Nobel laureate Myron Scholes says his models show the smart money is pessimistic

“Right now for the smart money, the way ahead is pessimistic,” Scholes, chief investment strategist at Janus Henderson Investors, said at the annual Sohn San Francisco Investment Conference. Nobel laureate Myron Scholes said the options market indicates the smart money is getting nervous. He found that the market is increasingly buying protection against inflation, buying things such as gold and Treasury inflation-protected Securities. The market tends to be worried about inflation,” Scholes sai


“Right now for the smart money, the way ahead is pessimistic,” Scholes, chief investment strategist at Janus Henderson Investors, said at the annual Sohn San Francisco Investment Conference.
Nobel laureate Myron Scholes said the options market indicates the smart money is getting nervous.
He found that the market is increasingly buying protection against inflation, buying things such as gold and Treasury inflation-protected Securities.
The market tends to be worried about inflation,” Scholes sai
Nobel laureate Myron Scholes says his models show the smart money is pessimistic Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-10-17  Authors: yun li
Keywords: news, cnbc, companies, myron, money, models, laureate, downside, upside, pessimistic, investment, inflation, nobel, market, smart, sohn, scholes, gold


Nobel laureate Myron Scholes says his models show the smart money is pessimistic

The ratio of the expected upside over the expected downside is at the bottom right now, making equities unattractive, according to Scholes, who uses call and put option prices to get insights into shifting near-term market risks.

“Right now for the smart money, the way ahead is pessimistic,” Scholes, chief investment strategist at Janus Henderson Investors, said at the annual Sohn San Francisco Investment Conference.

Nobel laureate Myron Scholes said the options market indicates the smart money is getting nervous.

“If you believe that market prices are giving us information about the road ahead … Basically the market is saying the downside risk for the S&P 500 is about 11% and upside is only around 10% so the distribution is skewed to the downside,” Scholes said. “The same thing is true if you look at all the sectors of the S&P 500 except the material sector.”

Scholes won a Nobel Prize in economics in 1997 with Robert Merton for research in the pricing of options and derivatives that formed the basis for the widely used Black-Scholes pricing model.

He found that the market is increasingly buying protection against inflation, buying things such as gold and Treasury inflation-protected Securities.

“What we see is very fascinating: the market is indicating some whiff of inflation. The market tends to be worried about inflation,” Scholes said. “Basically it looks like bonds and gold are strong, equities are weak.”

Scholes is bullish on inflation assets such as natural gas, oil, gold, silver and agricultural commodities which have more upside than downside potential, he said.

In 1994, Scholes joined with John Meriwether to found hedge fund Long Term Capital Management, but the firm famously collapsed in 1998 after the Russian debt crisis.

The Sohn conference held in San Francisco is the West Coast version of the investment conferences that began in New York. The conferences, presented in partnership with CNBC, benefit education and other children’s causes.


Company: cnbc, Activity: cnbc, Date: 2019-10-17  Authors: yun li
Keywords: news, cnbc, companies, myron, money, models, laureate, downside, upside, pessimistic, investment, inflation, nobel, market, smart, sohn, scholes, gold


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

The UK just unveiled a $23,000 payment card made from solid gold

Britain’s Royal Mint has produced a solid gold payment card — and you’ll need to fork out £18,750 ($23,460) to buy one. The government-owned company, responsible for minting coins for the U.K., said it partnered up with Mastercard and payments technology firm Accomplish Financial to make the card. Made from 18-karat gold, Royal Mint’s card goes a step further. Looking ahead, the Royal Mint is looking to launch its first product listed on a stock exchange, a gold-backed exchange-traded commodity


Britain’s Royal Mint has produced a solid gold payment card — and you’ll need to fork out £18,750 ($23,460) to buy one. The government-owned company, responsible for minting coins for the U.K., said it partnered up with Mastercard and payments technology firm Accomplish Financial to make the card. Made from 18-karat gold, Royal Mint’s card goes a step further. Looking ahead, the Royal Mint is looking to launch its first product listed on a stock exchange, a gold-backed exchange-traded commodity
The UK just unveiled a $23,000 payment card made from solid gold Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-10-11  Authors: ryan browne
Keywords: news, cnbc, companies, royal, mastercard, raris, 23000, luxury, card, payment, unveiled, mint, solid, gold, cards


The UK just unveiled a $23,000 payment card made from solid gold

Britain’s Royal Mint has produced a solid gold payment card — and you’ll need to fork out £18,750 ($23,460) to buy one.

The government-owned company, responsible for minting coins for the U.K., said it partnered up with Mastercard and payments technology firm Accomplish Financial to make the card.

