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
Friday Stock Market CRASH Following Israel Attack on Iranian Nuclear Facilities - 19th Apr 24
All Measures to Combat Global Warming Are Smoke and Mirrors! - 18th Apr 24
Cisco Then vs. Nvidia Now - 18th Apr 24
Is the Biden Administration Trying To Destroy the Dollar? - 18th Apr 24
S&P Stock Market Trend Forecast to Dec 2024 - 16th Apr 24
No Deposit Bonuses: Boost Your Finances - 16th Apr 24
Global Warming ClImate Change Mega Death Trend - 8th Apr 24
Gold Is Rallying Again, But Silver Could Get REALLY Interesting - 8th Apr 24
Media Elite Belittle Inflation Struggles of Ordinary Americans - 8th Apr 24
Profit from the Roaring AI 2020's Tech Stocks Economic Boom - 8th Apr 24
Stock Market Election Year Five Nights at Freddy's - 7th Apr 24
It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- 7th Apr 24
AI Revolution and NVDA: Why Tough Going May Be Ahead - 7th Apr 24
Hidden cost of US homeownership just saw its biggest spike in 5 years - 7th Apr 24
What Happens To Gold Price If The Fed Doesn’t Cut Rates? - 7th Apr 24
The Fed is becoming increasingly divided on interest rates - 7th Apr 24
The Evils of Paper Money Have no End - 7th Apr 24
Stock Market Presidential Election Cycle Seasonal Trend Analysis - 3rd Apr 24
Stock Market Presidential Election Cycle Seasonal Trend - 2nd Apr 24
Dow Stock Market Annual Percent Change Analysis 2024 - 2nd Apr 24
Bitcoin S&P Pattern - 31st Mar 24
S&P Stock Market Correlating Seasonal Swings - 31st Mar 24
Here's a Dirty Little Secret: Federal Reserve Monetary Policy Is Still Loose - 31st Mar 24
Tandem Chairman Paul Pester on Fintech, AI, and the Future of Banking in the UK - 31st Mar 24
Stock Market Volatility (VIX) - 25th Mar 24
Stock Market Investor Sentiment - 25th Mar 24
The Federal Reserve Didn't Do Anything But It Had Plenty to Say - 25th Mar 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Daily London Gold Market Report - Gold Rallies to Key Resistance Level at $665

Commodities / Gold & Silver Jul 12, 2007 - 08:35 AM GMT

By: Adrian_Ash


GOLD PRICES ROSE steadily through the Asian and early London sessions on Thursday, touching $665 per ounce for US investors as the US open drew near.

Gold also recovered more than 0.7% from yesterday's low against the British Pound, but rose more slowly versus the Euro, only just breaking €482 per ounce.

"Funds are shifting more into gold for safe-haven reasons as currencies, stocks and bonds are all volatile now," said Tatsuo Kageyama, an analyst at Kanetsu Asset Management in Tokyo , to Reuters earlier.

Japanese stocks slipped 0.4% by the close today, while Europe 's bourses crept higher to undo Wednesday's 0.3% loss in the EuroFirst 300 index. Wall Street futures were flat.

For Japanese gold buyers, spot prices held above ¥81,000 this morning, more than 3% higher from the low of late June. The April '08 gold futures contract traded at the Tocom gained 0.4% today, closing at the equivalent of $670 per ounce.

"The gold market is gathering a lot of interest on price dips," says Kageyama, "as technical sentiment improved after breaking through $665 yesterday."

According to technical analysts interviewed by Reuters, the key level of $665 per ounce marks the 50% retracement of gold's drop from the April top of $693 to the June low of $638.90. "While gold did trade through the 100-day moving average [now at $663.83] and the key $665 resistance level on Wednesday," said Standard Bank in Johannesburg earlier today, "the metal really needs to post a closing above at least one but preferably both markers before any chance of a rally to the next target at $674.

"Repeated failures would only encourage a build-up of downward pressure that could threaten to force the metal lower into the $645 area, being the lower edge of the current range."

In the currency markets the US Dollar continued to slide overnight, with the British Pound re-testing Wednesday's new 26-year highs above $2.0370 before pulling. The Euro touched a new all-time high of $1.3790.

Ten-year US Treasury yields slipped two pips to 5.07% as government bond prices rose. In Tokyo, shares in Nomura Holdings lost 2.7% after a report from Deutsche Bank warned that Japan's largest securities firm may suffer losses related to complex derivatives based subprime US homebuyers' loans.

"The basic tone for all precious metals at the moment is range-trading, but the downside is limited because of strong physical demand," reckons Nobito Kaneda, a Japanese trader at Sojitz Corp. in Tokyo . "Gold dipped below $660 yesterday and attracted some buying."

Gold demand rose strongly in both India and Turkey earlier this week, according to analysts at Goldman Sachs. On the supply side, meantime, the latest US Geological Survey reports higher production in April from March – up 4% per day. But US gold mining output slipped from a year earlier, sliding 6% from the 2006 daily average.

Business Report in Johannesburg says that the Solidarity labor union has today rejected the 7% pay offer made by South Africa 's leading gold mining companies. AngloGold Ashanti , Gold Fields and Harmony Gold Mining had already raised their offer from 6%. Further talks between Solidarity, the National Union of Mineworkers and the United Association of South Africa will be held on July 23rd.

By Adrian Ash

Gold price chart, no delay | Gold prices live | Latest gold market news
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 , giving you direct access to investment gold, vaulted in Zurich , on $3 spreads and 0.8% dealing fees.

(c) BullionVault 2007

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 - 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