Best of the Week
Most Popular
1. Gold vs Cash in a Financial Crisis - Richard_Mills
2.Current Stock Market Rally Similarities To 1999 - Chris_Vermeulen
3.America See You On The Dark Side Of The Moon - Part2 - James_Quinn
4.Stock Market Trend Forecast Outlook for 2020 - Nadeem_Walayat
5.Who Said Stock Market Traders and Investor are Emotional Right Now? - Chris_Vermeulen
6.Gold Upswing and Lessons from Gold Tops - P_Radomski_CFA
7.Economic Tribulation is Coming, and Here is Why - Michael_Pento
8.What to Expect in Our Next Recession/Depression? - Raymond_Matison
9.The Fed Celebrates While Americans Drown in Financial Despair - John_Mauldin
10.Hi-yo Silver Away! - Richard_Mills
Last 7 days
Stock Market Topping Behavior - 24th May 20
Fed Action Accelerates Boom-Bust Cycle; Not A Virus Crisis - 23rd May 20
Gold Silver Miners and Stocks (after a quick drop) Ready to Explode - 23rd May 20
3 Ways to Prepare Financially for Retirement - 23rd May 20
4 Essential Car Trade-In Tips To Get The Best Value - 23rd May 20
Budgie Heaven at Bird Land - 23rd May 20
China’s ‘Two Sessions’ herald Rebound of Economy - 22nd May 20
Signs Of Long Term Devaluation US Real Estate - 22nd May 20
Reading the Tea Leaves of Gold’s Upcoming Move - 22nd May 20
Gold, Silver, Mining Stocks Teeter On The Brink Of A Breakout - 21st May 20
Another Bank Bailout Under Cover of a Virus - 21st May 20
Do No Credit Check Loans Online Instant Approval Options Actually Exist? - 21st May 20
An Eye-Opening Perspective: Emerging Markets and Epidemics - 21st May 20
US Housing Market Covid-19 Crisis - 21st May 20
The Coronavirus Just Hit the “Fast-Forward” Button on These Three Industries - 21st May 20
AMD Zen 3 Ryzen 9 4950x Intel Destroying 24 core 48 thread Processor? - 21st May 20
Dow Stock Market Trend Analysis and Forecast - 20th May 20
The Credit Markets Gave Their Nod to the S&P 500 Upswing - 20th May 20
Where to get proper HGH treatment in USA - 20th May 20
Silver Is Ensured A Prosperous 2020 Thanks To The Fed - 20th May 20
It’s Not Only Palladium That You Better Listen To - 20th May 20
DJIA Stock Market Technical Trend Analysis - 19th May 20
US Real Estate Showing Signs Of Covid19 Collateral Damage - 19th May 20
Gold Stocks Fundamental Indicators - 19th May 20
Why This Wave is Usually a Market Downturn's Most Wicked - 19th May 20
Gold Mining Stocks Flip from Losses to 5x Leveraged Gains! - 19th May 20
Silver Price Begins To Accelerate Higher Faster Than Gold - 19th May 20
Gold Will Soar Soon; World Now Faces 'Monetary Armageddon' - 19th May 20
Gold Mining Stocks Fundamentals - 18th May 20
Why the Largest Cyberattack in History Will Happen Within Six Months - 18th May 20
New AMD Ryzen 4900x and 4950x Zen3 4th Gen Processors Clock Speed and Cores Specs - 18th May 20
Learn How to Play the Violin, Kids Activities and Learning During Lockdown - 18th May 20
The Great Economy Reopening Gamble - 17th May 20
Powell Sends a Message With Love for Gold - 17th May 20
An Economic Renaissance Emerges – Stock Market Look Out Below - 17th May 20
Learn more about the UK Casino Self-exclusion - 17th May 20
Will Stocks Lead the Way Lower for Gold Miners? - 15th May 20
Are Small-Cap Stocks (Russell 2k) Headed For A Double Dip? - 15th May 20
Coronavirus Will Wipe Out These Three Industries for Good - 15th May 20
Gold and Silver: As We Go from Deflation to Hyperinflation - 15th May 20
Silver's Massive Undervaluation Relative to Gold Makes It Irresistible - 14th May 20
Bitcoin Halving Passes with no Fanfare, but Smart Money is Accumulating - 14th May 20
Will Job Market from Hell Support Gold? - 14th May 20
The Tragedy Of Missed Covid-19 Opportunities - 14th May 20
Worst Jobs Report In US Economic History - And The Stock Market Continues To Rally - 14th May 20
NASDAQ Sets Up A Massive Head and Shoulders Pattern - 14th May 20
Perceiving Coronavirus as a Disruptive Technology - 13th May 20
Why Financial Trouble Brews on the "Home" Front - 13th May 20
Stock Market ‘Sentiment Event’ Rally Grinds On - 13th May 20
The Fed Now Owns All Markets - 13th May 20
Fruit Trees Gardening to Beat Coronavirus Blues - , Apple, Cherry, Kiwi, Pears, Plums, Grapes, Bananas May 2020 - 13th May 20
Gold Investors Shouldn’t Be Losing Focus - 12th May 20
S&P 500 Bulls Again At Resistance – Now What - 12th May 20
US Fourth Turning Accelerating Towards Debt Climax - 12th May 20
Gold in the year of the Coronavirus Pandemic - 12th May 20
Hi Ho Silver : Away! - 11th May 20
The Great Stock Market Disconnect - 11th May 20
The Big Move In Silver May Be Right Now - 11th May 20
Finding Winners in the Wreckage of the Coronavirus Economic Downturn - 11th May 20
Brave New Corona World – A heated Debate between Steven Pinker and Aldous Huxley - 11th May 20
Coronavirus Catastrophe Stock Market Implications - 10th May 20
US Stock Prices are Ignoring the Economic Meltdown, Wait for it… - 10th May 20
Forecasting Crude Oil: This Method Has Been the Undefeated Champion Since 1998 - 10th May 20
Coronapocalypse and Gold - How High Is Too High for the Yellow Metal? - 10th May 20
The Illusion of Owning Gold - 10th May 20 - Nick_Barisheff
The Financial Crisis Will Continue To Lurk Even If the Lockdown Gets Eased - 10th May 20

