After a day of mixed performance yesterday, prices are holding steady this morning as investors remain focused on the development in Greece’s struggle with its debt crisis. Athens delayed its decision on accepting the terms of a new bailout for yet another day. Failure to strike a deal could push Greece into a chaotic debt default.

Major bullion bank HSBC is maintaining its forecast for an average gold price of $1,850 for 2012 and the anxieties about large and unsustainable government debt, easy monetary policies and mounting geopolitical risks.“A shift in focus from euro zone sovereign debt to the U.S. and its fiscal problems in an election year may stimulate investor demand for gold,” HSBC added.

According to HSBC, the rising mine output, sluggish jewellery demand and a large scrap supply should curb but not reverse the gold rally.“A shift in central banks’ attitudes toward bullion, as they have become strong buyers of gold after decades as net sellers, is perhaps the single most important bullish development for the market since the creation of gold ETFs,” HSBC continued.

“We expect this to continue, as official sector demand should tighten supply/demand balances, which has positive ramifications for prices,” HSBC concluded.

For more on metals click on the links below;

A number of factors which will contribute to silver's accelerated price rise in 2012 and for years to come – (Commodity online)

Where a nation’s gold and your gold should be held – (24hourgold)

Common misconceptions about gold – (safehaven)

Fed’s Bullard warns on “Looming Disaster” in the U.S. – (IB times)

Rick Rule – critical differences between gold bull today vs 70s – (King World News)

Higher Metals Prices on Tap for 2012: Barclays – (Resource investor)

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Gold and silver pullback slightly after 5 weeks of gains but prices remain supported as Asian buyers rushed to snatch bargains after better-than-expected U.S. jobs data helped prices fall nearly 2percent in the previous session, but the uncertain global economic outlook remains supportive of bullion.          

The surprisingly strong U.S. labour market data on Friday boosted confidence in the recovery of the world's largest economy, lifting prices of shares and industrial metals while dampening hopes for fresh quantitative easing measures.

But traders and analysts said gold's outlook remains rosy as the uncertain global economic outlook will force central banks around the world keep their monetary policies accommodative. "The QE3 (third round of quantitative easing) is less likely after the jobs data, but the longer-term low interest rate outlook is still potentially supportive of gold," said Nick Trevethan, senior commodity strategist of ANZ in Singapore.In addition, bargain hunting from Asian buyers, especially from China, helped gold prices to rebound, traders said.

Greece is facing a deadline later today on whether to accept the painful terms of a new bailout to avoid a chaotic default. Technical analysis suggested that spot gold could rise to $1,742 an ounce, said Reuters market analyst Wang Tao.

Money managers, including hedge funds and other large speculators, increased their bullish bets in gold, silver and copper futures and options in the week of Jan. 31, as prices of all three metals rose to multi-month highs. Strong demand from China as well as India will likely continue buoying sentiment in bullion, said Trevethan of ANZ.

For more on gold and silver click on the links below;               

(King World News: James Turk – Corrective Action in Gold is Prelude to Bullish Explosion.)

King World News

(Commodity Online: Gold prices may correct this week but trend remains up)

Commodity Online

(Daily Reckoning: Buying gold in uncertain times)

Daily Reckoning

(Gold and silver blog: Have gold investors become too bullish? ask the same question at $5,000)

Gold and Silver Blog

Precious metals prices could retreat slightly this week following five weeks of gains, but overall market watchers said any correction by gold and silver this week should be light and short-lived, as the overall trend for remains higher. A short term correction in prices should be viewed as nothing more than a buying opportunity as upward momentum and bullish sentiment remains intact.

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Dovish comments from Fed Chairman Ben Bernanke lent further support to gold yesterday with the metal trading above $1760 as Mr Bernanke suggested given the current climate it was unlikely the Fed would tighten its accommodative monetary policies anytime in the near future. “While conditions have certainly improved, the pace of the recovery has been frustratingly slow, particularly from the perspective of the millions of workers who remain unemployed or underemployed,” “moreover, the sluggish expansion has left the economy vulnerable to shocks.” 

