Looming Financial Crisis? UPDATE - Where's your Gold now? 07.14.2014

FRIDAY:

July 11, 2014, 5:30 a.m. EDT
Gold stock rally ‘foreshadows a trend’ for the metal
Commentary: Mining stocks point to gains for gold prices
By Myra P. Saefong, MarketWatch 



SAN FRANCISCO (MarketWatch)—The outperformance of gold-mining stocks over gold this year points to some price gains ahead for the metal, but don’t expect a big rally.

A little over halfway into the year, mining stocks have recouped roughly half of what they lost in 2013 and scored about double the percentage gains seen in gold prices.

Gold-mining stocks “generally lead gold, both in the direction of the moves and in the extent of those moves,” said Brien Lundin, editor of Gold Newsletter.

The NYSE Arca Gold Bugs Index XX:HUI -2.68%   has climbed about 22% year to date, after losing 56% last year, while the Philadelphia Gold and Silver Index XAU -2.98%   has gained 21% this year following a loss of 49% in 2013.

The performances for the indexes strongly outdo the 11% year-to-date climb for gold futures prices GCQ4 -2.21%  , which lost 28% last year.

“The gold stocks typically begin rising or falling in advance of the metal, thereby foreshadowing the trend,” Lundin said, adding that “they move further on a percentage basis than the underlying metal, thereby offering leverage.”
So “the fact that the gold stocks are outperforming gold so far this year is a very bullish indicator for gold itself,” he said.

more here:
http://www.marketwatch.com/story/gold-miner-rally-foreshadows-a-trend-for-the-metal-2014-07-11

MONDAY:

July 14, 2014, 3:09 p.m. EDT
Gold plunges 2.3% in biggest daily drop of 2014
Barclays: There has been no long-term shift in bearish sentiment

By William L. Watts and Barbara Kollmeyer, MarketWatch
NEW YORK (MarketWatch) — Gold futures saw their biggest daily drop of 2014 Monday as solid gains for stocks and lackluster physical demand for the precious metal prompted investors to book profits on recent gains.

August gold futures GCQ4 -2.23%   plunged $30.70, or 2.3%, to $1,306.70 an ounce, marking the biggest one-day drop for a nearby futures contract since December. September silver SIU4 -2.36%   fell more than 54.7 cents, or 2.6%, to $20.91 an ounce.

“Overall, we believe that physical demand has remained short of expectations, the latest price increase having been driven largely by speculation,” wrote Eugen Weinberg, commodity strategist at Commerzbank in Frankfurt, in a note.

Pointing to India, Weinberg said the country’s decision to maintain a 10% import duty on gold and silver “is also likely to have a dampening effect on future gold demand expectations. In conjunction with a rather below-average monsoon season, this points to below-average gold demand from India.”

Gold prices ended last week on a down note, but still managed to register their sixth straight weekly gain. Gold had probed four-month lows near $1,244.30 an ounce in early June, rallying to more than $1,337 last week.

On the economic front, Federal Reserve Chairwoman Janet Yellen’s testimony will be pored over on Tuesday. Also of note, bank and tech earnings will color equity trading throughout the week.



Analysts at Barclays were also cautious on gold. In a note to clients, analyst Christopher Louney said recent gains across the metals complex look toppy.

“We caution against interpreting recent strength in investor flows as a long-term shift in sentiment, as gold still represents a healthy selling opportunity, in our view,” said Louney. For 2014, Barclays expects gold to average $1,260 an ounce, and drop to $1,200 by the third quarter.

Elsewhere in metals trading, October platinum PLV4 -0.34%   gave up $19.20, or 1.2%, to $1,494.30 an ounce, while September palladium PAU4 +0.37%   fell $4.20, or 0.5%, to $871.10 an ounce. High-grade copper for September delivery HGU4 -0.51%   fell around 2 cents at $3.25 a pound.

here:
http://www.marketwatch.com/story/gold-slips-but-trend-still-points-higher-2014-07-14

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Looming Financial Crisis? - 06.24.2014
http://globalistnews.blogspot.com/2014/06/looming-financial-crisis-06242014.html

gold, predictions, and the real agenda - 2013 - 12.31.2013
http://globalistnews.blogspot.com/2014/03/gold-predictions-and-real-agenda-2013.html