Buyers of the luxury product will get access to a premium account called Raris, which offers zero foreign exchange and transaction fees and additional Mastercard benefits including a dedicated concierge services.

A handful of tech companies have been rolling out premium metal cards to their customers of late. Fintech start-ups N26 and Revolut for instance both sell debit cards made out of stainless steel, while Apple earlier this year launched a titanium credit card.

Made from 18-karat gold, Royal Mint’s card goes a step further. It’s targeted at people “who value high quality luxury items that make a statement,” according to the firm.

Looking ahead, the Royal Mint is looking to launch its first product listed on a stock exchange, a gold-backed exchange-traded commodity (ETC), by early 2020. The ETC would be listed on the U.K., Italian and German stock markets.

“The Royal Mint is constantly innovating, and as the UK’s leading precious metals solutions provider, we are hugely excited to launch the solid gold Raris card in acknowledgement of growing consumer demands for unique and luxury payments cards,” Anne Jessopp, CEO of the Royal Mint, said in a statement Friday.

“In association with Mastercard and Accomplish Financial, Raris – the first payment card manufactured by The Royal Mint – is a combination over a 1,100 years of Royal Mint craftsmanship with tomorrow’s payment technology.”


Company: cnbc, Activity: cnbc, Date: 2019-10-11  Authors: ryan browne
Keywords: news, cnbc, companies, royal, mastercard, raris, 23000, luxury, card, payment, unveiled, mint, solid, gold, cards


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Mark Cuban says he’d rather ‘have bananas than bitcoin’ because they’re more useful

“Shark Tank” investor Mark Cuban has never been one to hide his opinions, especially when it comes to cryptocurrency. The billionaire said he would “rather have bananas than bitcoin,” in a YouTube question-and-answer session with Wired posted Sept. 27. “I could eat bananas — bitcoin, not so much,” Cuban said. In response to being asked why he “hates crypto,” Cuban compared bitcoin to baseball cards, comic books and artwork, none of which have “intrinsic value,” he said. To explain, he also compa


“Shark Tank” investor Mark Cuban has never been one to hide his opinions, especially when it comes to cryptocurrency. The billionaire said he would “rather have bananas than bitcoin,” in a YouTube question-and-answer session with Wired posted Sept. 27. “I could eat bananas — bitcoin, not so much,” Cuban said. In response to being asked why he “hates crypto,” Cuban compared bitcoin to baseball cards, comic books and artwork, none of which have “intrinsic value,” he said. To explain, he also compa
Mark Cuban says he’d rather ‘have bananas than bitcoin’ because they’re more useful Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-10-04  Authors: taylor locke
Keywords: news, cnbc, companies, shark, useful, bitcoin, theyre, bananas, stability, venture, youve, cuban, crypto, think, gold, mark, told, hed


Mark Cuban says he'd rather 'have bananas than bitcoin' because they're more useful

“Shark Tank” investor Mark Cuban has never been one to hide his opinions, especially when it comes to cryptocurrency.

The billionaire said he would “rather have bananas than bitcoin,” in a YouTube question-and-answer session with Wired posted Sept. 27.

“I could eat bananas — bitcoin, not so much,” Cuban said.

In response to being asked why he “hates crypto,” Cuban compared bitcoin to baseball cards, comic books and artwork, none of which have “intrinsic value,” he said. And there is less you can do with bitcoin than a baseball card.

“Crypto is so complicated for 99% of the population,” he said. “Do you put it in a device? Do you print it out? How do you keep it from being hacked? Who is going to host it for you?”

Cuban said he wasn’t against crypto, but he thinks that people should be careful with it. To explain, he also compared it to gold: “Gold is a religion. People who are really into gold, they’ll tell you that there’s a bad depression and things go to hell in a handbasket, if you own gold then you’ll be okay — no, you won’t!”

Cuban has warned about the pitfalls of crypto before. In July, he criticized Facebook’s recent venture into cryptocurrency in an interview with CNBC.

“I’m not a big fan of what they’re doing there,” Cuban said of Facebook’s Libra coin. “I think it’s a big mistake.”

He explained the impact it could have on global markets, where there isn’t regulation or government stability.

“I think globally and in countries where there isn’t a lot of rule of law, or a lot of government stability, or currency stability, then it could be dangerous,” he said.

Despite his remarks, Cuban has invested in multiple businesses built on cryptocurrency and blockchain in the past, including a digital token e-sports betting platform and a venture capital fund for crypto. In October of 2017, he told Bloomberg that he has personally bought bitcoin.

