Has #gold already bottomed? -

The level of uncertainty that is now very high worldwide is set to persist because of it, through year end at the very least. Uncertainty is not simply a Spanish debt factor, nor an E.U. one, but the sight of politics clashing with finance is a developed world phenomenon and one that is deeply structural. As long as it persists it is positive for gold and silver. The developed world is allowing the situation to persist and face the danger of rupture by doing so, as central banks carry the burden of softening the risks through further monetary stimulation. The result is an economic and monetary backdrop that ensures a positive environment for precious metals.

Has gold already bottomed? - INDEPENDENT VIEWPOINT

Has gold already bottomed? - INDEPENDENT VIEWPOINT

mineweb.com

Has gold already bottomed?

With gold continuing to bounce off $1,700 and the dollar showing slight strength, the question facing investors today is if it continues to fall, where will the fall stop and a turn happen?

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Author: Julian Philips
Posted: Monday , 29 Oct 2012

JOHANNESBURG (Gold Forecaster) - 

Gold Today -New York closed at $1,712.00 down 70 cents. This morning, Asia and London dealers are pull it back through $1,714 area. From there it hovered around $1,712 in line with the euro's moves and then Fixed at $1,712.00 up $8 on Friday and in the euro at €1,326.720 up €10 while the euro was at €1: $1.29.04 weaker than Friday's over €1: $1.30+. Ahead of New York's opening gold stood at $1,712.31 and in the euro at €1,326.75.

Silver Today - Silver closed higher at $32.06 down 6 cents in New York on Friday. It then dropped to $31.93 in London as it battled to stay above $32, ahead of New York's opening.

Gold _{(very short-term)}

Gold will consolidate with a neutral bias, in New York today.

Silver _{(very short-term)}

Silver will consolidate with a neutral bias, in c today.

Price Drivers

Gold & Silver - It is becoming clearer that with Spain's success at raising 95% of its loan requirements that its need for a bailout is not as pressing as markets were led to believe. If it does turn to the E.U. for a bailout it may only do so in December. This is in the face of a worsening economy in Spain.

But that is not bad news for gold. The level of uncertainty that is now very high worldwide is set to persist because of it, through year end at the very least. Uncertainty is not simply a Spanish debt factor, nor an E.U. one, but the sight of politics clashing with finance is a developed world phenomenon and one that is deeply structural. As long as it persists it is positive for gold and silver. The developed world is allowing the situation to persist and face the danger of rupture by doing so, as central banks carry the burden of softening the risks through further monetary stimulation. The result is an economic and monetary backdrop that ensures a positive environment for precious metals.

With gold continuing to bounce off $1,700 and the dollar showing slight strength today the question facing investors is if it continues to fall, where will the fall stop and a turn happen? Or has it already bottomed and is about to turn? [To follow our weekly commentary, please subscribe to our newsletters at www.GoldForecaster.com  and www.SilverForecaster.com].

Silver - Silver has become slightly weaker than gold struggling to hold above $32.

Julian D.W. Phillips for the Gold & Silver Forecasters

Global Gold Price (1 ounce)

 

Today

3 days ago

Franc

Sf1,604.52

Sf1,595.34

US

$1,712.31

$1,704.33

EU

1,326.75

€1,319.91

India

Rs.92,490.42

Rs.91,275.39

 

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Original Page: http://www.mineweb.com/mineweb/view/mineweb/en/page103855?oid=160979&sn=Detail

Platts Top 250 #Oil Companies Rankings

Platts Top 250 Global Energy Companies Rankings

See the full rankings here:  Platts Top 250 Rankings

What #Caterpillar Inc’s Financial Results Tell Us About the #Mining Industry

Bottom Line: It will be interesting to see if the ongoing weakness in the mining sector undermines sales further than anticipated. With little likely to lift metals prices or raise demand, the risk for further capex weakness is likely on the downside more than the up.

Caterpillar’s Results and the Mining Sector

What do Cat’s results tell us about global mining? Well, sales are up 9 percent in the US as the housing market is believed to have bottomed and construction activity has finally picked up. Sales to the mining sector overseas, though, continue to look weak as capital expenditure is postponed.
Both extensions and greenfield mining projects are being delayed and cancelled as miners find it tougher to justify the financial conditions following steep falls in commodity prices. The outlook for most metals-based mining projects, with the possible exception of copper, looks much less certain today than it did twelve months ago and many major projects have been put back as a result.
Caterpillar’s numbers reflect this hesitancy and the understanding this will translate into lower sales in 2013. The firm is suggesting 2013 numbers will be much the same as 2012, with some construction growth in the US offsetting slower emerging market growth and Europe continuing to flat line as it has done this year.
It will be interesting to see if Caterpillar has this right, or if the ongoing weakness in the mining sector undermines sales further than anticipated. With little likely to lift metals prices or raise demand, the risk for further capex weakness is likely on the downside more than the up.
A repeat of this record year therefore seems like a Big Ask, even for a firm like Caterpillar.

See the whole story online here: What Caterpillar Inc’s Financial Results Tell Us About the Mining Industry