Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
US Presidential Election Year Stock Market Seasonal Trend - 29th Nov 24
Who controls the past controls the future: who controls the present controls the past - 29th Nov 24
Gold After Trump Wins - 29th Nov 24
The AI Stocks, Housing, Inflation and Bitcoin Crypto Mega-trends - 27th Nov 24
Gold Price Ahead of the Thanksgiving Weekend - 27th Nov 24
Bitcoin Gravy Train Trend Forecast to June 2025 - 24th Nov 24
Stocks, Bitcoin and Crypto Markets Breaking Bad on Donald Trump Pump - 21st Nov 24
Gold Price To Re-Test $2,700 - 21st Nov 24
Stock Market Sentiment Speaks: This Is My Strong Warning To You - 21st Nov 24
Financial Crisis 2025 - This is Going to Shock People! - 21st Nov 24
Dubai Deluge - AI Tech Stocks Earnings Correction Opportunities - 18th Nov 24
Why President Trump Has NO Real Power - Deep State Military Industrial Complex - 8th Nov 24
Social Grant Increases and Serge Belamant Amid South Africa's New Political Landscape - 8th Nov 24
Is Forex Worth It? - 8th Nov 24
Nvidia Numero Uno in Count Down to President Donald Pump Election Victory - 5th Nov 24
Trump or Harris - Who Wins US Presidential Election 2024 Forecast Prediction - 5th Nov 24
Stock Market Brief in Count Down to US Election Result 2024 - 3rd Nov 24
Gold Stocks’ Winter Rally 2024 - 3rd Nov 24
Why Countdown to U.S. Recession is Underway - 3rd Nov 24
Stock Market Trend Forecast to Jan 2025 - 2nd Nov 24
President Donald PUMP Forecast to Win US Presidential Election 2024 - 1st Nov 24
At These Levels, Buying Silver Is Like Getting It At $5 In 2003 - 28th Oct 24
Nvidia Numero Uno Selling Shovels in the AI Gold Rush - 28th Oct 24
The Future of Online Casinos - 28th Oct 24
Panic in the Air As Stock Market Correction Delivers Deep Opps in AI Tech Stocks - 27th Oct 24
Stocks, Bitcoin, Crypto's Counting Down to President Donald Pump! - 27th Oct 24
UK Budget 2024 - What to do Before 30th Oct - Pensions and ISA's - 27th Oct 24
7 Days of Crypto Opportunities Starts NOW - 27th Oct 24
The Power Law in Venture Capital: How Visionary Investors Like Yuri Milner Have Shaped the Future - 27th Oct 24
This Points To Significantly Higher Silver Prices - 27th Oct 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Gold Remains Stable as Global Stock Markets Tick Higher

Commodities / Gold & Silver 2009 Jul 17, 2009 - 09:00 AM GMT

By: Adrian_Ash

Commodities

Best Financial Markets Analysis ArticleTHE PRICE OF PHYSICAL GOLD slipped into the New York opening on Friday, easing back $2 from a London AM Gold Fix of $934.50 an ounce as global stock markets ticked higher for the fourth session this week.

Crude oil held onto Thursday's bounce above $62 per barrel. US government debt prices rose, pushing the yield on 10-year Treasuries down to 3.45%.


Citigroup and Bank of America joined Goldman Sachs and J.P.Morgan in reporting better-than-expected earnings for the second quarter of 2009.

New US housing starts and permits also beat analyst forecasts, up more than 7% on June's data from May.

"Overall, the dominant situation for Gold right now is the summer holiday," said trading manager Dick Poon at the Hong Kong office of metal-refinery Heraeus  to Reuters earlier.

"It is also a quiet season for manufacturing. There is not so much demand in the market."

Eighteen out of 32 professional gold-market traders and analysts today told Bloomberg News today that Gold Prices will rise next week, adding this week's 2.1% rise.

Last Friday, 21 out of 32 professionals told the newswire that gold would fall by today.

"We believe an upside close outside this range [of $925-943] is needed to bring  in fresh gold buying," says the technical note from Scotia Mocatta.

"If we can take out 943 then we should see 960 and potentially 990. The 100-day moving average at 925 should act as a minor support on any pullback."

Tokyo Gold Futures ticked lower on Friday, but ended the week 3.6% better as the Nikkei stock index added 1.2%.

Forex markets were mostly unchanged for the day, leaving the Euro up 1¢ and ¥3 from last Friday's finish at $1.41 and ¥132 against the US and Japanese currencies respectively.

But British investors looking to Buy Gold saw the price touch an 8-session high of £575 an ounce as Sterling dropped 2¢ from Thursday's two-week highs above $1.6450.

Italy's proposed tax on its own central-bank gold reserves meantime threatened to jeopardize the government's entire "anti-crisis" budget after the parliamentary speaker objected to cutting the rate from 6% to 1% of capital appreciation.

Aimed at helping to close a 2009 deficit worth more than 5% of GDP, the €250 million hit to the Banca d'Italia has met fierce opposition from the European Central Bank (ECB) in Frankfurt.

Zimbabwe today raised its annual budget by 22% to US$1.2 billion, slapping a new 3% levy on local Gold Mining companies but failing so far to give full details.

The country's gold-mining output now accounts for one-third of all exports. It dropped by 49% in 2008 to a 90-year low, while the central bank printed money to support government spending, stoking inflation estimated at 500 billion per cent by South Africa's Times in Johannesburg.

"Government deficits, mainly the result of automatic stabilizers [such as unemployment benefits] rather than discretionary policy, are the only thing that has saved [the United States] from a second Great Depression," says Princeton professor Paul Krugman on his New York Times blog.

"All indications are that deflation has been successfully fended off – so far, at least," says the Curious Capitalist blog at Time magazine after Thursday's strong US consumer-price data.

"The weakening US Dollar from 2002-2008 led to higher global liquidity and higher asset prices like stocks," says Steven Barrow at Standard Bank in London. "This came to a crashing end in mid 2008 but there are  signs that it could be building up again.

"Add this to the growing evidence  that US investors are sending more money into foreign markets again and it  looks as if this association between stronger stocks and a weaker dollar could have further to run. "

Citing support for Gold Prices at $920 – and pegging resistance at $944 – Barrow's colleague Walter de Wet says "the main event" next week will be Federal Reserve chairman Ben Bernanke's testimony to the Senate about "how and when" he'll move to reduce the liquidity pumped into the financial system since the crisis began two years ago in August.

"We do not foresee any rush to drain liquidity," says de Wet. "The liquidity created by central banks globally...has merely filtered through to the financial markets. Should Bernanke indicate that large-scale draining is unnecessary, precious metals should benefit."

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

© 2005-2022 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