Precious metals prices are on course for a fifth straight week of gains, as investors awaited a key U.S. labour market report after upbeat jobless claims data in the previous session helped send spot gold to a two-month high. Prices of bullion are up more than 12 percent so far this year, and the climb gathered pace last week after the U.S. Federal Reserve said it was likely to keep interest rates at ultra-low levels at least through 2014, putting pressure on the dollar.       

A cheaper greenback makes dollar-denominated commodities more affordable to holders of other currencies."The Fed's promise to keep low rates and expectations on the third round of quantitative easing have raised hopes on increasing liquidity, which will continue to push gold higher, “said Hou Xinqiang, an analyst at Jinrui Futures.

Financial markets will be watching the U.S. non-farm payrolls report, due at 1330 GMT, after data on Thursday showed a surprise fall in jobless claims last week.

For more on gold and silver click on the links below;

(Gold may hit $2,000 within 3 months: James Turk)

Commodity Online

King World News

(Silver And The Shift To Measuring Wealth In Ounces Instead Of Dollars)

Safehaven

(Are You Ready for Some Super Bowl Inflation?)

Resource Investor

(Gold will rise against 'heavily debased' currencies)

Telegraph

JP Morgan “Gold is money, everything else is credit”

Money printing and the inflation that follows remains a worry for investors. Clearly, the more paper currencies are debased, the more you want to be holding a real store of value.

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Gold extended is extending gains this morning, rising to its highest level in nearly two months, as the euro firmed on upbeat global manufacturing data and expectations that a Greek debt deal to avoid a messy default was close at hand. Investors are now eyeing the release of U.S. weekly jobless claims data to gauge the health of the world's largest economy.

Gold rose to a high of $1,751.30 an ounce, its strongest since Dec. 8. Gold remains below a lifetime high around $1,920 an ounce hit last September.  "Our near-term upside target is $1,780. We think that’s going to be taken out within the next six weeks or so," said Nick Trevethan, a senior commodity strategist at ANZ in Singapore.

Newcrest Mining, the world's no.3 gold producer, expects the price of gold to trade between $1,500 and $2,500 an ounce in the years ahead, Chief Executive Greg Robinson said at a business lunch.

The physical market was largely deserted ahead of the U.S. jobless benefits data for the week ended Jan. 28. Economists in a Reuters survey forecast a total of 375,000 new filings compared with 377,000 in the prior week. "I think people hesitate to commit too much, with the prices around $1,750. China bought a lot of gold in early January, so they just wait and see. But I think any dips in prices will attract some buying," said a dealer in Hong Kong. "A weaker dollar will benefit gold for the time being. I think short-term upside will be $1,800."

“Prices have risen sharply over the past month, and investors may take profits and gold could consolidate short-term,” James Steel, commodities analyst at HSBC Securities, said in a research note. “That said, we expect any such pullback to be short-lived and the rally should resume quickly,” he said.

“Everyone should buy silver for their portfolios”, says Peter Krauth, Global resources specialist, “whether they’re traditional value investors, dividend hounds, risk-loving day traders or confirmed gold bugs. Silver, which started out as an affordable alternative to gold – and little more than a hedge on the markets – is now seeing investor demand go through the roof”. To read the full article, click on the link below.

For more on gold and silver click on the links below;

In case you missed it (TF metals report)

TF Metals Report

Gold advances to highest in 8 weeks(Bloomberg)

Bloomberg

Everyone should buy silver for their portfolios (Peter Krauth)

Commodity Online

Gold target is between $2,750 to $3,000 (David Nichols Commodity online)

Commodity Online

Unseasonal expectations (Jeffrey Nichols on gold)

24h Gold               

The Gold Price & Gold Investment (Will Bancroft)

Resource Investor

To worry that now is a bad time or too late to buy gold just because the gold price has done so well since 2000 is to misunderstand gold.

