because some important countries like the United States refused to ratify it or later withdrew, but also because of flaws within the treaty itself, the report found. The treaty exempted developing countries from taking strong action, for instance, a decision that many experts have said was a mistake in retrospect.
Efforts are underway to negotiate a new international treaty to replace the Kyoto Protocol, but it is not even supposed to take effect until 2020, and it is unclear whether countries will agree on ambitious goals to limit emissions. It is equally unclear how much political support a new treaty will gain in China and the United States, the world’s largest emitters.
The Obama administration is pushing for a deal, but any treaty would have to be ratified by the Senate; many Republicans and some coal-state Democrats are wary, fearing economic damage to the country.
The new report suggests, however, that the real question is whether to take some economic pain now, or more later.
Nations have agreed to try to limit the warming of the planet to 3.6 degrees Fahrenheit above preindustrial levels. Even though it will be exceedingly difficult to meet, this target would still mean vast ecological and economic damage, experts have found. But the hope is that these would come on slowly enough to be somewhat manageable; having no target would be to risk catastrophic disruption, the thinking goes.
As scientists can best figure, the target requires that atmospheric concentrations of carbon dioxide, the main greenhouse gas, stay below 500 parts per million. The level recently surpassed 400, and at present growth rates will surpass 500 within a few decades.
If countries permit continued high emissions growth until 2030, the draft report found, the target will likely be impossible to meet, at least without a hugely expensive crash program to rebuild the energy system, and even that might not work.
If emissions do overshoot the target, the report found, future generations would likely have to develop ways to pull greenhouse gases out of the air. It is fairly clear this will be technically possible. It could be achieved, for instance, by growing bioenergy crops that take up carbon dioxide, burning the resulting fuel, and then injecting the emissions into underground formations. But the large-scale use of land to grow energy crops would compete with food production, already under strain as a consequence of the planetary warming.
Machinery might be developed that could directly extract greenhouse gases from the air; in fact, early work on such systems has begun. But experts have said the costs, safety and practicality of such techniques cannot be foreseen today. They believe it would be much cheaper to find ways to avoid putting the gases into the air in the first place.
The leaked draft is the third and final segment of a major report that the climate change panel is completing in stages in 2013 and 2014. The first segment, published in Stockholm in September, reviewed the fundamental physical science of climate change, finding a 95 percent or greater likelihood that human activity is the main cause of the ongoing planetary warming.
The second segment, focusing on the probable impacts of climate change, leaked in October and is due for publication in Yokohama, Japan, in March; a major finding is expected to be that the food supply is at serious risk as warming continues.
The third segment, prepared by a committee made up largely of economists and policy analysts, many of them with some scientific training, focuses on policies that could limit the overall damages from climate change, and is to be published after an editing session in Berlin in April.

