News I'm Reading Today
1)Gold recovers after two-week lows, awaits U.S. data
Gold steadied on Thursday after falling to its lowest in two weeks and platinum recovered from a five-week low, but the metals remained vulnerable because of a volatile dollar.
2) Buyers In India Resume Purchases (sorry, this one is Bloomberg News -- not on the web yet)
Dec. 7 (Bloomberg) -- Gold may rise for in London, snapping a two-day decline, as manufacturers in India, the biggest buyer, resume purchases after prices dropped to a two-week low.
India's gold demand of 164.8 metric tons in the third quarter was 16 percent higher than a year earlier, while global demand was 2 percent lower, figures from the producer-funded World Gold Council show. The metal has dropped 3 percent from a three-month high of $649.95 on Dec. 1.
3) Australian Employment Rises More Than Expected, Stoking Inflation Concern
Australian employment rose more than three times as much as expected in November, worsening a worker shortage that threatens to drive up wages and inflation. The currency climbed as traders bet interest rates may be increased.
4) Leveraged to the hilt: Juniors give investors jitters
It is a measure of how twitchy many investors have grown about debt-heavy energy sector juniors that when Bear Ridge Resources Ltd. recently unveiled what may turn out to be its biggest gas find ever, its shares tanked.
In all, 27 of the juniors had net debt of at least twice their annualized cash flow, up from 25 at the end of the second quarter and from 17 at the end of the first -- although Mr. Knapp said the increase had more to do with lower cash flow than higher debt.
5) Red-hot market for nickel
Prices for the base metal have more than doubled this year because of rising demand from Chinese manufacturers. Inventories, meantime, have sunk to a record low amid delays in starting new mining projects. That trend will likely continue, strategists said.
“As demand increases, projects aren't coming up nearly as quickly as we would like,” said Bart Melek, senior economist at BMO Capital Markets. “There will be stress on supply as demand is high.”
6) Bullish Forecast for (Australian) Shares in '07
THE high-flying resources sector and a world awash with savings will underpin an Australian share market gain of up to 14 per cent in 2007, according to AMP Capital chief economist and head of strategy Shane Oliver.
About the only market to perform better will be Asian equities outside Japan, a term that covers China, Hong Kong, Taiwan, South Korea and Singapore.
Gold steadied on Thursday after falling to its lowest in two weeks and platinum recovered from a five-week low, but the metals remained vulnerable because of a volatile dollar.
2) Buyers In India Resume Purchases (sorry, this one is Bloomberg News -- not on the web yet)
Dec. 7 (Bloomberg) -- Gold may rise for in London, snapping a two-day decline, as manufacturers in India, the biggest buyer, resume purchases after prices dropped to a two-week low.
India's gold demand of 164.8 metric tons in the third quarter was 16 percent higher than a year earlier, while global demand was 2 percent lower, figures from the producer-funded World Gold Council show. The metal has dropped 3 percent from a three-month high of $649.95 on Dec. 1.
3) Australian Employment Rises More Than Expected, Stoking Inflation Concern
Australian employment rose more than three times as much as expected in November, worsening a worker shortage that threatens to drive up wages and inflation. The currency climbed as traders bet interest rates may be increased.
4) Leveraged to the hilt: Juniors give investors jitters
It is a measure of how twitchy many investors have grown about debt-heavy energy sector juniors that when Bear Ridge Resources Ltd. recently unveiled what may turn out to be its biggest gas find ever, its shares tanked.
In all, 27 of the juniors had net debt of at least twice their annualized cash flow, up from 25 at the end of the second quarter and from 17 at the end of the first -- although Mr. Knapp said the increase had more to do with lower cash flow than higher debt.
5) Red-hot market for nickel
Prices for the base metal have more than doubled this year because of rising demand from Chinese manufacturers. Inventories, meantime, have sunk to a record low amid delays in starting new mining projects. That trend will likely continue, strategists said.
“As demand increases, projects aren't coming up nearly as quickly as we would like,” said Bart Melek, senior economist at BMO Capital Markets. “There will be stress on supply as demand is high.”
6) Bullish Forecast for (Australian) Shares in '07
THE high-flying resources sector and a world awash with savings will underpin an Australian share market gain of up to 14 per cent in 2007, according to AMP Capital chief economist and head of strategy Shane Oliver.
About the only market to perform better will be Asian equities outside Japan, a term that covers China, Hong Kong, Taiwan, South Korea and Singapore.
Check out my new gold and energy blog at MoneyAndMarkets.com
posted by Sean Brodrick @ 9:18 AM
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