tag:blogger.com,1999:blog-27504100411130097882023-06-20T05:21:25.657-07:00FBM KLCIFBM KLCI | Malaysia Share Market | Make Money With Share Market | Bursa Malaysia | KLSE | Warrant | Share Market | Make Profit In Share MarketUnknownnoreply@blogger.comBlogger3125tag:blogger.com,1999:blog-2750410041113009788.post-71568740131358284482012-03-16T17:12:00.000-07:002012-03-16T17:12:56.109-07:00Gold Price Consolidates, QE3 Coming by June?<div class="separator" style="clear: both; text-align: center;"><a href="http://1.bp.blogspot.com/-XqJS3Hf2iJc/T2PW-hggjgI/AAAAAAAAF9I/phLPnIV4cxA/s1600/3626201670.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="205" src="http://1.bp.blogspot.com/-XqJS3Hf2iJc/T2PW-hggjgI/AAAAAAAAF9I/phLPnIV4cxA/s320/3626201670.jpg" width="320" /></a></div> The Goldman economist went on to raise the issue that “The economic indicators are improving, financial conditions remain accommodative, and inflation is at or above the Fed’s target. So why should they ease further?” He responded by noting that “The improvement might not last; Even if the improvement does last, faster growth would be desirable to push down the unemployment rate more quickly; and not easing might be equivalent to tightening” due to his contention that the “bond market currently discounts some probability of QE3.”<br />
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Hatzius subsequently addressed another point of contention by asking “Wouldn’t QE3 be inconsistent with the Fed’s observed reaction function over the past few years?” While he acknowledged that “at some level” it would be inconsistent, the Goldman Sachs economist noted that the FOMC currently contains even more dovish members than in past years. Additionally, Hatzius noted that “At the January 25 FOMC press conference, Chairman Bernanke seemed to indicate a materially lower threshold for additional easing when he said that he saw a ‘very strong case’ for more easing if the economy evolved in line with the SEP projections–which projected neither a large inflation undershoot nor a growth slowdown.”<br />
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In sum, if Hatzius’ forecast proves correct, the gold price is likely to receive a considerable tailwind in the form of further money printing by the Fed. Furthermore, judging by the prior two rounds of QE, the recent weakness in the price of gold is likely to be viewed as another correction before the yellow metal’s bull market resumes.Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-2750410041113009788.post-46267324474265804672012-02-21T15:52:00.000-08:002012-02-21T15:52:06.974-08:00Gold is likely to reach a new all-time record nominal high of $2,000 per ounce by April<div class="separator" style="clear: both; text-align: center;"><a href="http://1.bp.blogspot.com/-wCFsmm6z0T4/T0QuG9u4nGI/AAAAAAAAF4A/RE4VDiJlgMo/s1600/bosstrading3.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="240" src="http://1.bp.blogspot.com/-wCFsmm6z0T4/T0QuG9u4nGI/AAAAAAAAF4A/RE4VDiJlgMo/s320/bosstrading3.jpg" width="320" /></a></div>The price of gold is likely to reach a new all-time record nominal high of $2,000 per ounce by April of this year, according to Huntington Asset Advisors’ Peter Sorrentino. In a recent Bloomberg interview, Sorrentino – a senior fund manager at Huntington – discussed his bullish short-term outlook for the yellow metal.<br />
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“Gold had a very substantial run early last year and has gone through a corrective phase,” he noted. ”Some of this we think is attributable to the MF Global debacle. We think that frightened some commodity traders and some investors in commodities and that some institutional money headed for the sidelines after that. But when we look at the amount of U.S. Treasury debt held by our major export partners, we’re beginning to see significant systematic reductions in their Treasury holdings. They’re I think uncomfortable with holding that much of their reserves in dollar-denominated assets.”<br />
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Sorrentino went on to say that “We’re continuing to see central bank buying of gold by China. Russia has effectively nationalized all production; all the mines have to sell to the central bank. Venezuela nationalized their mining industry. We’re seeing gold being bought again in India as well as Vietnam and other countries. So there’s a continual growing of demand.”Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-2750410041113009788.post-30315843944442936942012-01-03T16:15:00.000-08:002012-01-03T16:18:08.125-08:00Potential for a third round of quantitative easing (QE3) will continue to be a critical factor for the gold price heading into 2012<a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://4.bp.blogspot.com/-g9vIBnt3p-w/TwOaZwx3eqI/AAAAAAAAFnk/Q-LUS5GMprY/s1600/congress.jpg"><img style="float: left; margin: 0pt 10px 10px 0pt; cursor: pointer; width: 400px; height: 282px;" src="http://4.bp.blogspot.com/-g9vIBnt3p-w/TwOaZwx3eqI/AAAAAAAAFnk/Q-LUS5GMprY/s400/congress.jpg" alt="" id="BLOGGER_PHOTO_ID_5693564121307904674" border="0" /></a>Looking ahead to the first trading week of the new year, a slew of U.S. economic reports are likely to serve as catalysts for the gold price. Later this morning, the ISM Index – a key manufacturing gauge – and a report on Construction Spending will be released. The latest Fed minutes – from last month’s Federal Open Market Committee (FOMC) meeting – are due out this afternoon. The remainder of the week includes several data points on the labor market – with ADP employment and weekly jobless claims scheduled for Thursday, followed by the monthly non-farm payrolls data on Friday. <p>The Federal Reserve will undoubtedly be keeping a close eye on the economic data as it prepares for its next FOMC meeting on January 25-26. The potential for a third round of quantitative easing (QE3) will continue to be a critical factor for the gold price heading into 2012. Thus far, the Ben Bernanke-led Fed has stressed the importance of maintaining accommodative monetary policies for the foreseeable future, but has yet to launch a new money printing campaign.</p> <p>While the calendar is considerably quieter in Europe this week, German Chancellor Angela Merkel and French President Nicolas Sarkozy announced yesterday that they will meet in Berlin on January 9 to discuss next steps in combating the sovereign debt crisis. Euro zone officials are then scheduled to meet on January 30 at the next European Summit to draft a stricter set of measures for reigning in government spending.</p> <p>Commenting on the outlook for the gold price, VTB Capital analyst Andrey Kryuchenkov wrote in a recent note to clients that “Longer-term players and physical buyers are likely to return to the market in the first half (of 2012), while the latest price retreat could serve as a good encouragement for hesitant market participants…There is little alternative to gold in times of economic uncertainty, despite the recent rush for the dollar. Gold stands on its own in terms of safe haven buying and bullion allocations are only likely to gain with currency protectionism still at large.”</p>Unknownnoreply@blogger.com0