Gold

Conflicting signals atm.
USA Friday seemed bullish, Australia had a strong pullback today, but that may just be a reality adjustment after a very strong upday from last Thursday.
My hunch gold is more bullish than bearish.
Regarding metals, it is not uncommon for Australia to lead, today one might say gold is going down into USA going by ASX gold price action, however I would be cautious on making that judgment, if USA gold goes up today which I am expecting, then Tuesday ASX gold will likely slam into reverse and head back up.
Time will tell.
 
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Barrick and Randgold

Canada's Barrick and London-listed Randgold Resources are to create the world's largest gold miner in an $18 billion merger. While the nearest competitor, Newmont, produced 5.3 million ounces of gold last year, the combined Barrick-Randgold operation should produce over 6.5 million ounces a year. It will be listed in Toronto and New York, with Randgold's shareholders getting a 33.4% stake and the rest going to Barrick's investors. Financial Times
 
It appears gold setting itself for a push upward in time for a Christmas rally which is a usual bullish period.
However the effect of a currently strong USD is such that unless this falls greatly which is slim atm, the anticipated gold rally will in probabilities not be strong.
 
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Central banks are set to increase their purchases of gold in 2018 for the first time in five years as eastern European and Asian countries seek to diversify their reserves.

Net purchases of gold by central banks are forecast to rise to 450 metric tons this year, up from 375 tons in 2017, according to consultancy Metals Focus Ltd. That will be the first increase since 2013, when banks boosted their holdings by 646 tons, the most for several decades.

With just over two months of the year left, it’s more likely that the projection will be raised than lowered because central banks generally seem interested in purchases, according to Junlu Liang, a senior analyst at London-based Metals Focus.

“Official sector purchases are likely to remain healthy, as a result of ongoing efforts to diversify reserves among emerging market countries,” Liang said in a weekly note. “Indeed, in spite of purchases by a number of central banks in recent years, the share of total reserves that their gold holdings account for remains arguably low, especially when compared to that seen across western countries.”

The central banks of Poland and Hungary have surprised the market by adding to their gold holdings for the first time in many years. Whereas Hungary’s 10-fold increase of its gold reserves looks to be a one-off strategic purchase, Poland has made incremental additions for the last three months, suggesting the policy could continue, according to Liang.

The biggest driver of this year’s gain has been Russia, whose central bank has added about 20 tons on average every month. Kazakhstan and Mongolia have also been among the buyers.

https://www.bloomberg.com/news/arti...ncrease-gold-buying-for-first-time-since-2013
 
Anyone notice gold and silver are trading somewhat in sync with market indexes like the Dow? I thought this strange as it usually does the opposite.
 
Silver often trades with the indexes. Has more industrial/commercial uses than Gold so if indexes are going that is a signal demand for Silver is going down and vice versa.

Meanwhile Gold mostly moves against the Indexes in parabolic Manias and especially so if the Dollar is also collapsing - which it certainty is not doing lately.
 
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