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Gold and silver have started the day on a high after increasing more than 10% and 20% respectively over the course of last month. Had these results been realized by any of the major stock indices, you can be sure they would garner headline coverage. But strong markets in gold and silver continue to receive comparatively minimal reporting by the mainstream financial media. Actually, the value of gold and silver haven’t changed at all. Ounces of physical gold and silver are still worth the same today as they were a month ago. What has changed is that the values of paper currencies, stocks, and bonds have mostly fallen in January.

Investors eyed more data from the world’s key economies for trading cues after China released a better-than-expected manufacturing survey number.

"The short-term trend (for commodities) is still favourable, especially after encouraging data from China today," said Peter Tse, director at Scotia Mocatta in Hong Kong, but warned about increased volatility as a result of uncertainties over the euro zone debt crisis.    

Hope for further monetary easing from the United States and the euro zone run high and will likely support precious metals, especially after the U.S. Federal Reserve Chairman Ben Bernanke hinted at the possibility of more asset buying last week.  

Data due later in the day include the euro zone manufacturing survey and the Institute for Supply Management index from the United States. The euro zone flash inflation for January and U.S. January employment data from ADP are also expected.          

The reports were likely to show many economies are seeing a sluggish start in 2012 amid slowing demand, putting central banks around the world under pressure to keep an accommodative policy to support growth, which will ultimately be bullish for precious metals.

For more on gold and silver click on the links below

Commodity Online

Mine Web

King World News

IB Times

Gold and Silver Blog

Bloomberg

With gold and silver posting stellar gains for last month the bulls are firmly in control and both metals are set to test resistance levels in the coming days and weeks. Any pullback in prices no matter how slight should be viewed as an opportunity to accumulate bullion.

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Bullion prices are heading for their biggest monthly rise since August as lingering concerns about growth in the United States prompted buying from investors.              

Gold jumped nearly 5 percent last week, its fourth consecutive weekly gain, after the U.S. Federal Reserve pledged to keep interest rates near zero until at least late 2014, which could put pressure on the dollar. "Sentiment seems to have improved quite tremendously, I would say. We are now into more bullish territory, more than ever, with the Fed providing enough fundamental support," said Dominic Schnider, head of commodity research at UBS Wealth Management.  

"I think we have good reasons to believe we are going to test $1,805 in the coming day. The Fed was clearly the most important event," said Schnider. A top U.S. Federal Reserve official on Monday said he would have preferred a more optimistic statement on the U.S. economy, after the central bank last week painted a grim picture of the recovery and forecast ultra-low interest rates until late 2014.

Gold, which struck a record at $1,920.30 last September, was headed for an almost 11 percent rise this month. A spike in prices before the Lunar New Year holidays was driven partly by Chinese buying. "Before the Chinese New Year really started, we've seen quite strong gold exports from Hong Kong to China. Apparently Chinese demand was very solid," said Schnider. Since the start of 2012, silver has climbed 22 percent, doubling golds increase. After falling last year for the first time since 2008, copper has enjoyed its best start since 1987, up 13 percent for the year.             

For more on gold and silver click on the links below;

Forbes

Bloomberg

Commodity Online

King World News

Barrons

Seeking Alpha

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Gold is heading for a 10 percent monthly rise after hitting its highest since Dec. 8 last week, although a slight pullback due to profit taking has seen prices tick lower this morning.

Investors awaited the outcome of Greece's debt deal talks, but a slower-than-expected growth in the United States underpinned sentiment. EU leaders are expected to agree on a balanced budget rule in national legislation today, but unresolved problems in Greece cast a shadow on the discussions. Gold hit a high of $1,739 an ounce, its strongest since Dec.8, on safe-haven buying after data showed U.S. fourth-quarter economic growth was weaker than expected though it grew at its fastest pace in 1-1/2 years.   

"If the retreat-rally pattern seen in the past two quarters continues, gold could well rise to $1,780 an ounce by early March," said Nick Trevethan, a senior commodity strategist at ANZ in Singapore.              

