Archive for June, 2013

Gold margins getting squeezed

Wednesday, June 26th, 2013

Gold margins decreasing June 2013
Barrick Gold Corp. announced this week that it will lay off approximately a third of its corporate staff in Toronto, which follows the news earlier in the month that Newmont Mining Corp. will divest a similar proportion of its 750-strong Colorado workforce.

Clearly, the gold miners are having their margins squeezed, and future production will likely wane if the commodity continues to fall in price.

In tandem with reduced output, gold producers are also less likely to sell forward in order to hedge exposure, thus reducing at least one source of future selling pressure.

Key trading figures to be released from US department of Energy

Wednesday, June 12th, 2013

Trade commodity online with bear and bull trade signalsIn the latest round of commodity news, both oil and natural gas futures are forecast to trade throughout the day with a notable amount of volatility while trending towards a moderately bearish outlook.

This is partially caused by the June 11th release that showed a rise in WTI inventories. This is naturally coupled with fears of a stagnation in economic growth in China and the continuing sluggish situation in the European economy.

Learn why the Oil Prices Set to Fall

Monday, June 3rd, 2013

Drilling for oilThe buzz from trading analysts is that world oil prices are set to fall thanks to oversupply caused by North American shales, excess inventory and a failure by the Organization of Petroleum Exporting Countries (OPEC) to cut production at its meeting last week.

Although the large, frackable oil deposit finds in Canada and the United States have met with both transportation difficulties and environmentalist opposition, they still raise fears of a coming glut in the world oil market. Meanwhile, the United States, consumer of a healthy percentage of the world’s petroleum products, already has an excess of oil inventory.