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India: Propitious Times for Gold Ahead

We are soon entering a propitious period for gold in the annual calendar.  Historically, prices have moved higher as gold traders and buyers returned from their summer holidays. In reality it has been the approaching Indian holiday, wedding, and agricultural harvest seasons that have boosted gold demand and supported higher prices in world markets as summer draws to a close.With discouraging import duties and other anti-gold trade barriers still in place, it remains to be seen this year whether or not India will provide its usual seasonal boost to gold demand and prices in the world market ...

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Follow Us on Twitter @NicholsOnGold.com

Follow our occasional tweets for our quick takes on recent gold-market news and developments . . . and subscribe to NicholsOnGold.com for our on-going analysis of the gold-market situation and outlook. ...

GOLD Explained: A Brief Note on Recent Market Action

Gold's failure to sustain its recent price gains, gains achieved over the past few weeks, triggered a wave of computer-generated technical selling on Monday morning that, in minutes, knocked gold prices back down to psychologically important technical support levels just above $1300 an ounce. I do not subscribe to any of the various conspiracy theories to explain gold's latest tumble, even though the recent news and gold-market fundamentals suggest the yellow metal should be moving higher. (For more on this bullish view, see "Gold: Now is the Time," NicholsOnGold, July 2, 2014.) The ...

Gold: Now is the Time

I’m frequently asked, “Is now a good time to own gold?”  I’m no “gold bug” but I am super-bullish on gold’s long-term prospects.  I believe now is an excellent time to invest in gold . . . and I advocate investors hold five-to-ten percent (and for some, sometimes more) of their investment assets in physical gold. Importantly, gold’s inclusion in a typical investment portfolio provides a variety of benefits – portfolio appreciation, diversification, reduced portfolio volatility, risk reduction, inflation protection, and more.  And, one does not have to expect some economic or political ...

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India Spicing Up the Gold Market

Readers of NicholsOnGold know we have long been of the view that robust Indian gold consumption in the years ahead would be an important pillar supporting significantly higher prices in the world marketplace. But since mid-2013, the Indian government’s anti-gold policies have put this scenario on a temporary hold as buyers within India have been reluctant to incur the high cost of the government’s punitive anti-gold policies. ...

Back from Vacation: The More Things Change . . .

I’m just back from a two-week vacation from the gold market.  In the interim much has changed – especially the metal’s price, which has fallen some $65 to $75 an ounce.  That’s more than five percent – but no reason to despair! While the price has weakened, the metal’s fundamentals, fundamentals we have discussed in past reports, have continued to improve, so much so that some bounce-back now seems likely – with bigger gains due later this year. ...

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Gold: On the Verge . . . or Nearing a Cliff

Gold has had difficulty sustaining recent rallies and remains trapped in a $50 trading range.  At the lower end, incremental physical demand has so far kept the price above its recent floor around $1175 an ounce . . . but selling by funds and other institutional traders of gold ETFs and “paper” proxies has limited attempts to rally. Whatever improvement in sentiment and upward momentum that may have resulted from this year’s encouraging first-quarter start has now dissipated.  The longer gold lingers in its current range the more difficult it will be for the yellow metal to break out on the ...

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Gold Insights on Recent Price Action

The past few weeks have been trying times for gold investors.  In mid-March, just when it looked like gold prices were set to break out into higher territory, the market shifted into reverse, leaving many investors and analysts wondering what was going on. To put some numbers on it, at its recent low point, gold was off some eight percent from its mid-March six-month high – and is continues bouncing around within the technically significant $1265 to $1305 range.  A breakout in either direction could set the market’s tone for the weeks ahead. That said, we’ve never put much faith in ...

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Dark Pools, Program Trading and the Price of Gold

(This report first published and posted on May 15, 2013 — but is even more timely today!)   Day after day, gold trading has been, and continues to be, dominated by institutional trading in the “dark pools” where over-the-counter dealer and interbank activity goes largely unseen. Don’t under-estimate the influence of trading in the dark pools where “invisible” institutional trading can – in a flash – knock gold to the mat, leaving most gold-market participants and observers wondering what happened. Indeed, much of this activity in the interbank and dealer market goes unreported – but ...

Gold-Price Weakness: More March Madness?

Frankly, I’ve been surprised by the recent decline in the price of gold.  I expected a stronger finish to the first quarter with gold prices somewhat higher – possibly even breaking out above the $1,400 an ounce level by the end of March. Instead, gold prices have softened considerably over the past couple of weeks – off nearly $100 an ounce from its mid-March highs and down three percent in just the past week.  On a more positive note, gold is still up 7.5 percent for the year to date. With gold now hovering around the 200-day moving average and short-term momentum now moving into ...

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