What Role (if any) will Having Elected an Incumbent Democrat Have on Short-Term Prices of Gold and Silver?

PMBG Announces Expected Outcomes Coming out of the Gates of last Week’s Election 

Several IRA account holders are putting gold into their IRAs as a part of retirement asset diversification, which can even out the value of their portfolio even during a weak period in the stock market. Precious Metal Brokerage Group International (PMBG) presents their insight into how the recent election may or may not affect those who invest in Gold IRAs.

With the presidential election decided, the market responded ahead of, during and after Election Day itself. Gold is expected to continue its rise in 2013, reaching up to the $2,000 mark (conservatively) – or likely higher (per most analyst’s projections). On Oct. 23, Deutsche Bank analysts called for gold to exceed $2,200 an ounce next year. This came in light of the stimulus measures by central banks. (http://beforeitsnews.com/gold-and-precious-metals/2012/11/gold-silver-and-the-us-election-2455194.html)

See Full Press Release Here: http://www.prweb.com/releases/2012/11/prweb10112673.htm

 

 

What role (if any) will electing an incumbent Democrat or a 1st-term Republican have on short-term prices of Gold and Silver?

PMBG announces expected outcomes coming out of the gates of next week’s election!

Several IRA account holders are putting gold into their IRAs as a part of fund diversification, which can even out the value of their portfolio even during a weak period in the stock market. Precious Metal Brokerage Group International (PMBG) presents their insight into how to invest in gold IRAs.

With the presidential election less than one week away, market watchers are estimating what kind of impact a Mitt Romney win would have on the markets, including gold prices. Gold is expected to continue its rise in 2013, reaching up to the $2,000 mark – or higher. On Oct. 23, Deutsche Bank analysts called for gold to exceed $2,200 an ounce next year. This came in light of the stimulus measures by central banks. (http://beforeitsnews.com/gold-and-precious-metals/2012/11/gold-silver-and-the-us-election-2455194.html)

Gold prices generally languish in a year leading up to a U.S. presidential election and silver prices tend to weaken as well. Bad economic news and geopolitical concerns spur investors to buy gold and silver. “For one thing, the incumbent tries to keep the public focused on any positive economic news, and that isn’t good for gold,” says Terry Hanlon, president of Dillon Gage Metals in Dallas, adding that “If the past is any guide, this may be a good time to invest in precious metal coins like U.S. gold and silver American Eagles or Canadian Maple Leafs, looking for them to rise in value after the November election.”

Reed Full Press Release Here: http://www.prweb.com/releases/2012/11/prweb10092674.htm

 

Gold Settles Below $1,680, US Jobs Data Short Circuit Rally

Gold slid 2 percent in heavy trade on Friday, breaking below $1,690 an ounce for the first time in about two months as an encouraging U.S. nonfarm payrolls report lowered expectations for economic stimulus provided by global central banks.

Bullion hit a two-month low on Friday and is down almost 2 percent this week for its fourth consecutive weekly decline. The metal has now erased all its gains after the U.S. Federal Reserve announced its latest bond-buybacks to boost the job market in September.

Gold’s pullback brought its price near major technical support near its 100- and 200-day moving averages, after payrolls data showed U.S. employers added 171,000 jobs in October, a hopeful sign for a lackluster economy that has been a drag on President Barack Obama’s re-election chances.

“Better-than-expected numbers reduced the risk demand for gold, and a drop below $1,700 an ounce triggered sell-stops and momentum selling,” said James Steel, metals analyst at HSBC. “There are also long liquidation ahead of elections triggered by the job number,” Steel said.

Spot gold plunged nearly $37, or more than two percent, to trade near $1678.

U.S. gold futures  for December delivery shed more than $40 to settle at $1,675.20, settting a new eight-week low. On charts, Friday’s sharp pullback sent prices below a key Fibonacci retracement support and near its 100-day moving average, a level it has held since mid-August.

“Gold has weakened markedly after slicing below [key support] last week which was support and has now become resistance,” said Adam Sarhan, CEO of Sarhan Capital. Silver, which tends to be more volatile than gold, tumbled 3.5 percent to $31.09 an ounce.

Easing Expectations Trimmed

In the longer term, a positive reading on jobs and Friday’s strong U.S. factory orders data could weigh on gold if it trims expectations for monetary easing.

The U.S. authorities have explicitly tied the extent of monetary stimulus measures – news of which sent gold above $1,795 an ounce in October – to the health of the jobs market.

However, while the data was good, analysts say it is far from a level that would yet stoke fears of an imminent reversal of the Fed’s commitment to easing.

Despite Friday’s broad sell-off, platinum and palladium were both heading for their first weekly gains after three weeks of straight falls. Platinum  dropped more than one percent to about $1,542 and palladium slid nearly two percent to around $599.

 

Source: Gold Settles Below $1,680, US Jobs Data Short Circuit Rally

Forex Flash: Buy dips on gold towards a $1775 target – Nomura

FXstreet.com (Barcelona) – Gold has been on a steep downward move in recent weeks, currently approaching the 1,700 handle after fast and furious rises following the QE3 announcement.

According to Nomura Strategists Saeed Amen and Geoffrey Kendrick, “the reduction in short-term spec positions suggests that the recent move lower in gold has been as a related to short-term investors.”

Mr Amen and Mr Kendrick add: “Longer term investors have not been sellers and largely remain bullish as suggests Gold ETF holdings, that remain close to record levels. From a longterm perspective, we remain bullish gold, given the continuation of the globally low rate environment and also because longer-term investors are still bullish.”

On a short-term perspective, Nomura is keen to start buying on dips, “looking towards a $1775 target, in particular, on a further liquidation of short-term specs” Strategists note. “Without a further reduction in short-term specs, there is a risk of a continuation of the short-term unwind” they conclude.

 

Source: Buy dips on gold towards a $1775 target

 

Can Gold Really Cross the $2,500 Mark by Q3 2013?

PMBG Announces Why the Upcoming “Tier 1-Cash Equivalent” Status change for Gold Makes It Very Possible

Gold has historically been classified as a Tier 3 asset since it was downgraded in the 1980s by a committee of banking supervisory authorities – Basel Committee of Bank Supervision (BCBS), established by the central bank governors of the Group of Ten countries in 1974. This same committee is looking to make gold the new “zero-risk” collateral. As the only non-Tier 1 asset to be universally regarded by investors the world over as a “flight-to-safety” asset, gold is unique, and when moved from a Tier 3 to Tier 1 asset it will have significant implications.

According to Business Insider, gold will officially become considered a “currency” again, at its new market-value, and no longer a mere commodity when the new rules become fully put into effect. The value of gold will likely soar because everyone will recognize that gold has been undervalued as a mere “commodity.” “This information has not yet been factored into gold prices,” says Eric Zuesse, the author of the article.

The Basel Committee for Bank Supervision (BCBS), a global banking regulatory group that meets in the small mountain town of Basel, Switzerland, every few years is a group of bankers who are responsible for setting global banking standards. They decide things like which assets qualify as Tier 1 or “zero-risk” assets, how much loan loss reserves banks need to hold, and how much leverage banks can take on. As the maker of global capital requirements and whose Basel III rules form the basis for global bank regulation is looking to make gold a bank capital Tier 1 asset. As a result of the global debt crisis in 2008, banks had more stringent Tier 1 collateral (or assets) to loans requirements implemented. The new rules require 7% Tier 1 collateral of loans be held versus 2% prior to the debt crisis.

Read Full Press Release Here: http://www.prweb.com/releases/2012/10/prweb10029252.htm