“If you’re a true adventurer and you really want to throw the Hail Mary, you might take 10% [of your savings] and put it in bitcoin or ethereum,” Cuban told Vanity Fair. “But, if you do that, you’ve got to pretend you’ve already lost your money.”

Disclosure: CNBC owns the exclusive off-network cable rights to “Shark Tank.”

Like this story? Subscribe to CNBC Make It on YouTube!

Don’t miss:


Company: cnbc, Activity: cnbc, Date: 2019-10-04  Authors: taylor locke
Keywords: news, cnbc, companies, shark, useful, bitcoin, theyre, bananas, stability, venture, youve, cuban, crypto, think, gold, mark, told, hed


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

We asked a financial advisor to decode promising investing pitches so you can invest more safely

“The entire premise of making a financial or investment decision because you feel a certain way is, in itself, a warning sign,” said Boneparth. “The main lesson: Don’t invest in things I don’t understand,” he said. “Don’t invest your life savings in the hope that it will be Google or Facebook,” he said. “But this is predicated on something that does not fit good financial planning or smart investment decisions,” he said. “A $1 million portfolio allocating 5% to gold would mean $50,000 in gold,”


“The entire premise of making a financial or investment decision because you feel a certain way is, in itself, a warning sign,” said Boneparth. “The main lesson: Don’t invest in things I don’t understand,” he said. “Don’t invest your life savings in the hope that it will be Google or Facebook,” he said. “But this is predicated on something that does not fit good financial planning or smart investment decisions,” he said. “A $1 million portfolio allocating 5% to gold would mean $50,000 in gold,”
We asked a financial advisor to decode promising investing pitches so you can invest more safely Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-10-04  Authors: jill cornfield
Keywords: news, cnbc, companies, boneparth, advisor, invest, investment, company, promising, nelson, dont, marc, asked, decisions, financial, gold, safely, pitches, investing, decode


We asked a financial advisor to decode promising investing pitches so you can invest more safely

When something sounds too good to be true, it probably is. At odds with this old wisdom is a flood of investment information and recommendations to put your money where it supposedly will keep you safe and make you rich.

Mirko Vitali / EyeEm | Getty Images

The problem is, when you’re just starting out you may not recognize questionable information. “Anytime you receive any kind of marketing communication pitching an investment, proceed with caution,” said certified financial planner Douglas Boneparth, founder and president of Bone Fide Wealth in New York. Here are six things that should make you hit the pause button.

Your emotions

Recession warnings are starting to rumble again, so you’ve probably seen a worrisome headline or two. Feeling anxious, you start thinking about selling. “The entire premise of making a financial or investment decision because you feel a certain way is, in itself, a warning sign,” said Boneparth. “We typically don’t want to make our decisions based on our emotions.” Don’t make your investing decisions based on interest rates or headlines, says Boneparth. More from Invest in You:

Single-income families share their money secrets

Tips from people who didn’t save till their 40s or 50s

You’ll probably regret that timeshare, car payment “The very premise feels off key,” Boneparth said. If feelings are driving you to make an investing move, most financial planners would advise you to see how specific moves would impact your finances. “Anything has the potential to have you make a bad or uninformed financial decision,” Boneparth said, “which in turn is likely not going to help you achieve your goals.”

Your observations

You might observe something about a company that makes you think it would be a good investment. David Nelson, 29, noticed a lot of service outages from his internet and television provider. He read a recent financial report and did some research. It seemed like a great chance to invest in a turnaround: a struggling company with a viable plan to become more profitable. Nelson figured he would buy low, at $1.72 for common shares and $18 for preferred shares. He invested about $6,000. “The company purchased some Verizon accounts, and unfortunately the acquisition didn’t go as planned,” said Nelson, who lives in Florida’s Tampa Bay region. Service disruptions lost them a lot of customers, significantly affecting their share price. He originally planned to hold on for at least two years. “But I freaked out when I saw the stock was down 30% or 40%, and I took the loss,” Nelson said. Nelson’s advice: Do your research and be able to back up your position with facts. Don’t make decisions based on hope or emotion.

Things you don’t fully understand

Marc A., 40, learned a thing or two about investing when he made a quick decision in 2013. Marc, who asked that his last name not be used, had missed out on a year’s worth of 401(k) contributions after changing the structure of his York, Pennsylvania, internet marketing company. His advisor at the time told him that three-quarters of a $13,000 investment in an energy company would be tax-deductible. Natural gas mining would be a solid investment that would pay out. Six years later, Marc says the returns have been disappointing. “The main lesson: Don’t invest in things I don’t understand,” he said. “So far, in more than five, six years we’ve been paid back less than $2,000 of the $13,000 we invested.” He says he cannot sell the investment without going through the advisor, with whom he no longer works. “I’ve written it off as a loss mentally a long time ago,” Marc said. Marc now takes a DIY approach to his money and runs a personal finance blog. “One of the positives was just taking the initiative to educate myself better,” he said. “If a particular investment is too complicated to understand, it likely tells you all you need to know about getting involved with it,” Boneparth said.