Market Oracle FREE Newsletter

Coronavirus-stocks-bear-market-2020-analysis

Gold Strong End to the Week on Rising Inflation

Commodities / Gold & Silver 2009 May 15, 2009 - 08:00 AM GMT

By: Adrian_Ash

Commodities

THE PRICE OF WHOLESALE GOLD held steady against most major currencies Friday AM, gaining for the second week running and nearing its best Dollar finish since late March at $928 an ounce.


US stock-market futures pointed lower, meantime, as Consumer Price data showed a faster-than-forecast rate of inflation for April, up 1.9% year-on-year excluding fuel and food.

Six major US life insurers were granted access to the Troubled Asset Relief Program (TARP), which now contains $110 billion of the initial $700bn in rescue funds.

"It was mainly speculative buying that moved the metal upwards," says Wolfgang Wrzesniok-Rossbach, senior analyst at German refining group Heraeus, pointing to this week's 2.1% spike to $930 – a six-week high – in his latest Precious Metals Weekly.

"Dealer-interest was certainly rekindled by the moves in currencies and oil. The largest Gold ETF also recorded a tiny plus – the first one since 9th April."

"In contrast, interest in [physical] Gold Bars this week was again very mellow."

Heading into the typical summer lull in Indian Gold Demand – destination for one ounce in every five sold worldwide last year – "Nothing is happening. Demand is very dull," said a Mumbai bank dealer to Reuters earlier.

"Since the start of the week, demand has dried up," said another.

"I don't see demand re-emerging until gold hits 14,300 Rupees per 10 grams – about $900 an ounce," said a third.

Further ahead, however, HSBC's chief commodities analyst James Steele this week raised the bank's 2009 Gold Price forecast, up from an average of $825 an ounce to $875.

So far this year, the Dollar-price for investors Ready to Buy Gold has averaged $905 an ounce.

"Inflation fears are supporting gold," reckons Steele, and "possible US Dollar weakness remains a potential source of support.

"Stagnant mine output, reduced official sector sales, and robust ETF and retail demand are also supportive."

On the data front Friday morning, the 16 Eurozone nations reported a much worse than expected drop of 4.6% in economic output for the first quarter compared with Jan. to April 2008.

Germany's GDP shrank almost 7% year-on-year, the sharpest fall since 1970.

Frankfurt's Dax index of German stocks neared the Friday close 4.5% lower from last week, while the US currency rose against both the Euro and Sterling but lost ground to the Japanese Yen, trading ¥4 down for the week just below ¥95 per Dollar.

Crude oil fell below $58 per barrel. Government bond prices ticked higher.

The Gold Price in Euros rose to €685 per ounce, just shy of its 2009 average to date at €690.

"If I'd put it in the stock market, I could have lost the lot," says Clark Berger, a private investor in London who's made near-35% gains in gold since August, speaking to Reuters.

"If I'd put it in a bank, it could have gone bankrupt. If I'd stuck it under my mattress, I could have been robbed and had nothing left."

Instead, Mr.Berger chose to Buy Gold, turning £39,400 into £52,500 ($79,250) in eight months by using the award-winning BullionVault service.

"This crisis is not yet over, and there will, in all likelihood, be further tests ahead," said head of the International Monetary Fund (IMF) Dominique Strauss-Kahn at a conference in Vienna this morning.

"Financing conditions have remained tight and credit growth to the private sector has decelerated," said European Central Bank (ECB) vice-president Lucas Papademos at the same event Thursday, "partly as a consequence of the deleveraging of banks’ balance sheets and persisting stresses in the bank wholesale funding markets."

Barclays Bank was meantime rumored to be selling its Barclays Global Investors asset-management division for some $10 billion, while Temasek – the Singapore state's investment managers – said it quit its entire stake in Bank of America during the first 3 months of this year, taking a net $3bn loss on its initial $6bn outlay.

Over in Dubai, "There remain a number of serious concerns, namely a staggering amount of unpaid fees, which our soundings indicate are around £400m [$600m]," said Nelson Ogunshakin, chief executive of the Association for Consulting and Engineering (ACE) to The Telegraph today, after writing to the UK business secretary Lord Mandelson to ask for "political intervention" in reclaiming unpaid money from property developers in the Middle Eastern city.

The United Arab Emirates' biggest developer, Nakheel, is said to be offering just 65 cents on the Dollar to its UK contractors after the real estate market collapsed but its key projects – such as the Dubai Palm and kilometer-tall Burj Dubai tower – remain unfinished.

By Adrian Ash
BullionVault.com

Gold price chart, no delay | Free Report: 5 Myths of the Gold Market
City correspondent for The Daily Reckoning in London and a regular contributor to MoneyWeek magazine, Adrian Ash is the editor of Gold News and head of research at www.BullionVault.com , giving you direct access to investment gold, vaulted in Zurich , on $3 spreads and 0.8% dealing fees.

(c) BullionVault 2009

Please Note: This article is to inform your thinking, not lead it. Only you can decide the best place for your money, and any decision you make will put your money at risk. Information or data included here may have already been overtaken by events – and must be verified elsewhere – should you choose to act on it.

Adrian Ash Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules