Gold rises as investors await Trump’s choice of Fed chair – CNBC

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Gold prices inched up on Thursday, helped by a weaker dollar as investors waited for the nomination of a new U.S. Federal Reserve chair and the unveiling of U.S. tax reform legislation later in the day.

A decision by the U.S. Fed on Wednesday to leave interest rates unchanged pushed the dollar lower, helping lift dollar-denominated gold by making it cheaper for holders of other currencies.

“The slightly weaker dollar is the main explanation (for gold’s rise),” said Julius Baer analyst Carsten Menke.

Spot gold was up 0.09 percent at $1,275.91 an ounce at 8:35 a.m. ET after touching $1,281.43, the highest since Oct. 26. U.S. gold futures fell 0.1 percent at $1,276 an ounce.

Investor focus was moving to the choice of the next Fed chair, said Menke.

U.S. President Donald Trump is expected on Thursday to nominate Fed Governor Jerome Powell to replace Janet Yellen as leader of the central bank. Powell is seen as less likely to push for rapid interest rate rises than other candidates.

Gold is sensitive to rising interest rates because they push up bond yields, making non-yielding gold less attractive, and tend to boost the dollar.

“If he (Trump) were to pick Fed Governor Powell as expected, gold would likely make slight gains,” said analysts at Commerzbank.

But Menke predicted prices could fall to $1,200 by the end of the year. “We think further rate rises are on the cards, which should support the U.S. dollar and yields,” he said.

Markets are pricing a 97 percent likelihood of a rate increase in December, according the CME Fedwatch tool, but are less certain of the pace of rises next year.

That pace could be accelerated if tax reform legislation to be unveiled by Republicans in the House of Representatives on Thursday were enacted and succeeded in speeding economic growth.

On the technical side, gold was struggling to break above its 100-day moving average at $1,275.60 and indicators suggested prices will fall, analysts said.

“Gold continues to weigh on the downside and still implies a test of the current October low and the 200-day moving average at $1,260.55/$1,260.89,” said Commerzbank technical analysts.

“Between here and the $1,250 2017 uptrend we should see the market attempt to stabilize,” they said in a note.

In other precious metals, silver was down 0.2 percent to $17.09 an ounce.

Platinum was down 0.2 percent to $929 an ounce and palladium was 0.35 percent lower at $998 an ounce.


Hershey’s Gold: Candy company offers first new bar variety since 1995 – USA TODAY

PHILADELPHIA — The first new candy bar to carry the Hershey’s name in more than two decades is set to hit shelves next month.

The Hershey, Penn.-based candy maker says Hershey’s Gold will go on sale Dec. 1. It’s described as a caramelized cream bar embedded with salty peanut and pretzel bits. Hershey’s says the bar is a response to trends that it says show “the rising popularity of crunchy multi-textured candy.”

Hershey’s Gold will be the fourth bar for the brand and the first new one since Hershey’s Cookies ‘n Creme was introduced in 1995. The original Hershey’s bar was released in 1900 and was followed up by the special dark variety in 1939.

Gold hits 1-week high; Fed chair pick in focus – CNBC

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Gold rose to a one-week high on Thursday amid a weaker dollar, on increased demand from Chinese retail investors and as the market waited for the announcement of a new chair of the U.S. Federal Reserve, expected later in the day.

Spot gold was up 0.3 percent at $1,278.10 per ounce at 0617 GMT, after earlier rising to $1,281.43, the highest since Oct. 26.

U.S. gold futures edged up 0.1 percent to $1,278.80 per ounce.

“The return of Chinese investor interest in gold at these levels is a welcome vote of confidence for long-suffering gold bulls,” said Jeffrey Halley, a senior market analyst with OANDA.

Higher demand from Chinese retail buyers has raised domestic bullion prices and global prices have risen to narrow the gap, he said.

U.S. President Donald Trump is expected on Thursday to nominate Jerome Powell as the next head of the Fed, putting his own stamp on the leadership of the U.S. central bank while signalling continuity on monetary policy.

“A lot of the focus is on the Fed chair, and Trump’s expected nomination of Jerome Powell,” said OCBC analyst Barnabas Gan.

“The current movement in prices is not really about him (Powell) being hawkish or dovish, but more so about market uncertainty about what his nomination would mean.”

The dollar pulled back from a 3-1/2-month high versus the yen and also fell against the euro, sagging ahead of a U.S. tax bill that will be unveiled after a one-day delay.

The Fed kept interest rates unchanged on Wednesday and pointed to solid U.S. economic growth and a strengthening labor market while playing down the impact of recent hurricanes, a sign it is on track to lift borrowing costs again in December.

“Right now, we see prices supported above $1,270 until perhaps a week from now. But beyond that, when the Fed meets in December, we expect one more rate hike,” OCBC’s Gan said.

“On that note, we are still bearish on gold and expect prices to touch $1,250 at year-end, underpinned by the rate hike.”

Gold is highly sensitive to rising U.S. interest rates, as these lift the opportunity cost of holding non-yielding bullion, while boosting the dollar, in which it is priced.

Spot gold may break a resistance at $1,283 per ounce, and rise into a range of $1,289 to $1,295, said Reuters technical analyst Wang Tao.

Silver prices edged up 0.1 percent to $17.13 per ounce.

Platinum inched up 0.1 percent to $931.70, while palladium eased 0.2 percent to $1,000.00.


Gold prices up; focus on pick for US Fed chair – CNBC

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Gold prices held onto gains early on Thursday after the U.S. Federal Reserve left interest rates unchanged on Wednesday, and as investors awaited an announcement on a new chair for the central bank later in the day.

Spot gold was up 0.3 percent to $1,277.76 per ounce at 0047 GMT.

U.S. gold futures for December delivery edged up 0.1 percent to $1,278.60.

The dollar index, which tracks the greenback against a basket of six major rivals, was down 0.2 percent to 94.645.

The Federal Reserve kept interest rates unchanged on Wednesday and pointed to solid U.S. economic growth and a strengthening labor market while playing down the impact of recent hurricanes, a sign it is on track to lift borrowing costs again in December.

Asian shares advanced after the Fed expressed optimism about the economy, virtually cementing the case for a year-end rate hike as investors awaited the formal nomination of the next head of the central bank.

U.S. President Donald Trump plans to nominate current Fed Governor Jerome Powell as the next chair of the U.S. central bank, a source familiar with the matter said on Wednesday.

Rising expectations that President Trump will tap Powell, who is seen as more dovish on interest rates, have pressured U.S. Treasury yields and the dollar this week.

The U.S. economy unexpectedly maintained a brisk pace of growth in the third quarter as an increase in inventory investment and a smaller trade deficit offset a hurricane-related slowdown in consumer spending and a decline in construction.

Traders also awaited Donald Trump’s tax plan, which Republicans plan to release Thursday morning.

Holdings of the SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, fell 0.14 percent to 849.59 tonnes on Wednesday.

The Perth Mint’s sales of gold products fell 3.87 percent in October from a month earlier, while silver sales rose about 43 percent, the mint said in a blog post on its website on Wednesday.

South African precious metals producer Sibanye-Stillwater confirmed on Wednesday that it had laid off more than2,000 gold miners as it shuts its loss-making Cooke shafts where illegal mining syndicates have plagued its operations.


The World Is Running Out of Gold, Should You Invest? – Fortune

The world is running out of gold.

Speaking with the German newspaper Finanz und Wirtschaft this month, Pierre Lassonde, co-founder and chairman of mining royalty company Franco-Nevada, said he’s not sure how the world will be able to keep up the pace of discovery of gold deposits that it has enjoyed over the last century.

“What the industry has not done anywhere near enough is to put money back into exploration,” Lassonde told the paper. “They have not put anywhere near enough money into research and development, particularly for new technologies with respect to exploration and processing.”

In the long term, he warns, there could be a supply-demand imbalance and an increase in the price of gold around the world. The issue, in part, is that mining has slowed down due to increased costs and decreased discovery of new mining locations. The Trump administration has also been blamed for the recent surge in gold prices.

Lassonde, as well as Frank Holmes, who wrote an article about the issue for U.S. Global Investors, suggests that investors should start including gold in their portfolio if they haven’t already. Holmes recommends keeping between 5 and 10 percent of your portfolio in gold, and adding gold stocks to the mix, particularly those that are typically overlooked and undervalued.

The world is running out of gold — but there are still ways to profit … – Business Insider

attendant Aya Ito holds gold bars at a jewellery shop in


  • There’s been a slowdown in number of new gold
  • This will lead to a dip in supply and increase the
    price of gold. 

My good friend Pierre Lassonde, cofounder and chairman of
Franco-Nevada, doesn’t know how we’ll replace
the massive gold deposits of the past 130 years or so. Speaking
with the German financial newspaper Finanz und Wirtschaft this month, Pierre
says we’re seeing a significant slowdown in the number of large
deposits being discovered. Legendary goldfields such as South
Africa’s Witwatersrand Basin, Nevada’s Carlin Trend and
Australia’s Super Pit—all nearing the end of their life
cycles—could very well be a thing of the past.

Over the medium and long-term, this could lead to a supply-demand
imbalance and ultimately put strong upward pressure on the
of gold

According to Pierre:

If you look back to the 70s, 80s and 90s, in every one of those
decades, the industry found at least one 50+ million ounce gold
deposit, at least ten 30+ million ounce deposits and countless
5 to 10 million ounce deposits. But if you look at the last 15
years, we found no 50 million ounce deposit, no 30 million
ounce deposit and only very few 15 million ounce

So few new large mines are being discovered today, Pierre says,
mostly because companies have had to slash exploration budgets in
response to lower gold prices. Earlier this year, S&P Global Market Intelligence reported
that total exploration budgets for companies involved in mining
nonferrous metals fell for the fourth straight year in 2016.
Budgets dropped to $6.9 billion, the lowest point in 11 years.
Although we’ve seen an increase in spending so far this year, it
still dramatically trails the 2012 heyday.

COMM total nonferrous exploration budgets fell 11 year low 2016 10272017 LGUS Global Investors

And because it takes seven years on average for a new mine to
begin producing—thanks to feasibility studies, project approvals
and other impediments—output could recede even more rapidly in
the years to come.

“It doesn’t really matter what the gold price will do in the next
few years,” Pierre says. “Production is coming off, and that
means the upward pressure on the gold price could be very

Have we reached peak gold?

Other factors contributing to the decline include tougher
regulations and higher production costs. And unlike with the oil
industry, no “fracking” method has been invented yet to extract
gold from hard-to-reach areas, though Barrick—the world’s largest
producer by output—has been experimenting with sensors at its Cortez
project in Nevada.What Pierre is talking about, of course, is the
idea of “peak gold.” I wrote about this last year and suggested
another factor that could be curtailing new discoveries—namely,
the low-hanging fruit has likely already been
Gold is both scarce and finite—one of the main
reasons why it’s so highly valued—and explorers are now having to
dig deeper and venture farther into more extreme environments to
find economically viable deposits.

Take a look at how drastically annual output has fallen in South
Africa, once the world’s top gold-producing country by far. In
the 1880s, it was the discovery of gold in South Africa’s
prolific Witwatersrand Basin—responsible for more than 40 percent
of all gold ever mined in human history, if you can believe
it—that helped transform Johannesburg into one of the world’s
largest and most populous cities. Today, South Africa’s economy
is the most advanced and stable in Sub-Saharan Africa, all thanks
to the yellow metal.

In 1970, miners dug up more than 1,000 metric tons—an
unfathomably large amount. Since then, production has steadily
dropped. No longer in the top spot, South Africa produced only
167.1 tons in 2016, an 83 percent plunge from the 1970 peak.
Meanwhile, miners in the notorious Mponeng mine—already the
world’s deepest at 2.5 miles—continue to follow veins even deeper
into the earth at greater and greater expense.

COMM south africa gold output steady decline more than 45 years 10272017 LGMarkets Insider

Australia could soon be seeing a similar downturn over the next
four decades. A first-of-its-kind study conducted by MinEx Consulting and released this month,
shows that Australia’s gold production is expected to see a
significant drop between now and 2057. By then, all but four of
the 71 currently operating mines in the country will be
exhausted. Most of these will close in the next couple of
decades. Any additional production will be dependent on new
exploration success, which will become increasingly difficult if
companies don’t invest in exploration and if the Australian
government doesn’t relax rules in the mining space.

MinEx estimates that “for the Australian gold industry to
maintain production at current levels in the longer term, it will
either need to double the amount spent on exploration or double
its discovery performance.”

To be fair, large discoveries haven’t disappeared entirely. Back
in March it was reported that Shandong Gold Group, China’s second-largest
producer, uncovered a deposit in eastern China containing between
380 and 550 metric tons of the yellow metal. If true, this would
make it the country’s largest ever by amount. The mine has an
estimated lifespan of 40 years once operations begin.

In addition, Kitco reports this month that Toronto-based
Seabridge Gold recently stumbled upon a significant goldfield in
northern British Columbia. The find appeared, coincidentally,
after a glacier retreated. It’s estimated to contain a whopping
780 metric tons.

“There’s no question that as glaciers retreat, more ground will
become available for exploration and more discoveries could be
made in that part of the world,” Seabridge CEO Rudi Fronk told

The company already has the permits to begin mining.

COMM seabridge gold up 150percent three month period 10272017 LGUS Global Investors

Exploration budgets jumped

COMM gold represents over half global annual commodities exploration budgets 10272017 LGUS Global Investors

As I said earlier, we just saw an encouraging spike in the amount
spent on exploration. According to S&P Global Market
Intelligence, exploration budgets increased in the 12-month
period as of September for the first time since 2012. Budgets
jumped 14 percent year-over-year to $7.95 billion, with gold
explorers leading the way. During this period, gold companies
spent around $4 billion on exploration, which is roughly half the
value of all nonferrous metals mining budgets.

But because exploration is getting more expensive for reasons
addressed earlier, senior producers might very well decide
instead to acquire smaller firms with proven, profitable

This could create a lot of value for investors, so I would keep
my eyes on juniors that look like targets for takeover.
Dealmaking in the Australian mining industry, for example, is
showing some growth this year compared to last, according to a
September report by accounting firm BDO. Last year, Goldcorp
finalized its deal to acquire Vancouver-based junior Kaminak
Gold, and in May of this year, El Dorado announced it was taking
over Integra Gold for C$590 million. I expect to see even more
deals in the coming months.