IPOs

The odds of getting rich from an IPO are unlikely. First, Boneparth says, you have to take on a significant amount of risk. “Don’t invest your life savings in the hope that it will be Google or Facebook,” he said. “Most IPOs will not provide that same kind of performance.” “If you get an email or watch a commercial that millions of people are reading, do you think you’ve come across something so unique you’re going to capitalize on it?” Boneparth said.

Gold

The typical claim: “The world is crashing, and you’ll need a hard asset like gold to get yourself through the fallout.” The sellers of some investment products know that people feel frightened when interest rates fall or the stock market shows some volatility, Boneparth said. “But this is predicated on something that does not fit good financial planning or smart investment decisions,” he said. (See above: Your emotions) Several claims about gold — that it’s a safe haven or a hedge against inflation — have been debunked. “It has risks associated with it like any other asset,” Boneparth said. The amount of gold you might hold in your portfolio — recommendations say 3% to 5% — is so small as to make it almost meaningless. “A $1 million portfolio allocating 5% to gold would mean $50,000 in gold,” Boneparth said. “If you have $100,000 and allocate 3%, that’s $3,000.” Ask yourself if that would be a meaningful way to dampen volatility.

Bold claims and random recommendations


Company: cnbc, Activity: cnbc, Date: 2019-10-04  Authors: jill cornfield
Keywords: news, cnbc, companies, boneparth, advisor, invest, investment, company, promising, nelson, dont, marc, asked, decisions, financial, gold, safely, pitches, investing, decode


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Gold prices could soar to $2,000 next year, says strategist

A mark of 999.9 fine sits on hallmarked one kilogram gold bullion bars at the Valcambi SA precious metal refinery in Lugano, Switzerland. Gold prices could surge by about 30% to as high as $2,000 per ounce next year, according to David Roche, president and global strategist at Independent Strategy. As a result, gold prices will likely touch $1,600 before the end of this year, before moving higher to $2,000 next year, he said. The European Central Bank also cut its main deposit rate to a record l


A mark of 999.9 fine sits on hallmarked one kilogram gold bullion bars at the Valcambi SA precious metal refinery in Lugano, Switzerland. Gold prices could surge by about 30% to as high as $2,000 per ounce next year, according to David Roche, president and global strategist at Independent Strategy. As a result, gold prices will likely touch $1,600 before the end of this year, before moving higher to $2,000 next year, he said. The European Central Bank also cut its main deposit rate to a record l
Gold prices could soar to $2,000 next year, says strategist Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-10-03  Authors: eustance huang
Keywords: news, cnbc, companies, strategist, central, currency, japan, roche, negative, gold, rate, bank, target, 2000, soar, prices


Gold prices could soar to $2,000 next year, says strategist

A mark of 999.9 fine sits on hallmarked one kilogram gold bullion bars at the Valcambi SA precious metal refinery in Lugano, Switzerland.

Gold prices could surge by about 30% to as high as $2,000 per ounce next year, according to David Roche, president and global strategist at Independent Strategy.

The price of spot gold currently stands at around $1,500 per ounce.

“What my gut says is that cause of the vilification of fiat currencies by central bankers, which is set to get worse — not better, people will look for an alternative currency,” Roche told CNBC’s “Squawk Box” on Thursday.

“Gold is a good alternative currency because it’s safe, and because it costs nothing to own it compared to paying negative rates on deposits,” Roche said.

As a result, gold prices will likely touch $1,600 before the end of this year, before moving higher to $2,000 next year, he said.

Roche’s comments come amid policy moves at major central banks in the past month.

The U.S. Federal Reserve slashed its benchmark overnight lending rate to a target range of 1.75% to 2% in September. The European Central Bank also cut its main deposit rate to a record low of -0.5% and launched a large new bond-buying program in the same month.

In Japan, where the short-term interest rate target is already in negative territory, the Bank of Japan signaled a chance of easing in October.