"Chinese physical activity was more or less absent last week. These prices may look high to Chinese buyers after gold jumped almost 5 percent whilst they were away. We'll be watching physical flows to see whether China will chase the rally or sit back and see if the market comes back to them."

Gold, typically a safe-haven asset, has been tracking the fortunes of the euro and stocks, with speculators selling the metal for cash to cover losses in other markets, especially during this period of uncertainty in Europe. Gold also got a boost from reports the world's biggest hedge fund, Bridgewater Associates, was bullish on bullion as a hedge against inflation as governments print more money to reduce debt.             

For more on gold and silver click on the links below;

Gold and Silver Blog

Commodity Online

King World News

Kitco

Mineweb

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Precious metals prices are heading for a fourth week of gains following the Federal Reserve's pledge to keep interest rates near zero for some time. Although gold investors were relieved by the Fed's move to keep rates historically low, they will now turn their attention again to the outcome of the Greek debt crisis, with U.S. funds still cautious about lending to banks in the troubled euro zone.      

A Reuters poll showed gold's record-breaking rally of the last decade is set to extend into this year and the next as monetary policy stays loose and central banks build reserves.

Gold hit a high around $1,723 an ounce before slipping to $1,717.40 by 0258 GMT, down $2.64. Gold rallied to$1,729.76 on Thursday, its strongest since early December, but was still well below a record around $1,920 hit last September. Prices were on track for a more than 3 percent rise this week."Some of the key data that market participants could be focusing on will be the first reading of the Q4 U.S. GDP. I think a positive reading in general will be good for risk assets and gold as well," said Ong Yi Ling, an analyst at Phillip Futures in Singapore. "I am actually looking for the next resistance level at about the $1,800 level," said Ong, adding that gold was prone to profit taking after recent gains.            

For more on gold and silver click on the links below;

Commodity Online

Bloomberg

Seeking Alpha

King World News

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Gold and silver remain in a steady mood this morning after gold jumped to its strongest in more than a month following a promise by the U.S. Federal Reserve to keep rock-bottom rates for at least two more years. This statement helped burnish the metal’s safe-haven appeal. Fed Chairman Ben Bernanke said the U.S. central bank was ready to offer the economy additional stimulus after it announced it would likely keep interest rates near zero until at least late 2014.            

Gold posted its biggest one-day gain in four months on Wednesday. "In terms of sentiment, I think the downside is still limited. I think only if we go to $1,800 or above, we have to see some selling pressure," said Ronald Leung, director of Lee Cheong Gold Dealers in Hong Kong.       

Low interest rates particularly benefit zero-yielding gold, unlike stocks and bonds. Minimal borrowing costs also tend to fuel a gradual increase in commodity prices, supporting the metal's traditional role as a hedge against inflation. But volatile trade in recent days suggested some investors were unsure about direction, with the debt crisis still persisting in Europe.                

"Gold has also become increasingly vulnerable to external cataclysmic events that trigger abrupt changes when there are no apparent reasons for gold to perform that way," said Pradeep Unni, senior analyst at Richcomm Global Services.  "Such wild movements have reduced the peculiar attribute of gold as a hedge against equity market slides. This aims to point out that part of the rally in gold is also due to heightened investor optimism in global financial markets.”

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Commodity Online

Fast Markets

King World News

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Gold and silver are climbing higher this morning, both rallying from their biggest drop in four weeks. The U.S. central bank releases interest-rate forecasts for the first time later today, potentially weakening the dollar and boosting commodities demand.

The dollar traded near the lowest level in three weeks against the euro before the Federal Open Market Committee releases the forecasts. That helped to drive Asian stocks, copper and oil higher.

“It’s all about the dollar,” said Nick Trevethan, an analyst at Australia & New Zealand Banking Group Ltd. “This is the first time the FOMC is giving its forecast, and I think people are keen to see what it looks like.”

For more on gold and silver click on the links below;

Commodity Online

Mineweb

King World News

Wealth Wire

Gold and Silver Blog

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