In the meantime, I agree with my friend Pierre’s “absolute rule”
that investors should hold between 5 and 10 percent gold in your
portfolio. I would also add gold stocks to the mix, especially
overlooked and undervalued names, and
rebalance once and twice a year. 

Bitcoin Gold Team Touts Safety Update Ahead of Coin Release – CoinDesk

The bitcoin gold development team has announced that it is adding support for two-way replay protection ahead of the network’s expected launch.

Bitcoin gold is a fork of the bitcoin network, created with the primary aim of restricting the use of specialized chips for bitcoin mining through a change in the code. The effort is backed by an open-source community of relatively unknown developers, as well as LightningASIC, a seller of mining hardware based in Hong Kong.

The addition of replay protection is intended to prevent users from sending both bitcoin gold and bitcoin when making a transaction meant to occur on just one chain – a necessity owing to the shared code between those two networks. Without the measure, a user might inadvertently send their coins to a different address, losing control of them in the process.

“In order to ensure the safety of the bitcoin ecosystem, Bitcoin Gold has implemented full replay protection, an essential feature that protects users’ coins from being spent unintentionally,” the developers wrote in a new blog post.

The announcement of replay protection comes before bitcoin gold is available to users. Currently, the network is technically private, accessible only to the development team (who are updating the code and mining blocks as they go). In the absence of actual coins, exchanges like Bitfinex have begun trading futures connected to the cryptocurrency, which are currently trading between $140 and $170, according to CoinMarketCap.

The new blog post also indicated that a public test network will be launched sometime later today.

“[The] Bitcoin Gold team will deploy a public testnet opens to miners from all over the world in a few hours,” they wrote.

Gold nugget image via Shutterstock

The leader in blockchain news, CoinDesk is an independent media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. Have breaking news or a story tip to send to our journalists? Contact us at

Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Please conduct your own thorough research before investing in any cryptocurrency.

Restoring The ‘Gold Standard’ To Copyright Trade Negotiations – Forbes

Guest post written by

Teddy Schwarzman

The Evolving Economics Of Bitcoin, Gold And Fiat Currencies – Seeking Alpha

Going for the Gold: Here’s The First New Hershey Bar in 22 Years –

Hershey is introducing Hershey Gold, a caramelized crème bar with peanuts and pretzels.
Hershey is introducing Hershey Gold, a caramelized crème bar with peanuts and pretzels. Credit: Hershey Co.

Solid gold, baby! After more than 18 months of development and testing, Hershey Co. is releasing Hershey’s Gold, its first new bar under the Hershey banner in more than two decades.

While the bar has already been shown at events including a New York exclusive tasting and October’s National Association of Convenience Store trade show in Chicago, Hershey set the official debut date for Nov. 1 to coincide with the 100 days out from the opening ceremonies of the Winter Games. Gold, Olympics, get it?

The 2018 Winter Olympics in Pyeongchang, South Korea, will be Hershey’s second as an official sponsor of the United States Olympic Committee. Hershey plans to send a tweet with a link to a Hershey’s Gold coupon each time Team USA wins a gold medal during the Winter Games.

In October, Hershey hosted an intimate taste test at a kitchen in downtown Manhattan for media to make and sample the new product. During the session, Jim St.John, senior R&D fellow and a Hershey veteran of 15 years, noted that the candymaker tried several iterations before getting the right salty-meets-sweet combination of caramelized creme encasing peanuts and pretzels. The resulting “golden” concoction, which doesn’t contain chocolate, is smoother and less crunchy than existing chocolate bars but not without texture, a key component in ensnaring younger demographics, St.John said.

“Consumers are pushing us to add more textural complexity,” he said, adding that Gold tested particularly well with millennials.

Hershey’s Gold is the first new bar under the Hershey banner since Cookies & Cream was released in 1995. And the mix of sweet and salty plays to people’s desire for treats that go beyond traditional candy bars.

“The company hopes to remain the biggest player in candy as consumers increasingly trade sugar and dairy for protein and salt,” RBC analyst David Palmer said in a research note. He’s planning to closely monitor sales of Hershey’s Gold, a new Hershey Cookie Layer Crunch triple-chocolate flavor and the company’s chocolate mixes with popcorn and pretzels, but said that the products are unlikely to “pack the punch” of last year’s Cookie Layer Crunch introduction.

Hershey continues to bring out other new bar products, including Reese’s Outrageous, a bar with caramel, Reese’s Pieces, and peanut butter covered in milk chocolate that was sampled at a Halloween event in Michigan over the weekend but won’t be in stores until May.