Best of the Week
Most Popular
1. Stock Markets and the History Chart of the End of the World (With Presidential Cycles) - 28th Aug 20
2.Google, Apple, Amazon, Facebook... AI Tech Stocks Buying Levels and Valuations Q3 2020 - 31st Aug 20
3.The Inflation Mega-trend is Going Hyper! - 11th Sep 20
4.Is this the End of Capitalism? - 13th Sep 20
5.What's Driving Gold, Silver and What's Next? - 3rd Sep 20
6.QE4EVER! - 9th Sep 20
7.Gold Price Trend Forecast Analysis - Part1 - 7th Sep 20
8.The Fed May “Cause” The Next Stock Market Crash - 3rd Sep 20
9.Bitcoin Price Crash - You Will be Suprised What Happens Next - 7th Sep 20
10.NVIDIA Stock Price Soars on RTX 3000 Cornering the GPU Market for next 2 years! - 3rd Sep 20
Last 7 days
Further Clues Reveal Gold’s Weakness - 26th Nov 20
Fun Things to Do this Christmas - 26th Nov 20
Industries that Require Secure Messaging Apps - 26th Nov 20
Dow Stock Market Trend Analysis - 25th Nov 20
Amazon Black Friday Dell 32 Inch S3220DGF VA Curved Screen Gaming Monitor Bargain Deal! - 25th Nov 20
Biden the Silver Bull - 25th Nov 20
Inflation Warning to the Fed: Be Careful What You Wish For - 25th Nov 20
Financial Stocks Sector ETF Shows Unique Island Setup – What Next? - 25th Nov 20
Herd Immunity or Herd Insolvency: Which Will Affect Gold More? - 25th Nov 20
Stock Market SEASONAL TREND and ELECTION CYCLE - 24th Nov 20
Amazon Black Friday - Karcher K7 FC Pressure Washer Assembly and 1st Use - Is it Any Good? - 24th Nov 20
I Dislike Shallow People And Shallow Market Pullbacks - 24th Nov 20
Small Traders vs. Large Traders vs. Commercials: Who Is Right Most Often? - 24th Nov 20
10 Reasons You Should Trade With a Regulated Broker In UK - 24th Nov 20
Stock Market Elliott Wave Analysis - 23rd Nov 20
Evolution of the Fed - 23rd Nov 20
Gold and Silver Now and Then - A Comparison - 23rd Nov 20
Nasdaq NQ Has Stalled Above a 1.382 Fibonacci Expansion Range Three Times - 23rd Nov 20
Learn How To Trade Forex Successfully - 23rd Nov 20
Market 2020 vs 2016 and 2012 - 22nd Nov 20
Gold & Silver - Adapting Dynamic Learning Shows Possible Upside Price Rally - 22nd Nov 20
Stock Market Short-term Correction - 22nd Nov 20
Stock Market SPY/SPX Island Setups Warn Of A Potential Reversal In This Uptrend - 21st Nov 20
Why Budgies Make Great Pets for Kids - 21st Nov 20
How To Find The Best Dry Dog Food For Your Furry Best Friend?  - 21st Nov 20
The Key to a Successful LGBT Relationship is Matching by Preferences - 21st Nov 20
Stock Market Dow Long-term Trend Analysis - 20th Nov 20
Margin: How Stock Market Investors Are "Reaching for the Stars" - 20th Nov 20
World’s Largest Free-Trade Pact Inspiration for Global Economic Recovery - 20th Nov 20
Dating Sites Break all the Stereotypes About Distance - 20th Nov 20
THE STOCK MARKET BIG PICTURE - Video - 19th Nov 20
Reasons why Bitcoin is Treading at it's Highest Level Since 2017 and a Warning - 19th Nov 20
Media Celebrates after Trump’s Pro-Gold Fed Nominee Gets Blocked - 19th Nov 20
DJIA Short-term Stock Market Technical Trend Analysis - 19th Nov 20
Demoncracy Ushers in the Flu World Order How to Survive and Profit From What Is Coming - 19th Nov 20
US Bond Market: "When Investors Should Worry" - 18th Nov 20
Gold Remains the Best Pandemic Insurance - 18th Nov 20
GPU Fan Not Spinning FIX - How to Easily Extend the Life of Your Gaming PC System - 18th Nov 20
Dow Jones E-Mini Futures Tag 30k Twice – Setting Up Stock Market Double Top - 18th Nov 20
Edge Computing Is Leading the Next Great Tech Revolution - 18th Nov 20
This Chart Signals When Gold Stocks Will Explode - 17th Nov 20
Gold Price Momentous ally From 2000 Compared To SPY Stock Market and Nasdaq - 17th Nov 20
Creating Marketing Campaigns Using the Freedom of Information Act - 17th Nov 20
ILLEGITIMATE PRESIDENT - 17th Nov 20
Stock Market Uptrend in Process - 17th Nov 20
How My Friend Made $128,000 Investing in Stocks Without Knowing It - 16th Nov 20
Free-spending Biden and/or continued Fed stimulus will hike Gold prices - 16th Nov 20
Top Cheap Budgie Toys - Every Budgie Owner Should Have These Safe Bird Toys! - 16th Nov 20
Line Up For Your Jab to get your Covaids Freedom Pass and a 5% Work From Home Tax - 16th Nov 20
You May Have Overlooked These “Sleeper” Precious Metals - 16th Nov 20
Demystifying interesting facts about online Casinos - 16th Nov 20
What's Ahead for the Gold Market? - 15th Nov 20
Gold’s Momentous Rally From 2000 Compared To Stock Market SPY & QQQ - 15th Nov 20
Overclockers UK Quality of Custom Gaming System Build - OEM Windows Sticker? - 15th Nov 20
UK GCSE Exams 2021 CANCELLED! Grades Based on Mock Exams and Teacher Assessments - 15th Nov 20