Company: cnbc, Activity: cnbc, Date: 2019-10-03  Authors: eustance huang
Keywords: news, cnbc, companies, strategist, central, currency, japan, roche, negative, gold, rate, bank, target, 2000, soar, prices


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

‘A rewards credit card that earns cash back is like gold’ — use these 3 tips to make the most of it

Almost 6 in 10 people have one or more rewards credit card in their wallet, according to a 2018 CreditCards.com survey of 1,218 American adults. And it doesn’t cost anything more to use a credit card,” says Julian Mark Kheel, director and senior analyst at travel site The Points Guy. But you’ll need to be smart about how you use a cash-back card, just as you would with any rewards card. Use your cash rewards wiselyWith a cash-back card, your rewards can typically be redeemed for gift cards, or s


Almost 6 in 10 people have one or more rewards credit card in their wallet, according to a 2018 CreditCards.com survey of 1,218 American adults. And it doesn’t cost anything more to use a credit card,” says Julian Mark Kheel, director and senior analyst at travel site The Points Guy. But you’ll need to be smart about how you use a cash-back card, just as you would with any rewards card. Use your cash rewards wiselyWith a cash-back card, your rewards can typically be redeemed for gift cards, or s
‘A rewards credit card that earns cash back is like gold’ — use these 3 tips to make the most of it Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-10-02  Authors: mariam abdallah, ivana pino, aditi shrikant
Keywords: news, cnbc, companies, gold, smart, spending, earns, tips, credit, card, cash, cards, statement, say, rewards, cashback


'A rewards credit card that earns cash back is like gold' — use these 3 tips to make the most of it

Almost 6 in 10 people have one or more rewards credit card in their wallet, according to a 2018 CreditCards.com survey of 1,218 American adults. The most popular perk: cash back. The allure is that cash-back cards are easy to understand. There’s no points-crunching to figure out the value of rewards you’re earning. “People are realizing that paying for something with cash or a debit card doesn’t get them anything in return. And it doesn’t cost anything more to use a credit card,” says Julian Mark Kheel, director and senior analyst at travel site The Points Guy. But you’ll need to be smart about how you use a cash-back card, just as you would with any rewards card. Here’s how to make the most of one.

1. Find a card tailored to your spending habits

Most cash-back cards offer a base reward of 1%-2% back, but some cards offer bonuses as high as 6% back in particular categories. Experts say cash-back cards can be valuable when those bonuses reward your spending priorities and frequent purchases, such as groceries or restaurant meals. For example, if you do grocery shopping for a big family, consider a card that offers a bonus in that category, making the savings target “easy for families to hit,” Ted Rossman, an analyst at CreditCards.com, told Grow earlier this year.

2. Use your cash rewards wisely

With a cash-back card, your rewards can typically be redeemed for gift cards, or sent to you as a check or direct deposit into your checking account. But you may also be able to get a statement credit toward your credit card balance, which Kheel says can be a smart option. “That means instead of paying your monthly bill of say $200, if you apply $20 in cash back as a statement credit, you only need to pay $180 that month,” he explains.

3. Pay off your card in full each month


Company: cnbc, Activity: cnbc, Date: 2019-10-02  Authors: mariam abdallah, ivana pino, aditi shrikant
Keywords: news, cnbc, companies, gold, smart, spending, earns, tips, credit, card, cash, cards, statement, say, rewards, cashback


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Gold climbs 1%; weak US data feeds economic fears

An employee returns a box of one kilogram gold bars to the safe in Budapest, Hungary, on June 17, 2013. Gold prices rose more than 1% on Wednesday as a report showing weaker-than-expected hiring by U.S. private employers stoked economic fears the day after another report showed weak manufacturing activity in the world’s largest economy. The weak data bolstered expectations for another interest rate cut by the U.S. Federal Reserve. The Fed cut interest rates in September for the second time this


An employee returns a box of one kilogram gold bars to the safe in Budapest, Hungary, on June 17, 2013. Gold prices rose more than 1% on Wednesday as a report showing weaker-than-expected hiring by U.S. private employers stoked economic fears the day after another report showed weak manufacturing activity in the world’s largest economy. The weak data bolstered expectations for another interest rate cut by the U.S. Federal Reserve. The Fed cut interest rates in September for the second time this
Gold climbs 1%; weak US data feeds economic fears Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-10-02
Keywords: news, cnbc, companies, fed, economic, interest, report, gold, fears, dollar, data, rates, market, manufacturing, weak, feeds, showed, climbs


Gold climbs 1%; weak US data feeds economic fears

An employee returns a box of one kilogram gold bars to the safe in Budapest, Hungary, on June 17, 2013.

Gold prices rose more than 1% on Wednesday as a report showing weaker-than-expected hiring by U.S. private employers stoked economic fears the day after another report showed weak manufacturing activity in the world’s largest economy.

Spot gold was up 1.4% at $1,499.41 per ounce. Prices had hit a near two-month low of $1,458.50 on Tuesday, before climbing as much as 1% during the session. U.S. gold futures climbed 1.3% to settle at $1,507.90 an ounce.

“The main thing that is moving gold higher right now is yesterday’s manufacturing data that came out worse since 2009… and that has fed expectations of lower interest rates in the U.S. and is pushing gold higher,” said Bob Haberkorn, senior market strategist at RJO Futures.

“The fact that we have contraction in manufacturing shows the U.S. is not insulated from the rest of the world.”

The ADP National Employment report on Wednesday showed U.S. private employers hired fewer workers than expected in September, pointing to a labor market slowdown. A day earlier, the Institute for Supply Management (ISM) reported that U.S. manufacturing activity slumped to a more than 10-year low in September.

A major global share index hit its lowest level in a month on fears that fallout from the U.S.-China trade war is spreading to the U.S. economy and could further hurt global growth. The U.S. dollar steadied after being knocked off its highest levels in nearly two years after the manufacturing data.

The weak data bolstered expectations for another interest rate cut by the U.S. Federal Reserve. This would reduce the opportunity cost of holding non-yielding bullion and should also weigh on U.S. yields and the dollar, in which gold is priced.

Investors are awaiting the next Fed meeting later this month. The Fed cut interest rates in September for the second time this year.

On Tuesday, President Donald Trump said interest rates were “too high” and that a strong dollar was hurting U.S. manufacturers.

“Gold has a problem with the dollar index still being near 99 and gold seems to be weathering that storm,” said George Gero, managing director at RBC Wealth Management.

Citing the stock market, the ADP employment report and other factors including stop-loss selling, Gero said, “gold is probably going to be a little more stable.”


Company: cnbc, Activity: cnbc, Date: 2019-10-02
Keywords: news, cnbc, companies, fed, economic, interest, report, gold, fears, dollar, data, rates, market, manufacturing, weak, feeds, showed, climbs


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Gold bounces off two-month lows on weaker US data

An Argor-Heraeus SA stamp sits on a 250 gram gold bar in Budapest, Hungary, on March 10, 2016. Gold rose on Tuesday, reversing course from earlier in the session, when it touched a near two-month low, as the dollar pared gains after weak U.S. manufacturing data bolstered bets for another interest rate cut by the U.S. Federal Reserve. Spot gold rose 0.7% to $1,482.28 per ounce, having touched its lowest since Aug. 6 at $1,458.50. “This weaker data might support another Fed rate cut and as a resul


An Argor-Heraeus SA stamp sits on a 250 gram gold bar in Budapest, Hungary, on March 10, 2016. Gold rose on Tuesday, reversing course from earlier in the session, when it touched a near two-month low, as the dollar pared gains after weak U.S. manufacturing data bolstered bets for another interest rate cut by the U.S. Federal Reserve. Spot gold rose 0.7% to $1,482.28 per ounce, having touched its lowest since Aug. 6 at $1,458.50. “This weaker data might support another Fed rate cut and as a resul
Gold bounces off two-month lows on weaker US data Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-10-01
Keywords: news, cnbc, companies, weaker, interest, gold, yields, dollar, rate, session, data, remain, lows, cut, bounces, twomonth, fed


Gold bounces off two-month lows on weaker US data

An Argor-Heraeus SA stamp sits on a 250 gram gold bar in Budapest, Hungary, on March 10, 2016.

Gold rose on Tuesday, reversing course from earlier in the session, when it touched a near two-month low, as the dollar pared gains after weak U.S. manufacturing data bolstered bets for another interest rate cut by the U.S. Federal Reserve.

Spot gold rose 0.7% to $1,482.28 per ounce, having touched its lowest since Aug. 6 at $1,458.50. U.S. gold futures were up 1.1% at $1,488.30.

The U.S. manufacturing sector contracted in September to its weakest level in more than a decade as business conditions deteriorated further amid trade tensions with China.

“It shows there might be significant corrections in the economy and traders are going back into safety right now,” said Phillip Streible, senior commodities strategist at RJO Futures.

“This weaker data might support another Fed rate cut and as a result, metals might get a bonus move higher,” he said.

U.S. equities turned red and the dollar pared gains to retreat from a multi-year peak following the data. U.S. Treasury yields meanwhile, fell to session lows.

Lower interest rates reduce the opportunity cost of holding non-yielding bullion and also weigh on U.S. yields and the dollar, in which gold is priced.

However, bullion has lost nearly $100 since scaling a peak of $1,557 early September, largely due to the dollar’s strength.