Want Better Hedge Fund Returns? Try One Led by a Woman




In the world of hedge funds, a relative few have a woman at the helm. And yet, these funds may be the standouts from the bunch, a new report argues.
In the years since the financial crisis, hedge funds managed by women performed better than a broader index that reflects the performance of the industry, according to a report released on Wednesday by the professional services firm Rothstein Kass. The report seeks to show that this “alpha” – superior returns, in Wall Street speak – is no mere fluke.
“There is meaningful alpha to be gained from investing in women-owned and -managed funds,” Meredith Jones, a director at Rothstein Kass who wrote the report, said in an interview. “There appear to be both behavioral and biological factors that impact women’s ability to manage money and make them consistent.”
From the beginning of 2007 through June 2013 – a period that includes the dark days of the crisis – a Rothstein Kass index of women-run hedge funds returned 6 percent, the report says. By comparison, the HFRX Global Hedge Fund Index, released by Hedge Fund Research, fell 1.1 percent during that time, according to the report.
Last year through November, the index of women-run funds had a 9.8 percent return, compared with a 6.13 percent rise in the broader index, the research showed. (Still, both indexes fell short of the Standard & Poor’s 500-stock index, which rose about 27 percent during that time.)
The report, titled “Women in Alternative Investments: A Marathon, Not a Sprint,” used a group of 82 hedge funds managed or owned by women. Last year, the firm said that female hedge fund managers produced a return of 8.95 percent through the third quarter of 2012, compared with a 2.69 percent net return for the broader index.
While highlighting the accomplishments of women in hedge funds, private equity and venture capital, this year’s report also draws attention to persistent gender disparities on Wall Street.
The research, based on a survey in September and October of 440 senior women in the alternative investments business, suggests that the vast majority of the top jobs are held by men. Of the women surveyed, only 15.5 percent said their firm was owned or managed by a woman. Among hedge funds in particular, 21.4 percent were owned or managed by women.
About 42 percent of the respondents said their firm had no general partners who were women. And nearly 40 percent of the firms included in the survey had no women on their investment committees.
In that context, hedge funds run by women remain something of a niche. Some institutional investors, like public pension funds, have a specific mandate to invest a portion of their money in funds run by women or minorities.
Though these mandates can be motivated by political factors, Rothstein Kass is seeking to show that investing with women managers can be a wise choice for purely financial reasons. A handful of studies have suggested that women traders behave differently than their male counterparts, acting less impulsively.
John Coates, a former trader who is now a research fellow in neuroscience at the University of Cambridge, argued in a 2012 book, “The Hour Between Dog and Wolf,” that testosterone contributed to market swings. Hiring more women on trading floors, he wrote, might have a stabilizing effect.
But these ideas are far from mainstream, and the industry has been slow to change. A fourth of investors surveyed by Rothstein Kass said they expected their allocations to women-run funds to increase “somewhat” in 2014, while 2 percent expected to allocate “significantly” more money.
Though the study expected more women to start their own funds in the coming years, the scarcity of such funds is itself an obstacle, a “chicken or the egg” problem, said Kelly Easterling, an audit principal at Rothstein Kass who contributed to the report.
“Without a large supply of funds, it’s difficult to achieve appropriate portfolio diversification or, for that matter, put enough money to work to move the performance dial,” she said in a statement quoted in the report. “On the other hand, until there is more money flowing to women-owned and -managed funds, it’s unlikely that there will be a stampede of new fund launches.”
( Source : nytimes.com)

January 2014 Business Outlook Survey

Manufacturing growth in the region continued in January, according to firms responding to this month’s Business Outlook Survey. The survey’s broadest indicators for general activity, new orders, shipments, and employment were positive, signifying continued moderate growth. The survey's indicators of future activity moderated but continue to suggest general optimism about growth over the next six months.

Indicators Suggest Continued Moderate Growth

The survey’s broadest measure of manufacturing conditions, the diffusion index of current activity, increased from a revised reading of 6.4 in December to 9.4 this month (see Chart).* The index has now been positive for eight consecutive months.
The current shipments and new orders indexes remained positive but moved in opposite directions compared with December. The demand for manufactured goods, as measured by the current new orders index, decreased from a revised reading of 12.9 to 5.1 this month. Shipments continued to expand, and its index edged slightly higher to a reading of 12.1.
Labor market indicators showed some improvement this month. The current employment index increased 6 points from its revised reading in December. Twenty-three percent of the firms reported increases in employment in January, which is slightly higher than the 18 percent that reported increased employment last month. Firms reported reduced work hours, with the average workweek index falling from 4.8 to -5.3.
Cost pressures were slightly more widespread this month among reporting firms: The prices paid index increased 2 points, to 18.7. But with respect to firms’ own manufactured goods, price increases were less widespread this month: The prices received index decreased 6 points, to 5.1.

Six-Month Indicators Moderate

The survey’s future indicators have recently shown moderating optimism about growth in manufacturing. This month, the future general activity index fell 10 points, from a revised reading of 44.8 in December to 34.4 this month (see Chart). Still, nearly 48 percent of the firms expect increases in activity over the next six months; 13 percent of the firms indicated that they expect decreases. The indexes for future new orders and shipments also remained at relatively high levels but fell 7 points and 9 points, respectively. The future employment index was virtually unchanged at 17.5, with nearly 25 percent of the firms expecting to increase employment over the next six months.
In this month’s special questions, firms were asked about the factors that are influencing their hiring plans over a longer horizon of 12 months (see Special Questions). The percentage of firms that indicated they expect employment growth over the next year (41 percent) exceeded the percentage expecting decreased employment growth (10 percent) by a significant margin. Nearly all firms responded to a question about the factors that were restraining hiring. The most frequently cited factors restraining hiring were the need to keep operating costs low and low expectations for sales growth. Expected slow sales growth was the most frequently cited “most important” factor restraining hiring. Difficulty finding workers with appropriate skills and uncertainty about the cost of health-care insurance also ranked high.