Market Oracle FREE Newsletter

How to Get Rich Investing in Stocks by Riding the Electron Wave

Gold Attempting to Break Above $1200 As Barrack Ends Hedging

Commodities / Gold & Silver 2009 Dec 01, 2009 - 07:53 AM GMT

By: Adrian_Ash

Commodities

Best Financial Markets Analysis ArticleTHE PRICE OF GOLD hit a new intra-day high in London trade early Tuesday, driven within $1.50 of $1200 per ounce as world stock markets leapt and the US Dollar sank after Dubai World – which requested a "debt freeze" last Thursday – said it's in talks to restructure almost half of its $59 billion owing.

The Dollar fell below $1.50 per Euro for the third time in six weeks. Crude oil rose above $78 a barrel.


Mid- and long-term government bond prices fell everywhere bar Japan, which today announced a fresh $114 billion of quantitative easing, further extending the money creation begun in 2001.

The world's largest gold mining firm, Barrick Mining, said just ahead of the New York opening that it's closed the remaining "forward sales" on its hedge book, and "now has full leverage to the gold price.

Further press reports out of China meantime said State Council advisor Ji Xiaonan believes Beijing should start investing in at least 1,000 tonnes of gold per year for its official reserves.

"We suggested that China's gold reserves should reach 6,000 tons in the next 3-5 years and perhaps 10,000 tons in 8-10 years," the China Youth Daily quotes Li, who said he led an expert 'task force' on the matter last year.

A hoard of that size would overtake the United States' official holding, world-leader since before WWII.

"That is in line with many officials' view that China should decrease the proportion of its $2 trillion foreign exchange reserves held in Dollar-linked investments and raise its gold holdings to diversify its portfolio," says Australia's ABC News.

The gold price in Chinese Yuan this morning jumped to new record highs above CNY 8160 per ounce.

Gold also broke new record highs vs. the Euro, trading above €795 an ounce and finally topping the intra-day peak of 19 Feb. 2009.

Tuesday morning's Gold Fix – set as a clearing price for London's largest dealers and used as a benchmark worldwide – hit new record highs against the Dollar, Euros and Sterling.

Measured in Japanese Yen, Swiss Francs and Canadian Dollars, wholesale gold prices peaked just shy of last Thursday's new all-time highs.

Measured in Australian Dollars – now paying 3.75% per year, after the third rate hike in 3 months by the Reserve Bank in Sydney – held one-sixth below Feb. 09's record high.

"Growth in 2010 is likely to be close to trend and inflation close to target," said RBA governor Glenn Stevens, "with the risk of serious economic contraction...having passed."

In US gold investing, New York's SPDR Gold Trust yesterday added two tonnes to its bullion hoard, held at HSBC Bank vaults in London to back the value of its "gold tracking" shares.

The world's largest gold ETF, the SPDR grew its holdings by 2.4% last month, but failed to record new record volume with 1129 tonnes of metal.

Latest data from US regulator the Commodity Futures Trading Commission, released Monday night, meantime showed the open interest in US gold derivatives shrinking by 10% in the week to last Tuesday.

Down to a 3-week low, the total number of Comex gold futures and option contracts remained one-third larger from the start of September at a near-record high. And as overall open interest fell back, the "net long" position held by speculative traders as a group reversed the previous week's drop, swelling by 2.2% to equal a claim on 992 tonnes of Bullion.

"The case for gold remains bullish, with investment demand yet to show signs of abating," reckons Andrey Kryuchenkov, analyst at VTB Capital.

"Physical buying continues apace, and investment demand is strong," says Walter de Wet at Standard Bank, also in London.

"There is a genuine investment demand for gold," says J.P.Morgan's Ian Henderson, manager of the former investment bank's Natural Resources Fund, "which is something we haven't seen for a long time."

"Our positive view on the gold price led us to accelerate the elimination of these [forward] contracts ahead of the schedule we established," said Aaron Regent, Barrick Mining's president and CEO in this morning's press release.

"Barrick's gold production and reserves are now completely unhedged and our capital structure has also been simplified," he added, pointing to what was a 12-month plan as recently as Sept.

By Adrian Ash
BullionVault.com

Gold price chart, no delay | Free Report: 5 Myths of the Gold Market
Formerly 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