Gold Investors Sit on Sidelines Through Easter Weekend
Gold on Tuesday posted its worst loss in 2014 and has led analysts to suggest investors stay on the sidelines until Easter passes. ETF Securities U.S. research director Mike McGlone tells TheStreet's Joe Deaux that waiting until next week to jump back into the gold market and the other precious metals is a good idea. Concerning the World Gold Council's report that Chinese gold demand will consolidate in 2014 but grow in the long term, McGlone says investors could have figured this out.
Gold futures were tumbling by double-digit prices as investors begin to price in the Crimean crisis and the Fed to keep up the pace of its tapering. ETF Securities U.S. research director Mike McGlone tells TheStreet's Joe Deaux that gold likely will trade in a tight range now that the market is finding some stability in the Crimea situation and as the Fed's Janet Yellen continues where her predecessor left off. McGlone says the only surprise would be if the Fed tapers more aggressively.
Gold traders remain on the sidelines as the market awaits word from the Federal Reserve as to what the central bank's latest policy statement will say. ETF Securities U.S. research director Mike McGlone tells TheStreet's Joe Deaux that despite most market participants having a good idea what the bank will say, it's not enough to trigger more activity as few catalysts are in the market to push prices in one direction.
Gold prices surge by $15 an ounce, despite a report that showed the U.S. economy added 192,000 jobs in March. ETF Securities U.S. research director Mike McGlone tells TheStreet's Joe Deaux that it would be misleading to think that gold's move is a reaction to the jobs report. Instead, McGlone thinks the price jumped because the yellow metal has been oversold. And since the jobs report didn't print far better than expected, McGlone says investors had reason to buy.
The Commerce Department on Wednesday reported that first quarter GDP contracted by 2.9%, the worst year-over-year quarterly reading since first quarter 2009. Gold prices, which already had been falling, regained some of those losses on the news. ETF Securities U.S. research director Mike McGlone tells TheStreet's Joe Deaux that a bad economic quarter does lend some support to gold, but says he remains more bullish on silver as industrial production picks up worldwide.
Gold prices fall on Wednesday for the second consecutive session following two positive days to start 2014. ETF Securities U.S. Research Director Mike McGlone tells TheStreet's Joe Deaux that investors should wait a few more days to grab a sense of which direction the gold market is headed in the near future.
Gold prices are rising for the first session since last week as the U.S. dollar weakens. ETF Securities U.S. research director Mike McGlone tells TheStreet's Joe Deaux that gold is marking its time at the moment. McGlone suggests investors should keep an eye on silver, which he thinks could bounce soon. Concerning platinum and palladium, McGlone says those white precious metals are suffering from strike talks in South Africa. Short term platinum and palladium should brace for further declines.
The gold forward offered rate and futures prices are in backwardation for the first time since 2001, ETF Securities U.S. Research Director Mike McGlone tells TheStreet's Joe Deaux. McGlone says he thinks this is a sign for more support under gold prices. McGlone also says the recent struggle in emerging markets has pushed gold higher on its appeal as a 'quasi-currency.' Gold prices rose double-digits on Wednesday after a January private payrolls report printed weaker than expected.
Gold prices pop Wednesday as Russian troops build near Ukraine's eastern boarder. ETF Securities U.S. research director Mike McGlone tells TheStreet's Joe Deaux the Ukraine crisis provides gold luster as a safe haven investment, but also says Chinese economic slowdown concerns add to the price gains. McGlone says if the Ukraine crisis calms down, there is a reasonable chance that gold falls to test the $1,300 an ounce price level. Gold on Wednesday rose as much as $22.
Gold prices are slightly lower ahead of the release of the Fed's latest policy-making minutes. Despite this intraday dip and the Fed's pullback in economic stimulus, the yellow metal is up about 10 percent for 2014. When asked what central bank action it would take to sink gold prices, ETF Securities U.S. research director Mike McGlone tells TheStreet's Joe Deaux that significant tightening would be necessary.
Gold demand tumbles 15 percent in 2013 due to ETF selling and a slow in central bank purchasing, the World Gold Council reports. When asked why central banks wouldn't buy more gold after the price dropped 28 percent during the year, World Gold Council managing director of investment Will Rhind tells TheStreet's Joe Deaux central banks don't time markets, they purchase based on what's good for monetary policy.