Lucky diamonds & cash for gold

AM-PM Roundup Gold, silver prices gain as coronavirus outbreak escalates Gold and silver prices are moderately higher in midday U.S. futures trading Thursday. Some risk aversion is back in the marketplace late this week, as the coronavirus outbreak has escalated in China. February gold futures were last up $7.00 an ounce at 1,578.60. March Comex silver prices were last up $0.118 at $17.61 an ounce.... New cases of coronavirus increased markedly Thursday in China's Hubei province. There were over 14,800 new cases were reported Thursday in contrast to around 2,000 new cases reported Wednesday. Reports said there were around 240 new deaths in the region. Chinese health officials also widened their definition used to confirm cases. More than 1,300 people have died from the epidemic and the total number of afflicted in the Hubei province stands at over 48,200. The World Health Organization warned the recent reports about the slowdown in the spread of the virus should be treated with extreme caution. This outbreak could still go in any direction, the WHO said, regarding the status of the outbreak. China’s businesses are being seriously impacted. There are reports of impending steel shortages and other supply chain disruptions. Auto sales in China are reported down around 20%. Global crude oil demand in the first quarter of this year is forecast to hit the slowest rate of growth in 10 years amid the coronavirus outbreak, according to the International Energy Agency. The IEA said there is already a major slowdown in oil consumption and the wider economy in China. The ebb and flow of this matter as it relates to the marketplace continuesshifting between the front burner and the back burner of the marketplace on any given trading day. The key outside markets today see crude oil prices firmer and trading around $51.50 a barrel. Meantime, the U.S. dollar index is slightly up in early U.S. trading and not far below this week’s multi-month high. Live 24 hours gold chart [Kitco Inc.] Technically, April gold futures bulls have the comfortable overall near-term technical advantage. However, they need to show more power to restart a three-month-old price uptrend on the daily bar chart. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at the February high of $1,598.50. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,542.80. First resistance is seen at today’s high of $1,581.70 and then at $1,590.00. First support is seen at today’s low of $1,568.50 and then at this week’s low of $1,564.40. Wyckoff's Market Rating: 6.5

Gold holds gains after U.S. jobless claims rise 2,000 to 205,000 - Gold maintained overnight gains after Labor Department data Thursday showed that initial weekly U.S. jobless claims rose by 2,000 to a lower-than-forecast, seasonally adjusted 205,000 in the week to Saturday. Spot gold was last up $7.40 to $1,573.20 an ounce. The report came out at the same time as the January Consumer Price Index.... Consensus expectations compiled by various news organizations had called for initial jobless claims to be around 210,000 to 211,000. The government revised the prior week’s tally to 203,000 from the previously reported 202,000. Meanwhile, the four-week moving average for new claims often viewed as a more reliable measure of the labor market since it smooths out week-to-week volatility was unchanged at 212,000. Continuing jobless claims, the number of people already receiving benefits and reported with a one-week delay, decreased by 61,000 to a seasonally adjusted 1,698,000 during the week ending Feb. 1, the government said.

This stock market rally is not real, but gold sector is going to explode The equities markets have been propped up artificially by liquidity injected by the Federal Reserve, but the mining sector is going through a transformative phase, this according to Chris Mancini, analyst of Gabelli Gold Funds. From a fundamental perspective, what’s changing is that the gold mining companies are now thinking of themselves as investment vehicles that generate free cash flow and can pay dividends, Mancini said.

News Bites No one's in the mood to buy gold jewelry - China Gold Association The bad news continues to pile up within China’s gold market; jewelry demand is expected to take a hit as a result of growing fears surrounding the coronavirus. In a recent interview with Bloomberg, Zhang Yongtao, chief executive officer of the China Gold Association, said that jewelry demand is expected to plunge in the world’s top market for gold consumption. He added that a fear of the coronaviru...s is keeping consumers at home. People are not in the mood to shop for jewelry. Stores and shopping malls are closed because of the virus. The sales of gold jewelry and bars will drop substantially this year, Yongtao said in the interview. The comments come following dismal sales during the Lunar New Year celebrations. Nancy Wong, deputy chief executive officer of Luk Fook Holdings, said that the international jeweler saw a significant drop in store sales and daily retail traffic across mainland China, Hong Kong and Macau during the week-long holiday. The dismal sales comes after a disappointing 2019. According to data from the World Gold Council (WGC), Chinese jewelry demand declined by 7% last year. The WGC noted that record high gold prices in the Chinese yuan was the biggest factor weighing on demand last year. This year, it appears that the main factors impacting jewelry demand have shifted to weak economic growth and fears over the coronavirus. Rhona O’Connell, head of market analysis for EMEA and Asia regions of INTL FCStone, said in a recent report that Chinese demand could fall 10% in 2020. However, some market analysts are downplaying the disappointing Lunar New Year sales. In a recent interview with Kitco News, Juan Carlos Artigas, director of investment research at the WGC, said that it is too early in the year to tell how Chinese gold demand may turn out. He added that one week won’t make or break annual gold demand. I think when it comes to Chinese gold demand we need to take a wait-and-see approach, he said.

The gold prices are oversold as Wall Street, Main Street see upside potential next week Kitco News) - The gold market has run too low too fast, bringing bullish Wall Street analysts back into the marketplace according to the latest results from the Kitco News Weekly Gold Survey. Meanwhile, Main Street investors remain significantly bullish on gold in the near-term as it appears economic uncertainty and the prospect of lower global interest rates provide a bid for the yellow m...Continue reading

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