Summary

The January Business Outlook Survey suggests that activity in the region’s manufacturing sector increased moderately this month. Firms reported increases in overall activity, new orders, and employment in January. Price increases for firms’ own manufactured goods were less widespread this month. The survey’s future activity indexes suggest that firms expect growth over the first half of 2014.

Special Questions (January 2014)

1. Do you expect your firm to increase employment, leave unchanged, or decrease employment over the next 12 months?
Increase
41.1%
Unchanged
45.2%
Decrease
9.6%
NR
4.1%
Total
100.0%
2. What are the most important factors, if any, restraining your hiring plans?
Special Questions
 ( Source : www.phil.frb.org )

For only $3 trillion, you can have a policy that’s “at least somewhat effective”

Bernanke says that studies show QE is at least somewhat effective. He also implicitly acknowledged that some members of the FOMC don’t feel QE is effective when he said that a he doesn’t feel that a ‘large amount’ of people on the FOMC feel QE is not effective.

( Source : www.forexlive.com )

The Fed has no idea what’s happening with inflation

Fed officials didn’t forecast low inflation and when Chicago Fed President Charles Evans said disinflation has been “puzzling” he wasn’t alone.
In October, CPI fell to just +1.0% y/y, the lowest since 2009. It ticked up to 1.2% the following month and is expected at 1.5% for the December data at the bottom of the hour. If anything can completely derail Fed expectations in 2014, it’s falling prices.
( Source : www.forexlive.com )

Credit Suisse says the BOJ will have to ease further to keep upward momentum on CPI

  • CS say in a recent report there is a strong correlation between rising import prices – the driver of CPI gains – and the weakening yen.
  • They allude to the fact that if the yen weakening stalls, so will the gain in the CPI.
  • Say unless there is a major upshift in wages or the unit labor cost, headline CPI inflation is likely to start dropping  by the middle of 2014
  • Says the BOJ will not wit until there is a drop in demand to ease further
  • Says further easing could come as early as the February 17-18 or March 10-11 meetings
( Source : www.forexlive.com )

Homebuilders Remained Confident in January on Rising U.S. Sales



Confidence among U.S. homebuilders held in January near its highest level in eight years, indicating the residential real-estate market will continue to contribute to economic growth in 2014.
While the National Association of Home Builders/Wells Fargo builder sentiment gauge fell to 56 from 57 in December, readings greater than 50 mean more respondents report good market conditions, figures from the Washington-based group showed today. The median forecast in a Bloomberg survey called for 58.
Home construction has been a source of strength for the economic expansion, propelled by job gains and rising property values. The market has weathered an increase in interest rates and prices are forecast to continue rising this year.
(Source : www.bloomberg.com )

U.S. Said to Expand Limits on Racial Profiling in Probes


Justice Department will soon extend its ban on the use of racial profiling during federal investigations, according to a law enforcement official briefed on the matter.
The Justice Department under Attorney General Eric Holder has been reviewing the guidelines for federal investigations for several years, according to the official, and is planning to expand the definition to prohibit profiling based on religion, national origin, sexual orientation and gender.
Holder, who during his tenure has spoken against racial profiling, has been under pressure from civil rights and civil liberties groups, including the American Civil Liberties Union, to expand a ban put in place by President George W. Bush in 2003.
“Every year, thousands of people are stopped while driving, flying, or even walking simply because of their actual or perceived race, ethnicity, national origin, immigration or citizenship status, or religion,” Anthony Romero, the executive director of the ACLU, said in testimony for a 2012 Senate hearing on racial profiling.
The Bush administration issued guidelines barring federal agents from using race or ethnicity in their investigations across federal law enforcement agencies. Those guidelines provided leeway to agents involved in national security operations, allowing them to use the race or ethnicity in investigations designed to identify potential terrorist threats.

Profiling Permitted

Illinois Senator Richard Durbin, the chamber’s second-ranked Democrat, held a hearing on the issue in 2012 and has pressed Holder to expand the ban on profiling. While he called the Bush administration guidelines an “important step forward,” he said the ban “does not apply to profiling based on religion and national origin.”
“In essence, these exceptions are a license to profile American Muslims and Hispanic Americans,” Durbin said at the hearing.
While the scope of the changes that will be proposed by Holder wasn’t immediately available and the timing of any announcement unclear, the possible changes were discussed in a meeting yesterday between Holder and New York City Mayor Bill De Blasio at City Hall, the official said.
The New York Times first reported the planned changes to ban.
 (Source : www.bloomberg.com )

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