Investors had been largely pricing in no further rate cuts going into a Fed meeting later in the month on stronger economic data and reduced fears of a global recession. The Fed last cut interest rates in September for the second time this year.

While gold had been testing support below $1,500 due to repricing of Fed rate cut expectations, “we think that risks remain skewed to the upside between now and year end,” UBS analysts said in a note.

Palladium fell 0.5% to $1,666.19 an ounce. On Monday, the auto catalyst metal hit an all-time high of $1,700.71 on supply concerns.

“Fundamentals remain tight and we remain bullish long term, but there should be some opportunities to enter at better levels amid downside risks to economic data and lingering trade uncertainty,” UBS analysts said.

Silver gained 1.5% to $17.25 after touching its lowest since Aug. 20 at $16.85, while platinum was down 0.1% to $880.83, having lost over 5% in the last session.


Company: cnbc, Activity: cnbc, Date: 2019-10-01
Keywords: news, cnbc, companies, weaker, interest, gold, yields, dollar, rate, session, data, remain, lows, cut, bounces, twomonth, fed


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Platinum, gold slide as dollar soars; palladium eases off record

Platinum plunged more than 5% and gold shed 2% on Monday, leading a sharp decline across precious metals driven by a soaring dollar, with deficit-hit palladium too giving up some gains from a record rally that saw it breach $1,700. Spot palladium eased 0.8% to $1,668.33 an ounce, having earlier touched a record high of $1,700.71. Meanwhile, gold shed 1.8% to $1,469.61 after the dollar hit multi-year highs, making the dollar-denominated metal more expensive for holders of other currencies. Earlie


Platinum plunged more than 5% and gold shed 2% on Monday, leading a sharp decline across precious metals driven by a soaring dollar, with deficit-hit palladium too giving up some gains from a record rally that saw it breach $1,700. Spot palladium eased 0.8% to $1,668.33 an ounce, having earlier touched a record high of $1,700.71. Meanwhile, gold shed 1.8% to $1,469.61 after the dollar hit multi-year highs, making the dollar-denominated metal more expensive for holders of other currencies. Earlie
Platinum, gold slide as dollar soars; palladium eases off record Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-09-30
Keywords: news, cnbc, companies, silver, palladium, metal, earlier, platinum, gold, risen, dollar, record, eases, slide, prices, quarter, soars, shed


Platinum, gold slide as dollar soars; palladium eases off record

Platinum plunged more than 5% and gold shed 2% on Monday, leading a sharp decline across precious metals driven by a soaring dollar, with deficit-hit palladium too giving up some gains from a record rally that saw it breach $1,700.

Silver slid more than 3% to its lowest in more than a month.

Spot palladium eased 0.8% to $1,668.33 an ounce, having earlier touched a record high of $1,700.71. The metal has risen more than 9% this month.

“There is strong fabrication demand but a good part of this is speculative demand from investors who expect prices to rise and also people who are getting out of gold, silver and platinum because those prices are falling, some of them are shifting into palladium,” said Jeffrey Christian, managing partner of CPM Group.

“There’s a lot of concern that there isn’t a lot of palladium around; a big part of that is people who own the metal don’t want to sell at current prices. They want to see how high the price goes before they keep their profits.”

The price of palladium, used mainly in emissions-reducing catalysts for vehicles, has risen about 33% this year and nearly 9% this quarter, despite a weakening auto sector, due to tight supply.

Meanwhile, gold shed 1.8% to $1,469.61 after the dollar hit multi-year highs, making the dollar-denominated metal more expensive for holders of other currencies. Earlier, prices fell about 2% to their lowest since Aug. 6 at $1,465.90, with bullion also marking its first monthly decline in five.

For the quarter, however, bullion has risen more than 4% so far.

“Gold and silver … continue to decline on a slightly firmer dollar and a relatively uneventful geopolitical landscape,” INTL FCStone analyst Edward Meir said in a note.

Also weighing on gold, stocks firmed after Washington’s dismissal of a report from Friday, which had said the U.S. administration was considering delisting Chinese companies from U.S. stock exchanges.

Investors also kept a close eye on the U.S. Federal Reserve’s monetary policy.

The central bank cut interest rates earlier in September for the second time this year.

“The Fed said they’re going to be very cautious about lowering rates since it’s not clear that we really need to, which was taken as a confirmation that there’s a fair bit of potential growth before getting concerned about recession. So people backed away from some of the fears that drove them into gold on a short-term basis.” CPM Group’s Christian said.

Elsewhere, platinum dropped 4.4% at $889.29, having earlier slid about 5% to touch its lowest since Aug. 28 at $876. Silver shed about 3% to $17.03 after hitting a more than one-month low of $16.92.

However, both metals are up about 6% and 11.5% for the quarter respectively.


Company: cnbc, Activity: cnbc, Date: 2019-09-30
Keywords: news, cnbc, companies, silver, palladium, metal, earlier, platinum, gold, risen, dollar, record, eases, slide, prices, quarter, soars, shed


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Gold set for weekly loss as US data, dollar weigh

Canadian maple leafs sit on the faces of one ounce gold coins in London, the United Kingdom, on July 15, 2014. Gold prices fell on Friday and was on track for its third weekly fall for the month, restrained as a slew of U.S. economic data beat expectations and the dollar held near multi-week highs against major currencies. Spot gold fell 0.4% to $1,499.22 per ounce at 0744 GMT, declining 1% for the week after a near 2% gain last week. Lower interest rates reduce the opportunity cost of holding n


Canadian maple leafs sit on the faces of one ounce gold coins in London, the United Kingdom, on July 15, 2014. Gold prices fell on Friday and was on track for its third weekly fall for the month, restrained as a slew of U.S. economic data beat expectations and the dollar held near multi-week highs against major currencies. Spot gold fell 0.4% to $1,499.22 per ounce at 0744 GMT, declining 1% for the week after a near 2% gain last week. Lower interest rates reduce the opportunity cost of holding n
Gold set for weekly loss as US data, dollar weigh Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-09-27
Keywords: news, cnbc, companies, weigh, economic, interest, weekly, gold, political, dollar, near, data, rates, set, fell, trade, loss, ounce


Gold set for weekly loss as US data, dollar weigh

Canadian maple leafs sit on the faces of one ounce gold coins in London, the United Kingdom, on July 15, 2014.

Gold prices fell on Friday and was on track for its third weekly fall for the month, restrained as a slew of U.S. economic data beat expectations and the dollar held near multi-week highs against major currencies.

Spot gold fell 0.4% to $1,499.22 per ounce at 0744 GMT, declining 1% for the week after a near 2% gain last week.

U.S. gold futures were down 0.6% lower at $1,506.01 per ounce.

“A bunch of U.S. economic data came way above the forecasts, like the new home sales data and that along with a strong dollar is weighing on gold right now,” said Jigar Trivedi, a commodities analyst at Mumbai-based Anand Rathi Shares & Stock Brokers.

The National Association of Realtors’ pending home sales index rose 1.6% to a reading of 107.3 for August, the association said on Thursday, while economists polled by Reuters had forecast an increase of 0.9%.

The greenback held near multi-week highs against major currencies as heightened risks from political tensions to the Sino-U.S. trade war increased its safe-haven appeal.

A whistle-blower report released on Thursday said U.S. President Donald Trump not only abused his office in attempting to solicit Ukraine’s interference in the 2020 U.S. election for his political benefit, but that the White House tried to “lock down” evidence about that conduct.

This added to the uncertainties around the global growth outlook amid a prolonged U.S.-China trade spat.

European shares also rose on Friday, with London stocks outperforming due to a weaker pound, while hopes of a quick resolution to the U.S.-China trade war offset worries of slowing economic growth and rising political risks.

However, investors were cautious on mixed signals from China and the United States on their tariff dispute, which has helped the bullion gain about 17% so far this year.

A number of central banks across the globe, like the Fed, the European Central Bank and Bank of Japan, have cut interest rates to stimulate the economy amid fear of a potential recession.

“If the global economic situation does not improve, we may see central banks around the world cutting down interest rates,” said Margaret Yang Yan, a market analyst at CMC Markets.

Lower interest rates reduce the opportunity cost of holding non-yielding bullion and weigh on the dollar, making gold cheaper for investors holding other currencies.

China’s top diplomat said on Thursday Beijing was willing to buy more U.S. products, and that talks would yield results if both sides “take more enthusiastic measures” to show goodwill and reduce “pessimistic language.”

But reports saying Washington is unlikely to allow American firms to supply China’s Huawei Technologies undermined hopes of a complete deal between the countries.

Spot gold may test a support at $1,488 per ounce, a break below which could cause a fall towards $1,446, according to Wang Tao, a Reuters market analyst for commodities and energy technicals.

Silver fell 1.34% to $17.56 per ounce, platinum down 0.2%, at $928.34 per ounce and palladium fell 0.5% to $1,659.54 per ounce.


Company: cnbc, Activity: cnbc, Date: 2019-09-27
Keywords: news, cnbc, companies, weigh, economic, interest, weekly, gold, political, dollar, near, data, rates, set, fell, trade, loss, ounce


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post