Best of the Week
Most Popular
1. US Housing Market House Prices Bull Market Trend Current State - Nadeem_Walayat
2.Gold and Silver End of Week Technical, CoT and Fundamental Status - Gary_Tanashian
3.Stock Market Dow Trend Forecast - April Update - Nadeem_Walayat
4.When Will the Stock Market’s Rally Stop? - Troy_Bombardia
5.Russia and China Intend to Drain the West of Its Gold - MoneyMetals
6.BAIDU (BIDU) - Top 10 Artificial Intelligence Stocks Investing To Profit from AI Mega-trend - Nadeem_Walayat
7.Stop Feeding the Chinese Empire - ‘Belt and Road’ Trojan Horse - Richard_Mills
8.Stock Market US China Trade War Panic! Trend Forecast May 2019 Update - Nadeem_Walayat
9.US China Trade Impasse Threatens US Lithium, Rare Earth Imports - Richard_Mills
10.How to Invest in AI Stocks to Profit from the Machine Intelligence Mega-trend - Nadeem_Walayat
Last 7 days
Brexit Party and Lib-Dems Pull Further Away from Labour and Tories in Latest Opinion Polls - 22nd May 19
The Deep State vs Donald Trump - US vs Them Part 2 - 21st May 19
Deep State & Financial Powers Worry about Alternative Currencies - 21st May 19
Gold’s Exciting Boredom - 21st May 19
Trade War Fears Again, Will Stocks Resume the Downtrend? - 21st May 19
Buffett Mistake Costs Him $4.3 Billion This Year—Here’s What Every Investor Can Learn from It - 21st May 19
Dow Stock Market Trend Forecast 2019 May Update - Video - 20th May 19
A Brief History of Financial Entropy - 20th May 19
Gold, MMT, Fiat Money Inflation In France - 20th May 19
WAR - Us versus Them Narrative - 20th May 19
US - Iran War Safe-haven Reasons to Own Gold - 20th May 19
How long does Google have to reference a website? - 20th May 19
Tory Leadership Contest - Will Michael Gove Stab Boris Johnson in the Back Again? - 19th May 19
Stock Market Counter-trend Rally - 19th May 19
Will Stock Market “Sell in May, Go Away” Lead to a Correction… or a Crash? - 19th May 19
US vs. Global Stocks Sector Rotation – What Next? Part 1 - 19th May 19
BrExit Party EarthQuake Could Win it 150 MP's at Next UK General Election! - 18th May 19
Dow Stock Market Trend Forecast 2019 May Update - 18th May 19
US Economy to Die a Traditional Death… Inflation Is Going to Move Higher - 18th May 19
Trump’s Trade War Is Good for These 3 Dividend Stocks - 18th May 19
GDX Gold Mining Stocks Fundamentals Update - 17th May 19
Stock Markets Rally Hard – Is The Volatility Move Over? - 17th May 19
The Use of Technical Analysis for Forex Traders - 17th May 19
Brexit Party Set to Storm EU Parliament Elections - Seats Forecast - 17th May 19
Is the Trade War a Catalyst for Gold? - 17th May 19
This Is a Recession Indicator No One Is Talking About—and It’s Flashing Red - 17th May 19
War! Good or Bad for Stocks? - 17th May 19
How Many Seats Will Brexit Party Win - EU Parliament Elections Forecast 2019 - 16th May 19
It’s Not Technology but the Fed That Is Taking Away Jobs - 16th May 19
Learn to Protect your Forex Trading Capital - 16th May 19
Gold Ratio Charts Offer The Keys to the Bull Market - 16th May 19
Is Someone Secretly Smashing the Stock Market at Night? - 16th May 19

Market Oracle FREE Newsletter

U.S. House Prices Analysis and Trend Forecast 2019 to 2021

Daily London Gold Market Report - Gold Slips Below $665

Commodities / Gold & Silver Jul 17, 2007 - 09:08 AM GMT

By: Adrian_Ash

Commodities

GOLD SLIPPED nearly $2 per ounce during the first-half of London trade on Tuesday, nearing the US open below $665, its lowest price since Thursday.

"The Dollar is still the main driver of gold prices and there will be a set of important data points this week which may influence the Euro/Dollar exchange rate and hence gold," reckons Michael Widmer, director of research at Calyon Bank.


"We expect gold to trade within a tight range as investors are unlikely to take big positions ahead of the minutes from the Fed meeting, Bernanke's testimony and the US inflation data."

Minutes from the most recent Federal Reserve meeting are due on Thursday this week. The Fed chairman, Ben Bernanke, begins a two-day testimony before Congress tomorrow. The latest US producer price inflation numbers will be released at 08:30 EST today, with Consumer Price Inflation due at the same time Wednesday.

"The Fed chairman will remind his audience that inflation remains the bigger concern," says Gerard Baker in today's London Times, "and he can be expected to be asked which inflation he means.

"The headline rate looks dangerously high. The infamous "core" (minus food and energy costs) is, if anything, a little on the low side for comfort."

Inflation data already out in the United Kingdom sent the Pound to a fresh 26-year high against the Dollar above $2.0450 on the foreign exchanges this morning. The Retail Price Index showed a surprise jump to 4.4% per year, pushed higher by rising fuel and mortgage-interest costs.

"The Bank of England aren't taking any risks," says Karen Ward at HSBC, "and will continue raising rates in the meantime. We expect another hike in September" – and anticipation of just such a move sent the price of gold for British buyers below £327 per ounce. The metal also ticked lower for French and German investors, down below €483 per ounce.

"Spot Gold will have to close above $674 to rekindle further buying interest," says Christopher Langguth in the latest technical note from Mitsui. Although the trendline on his weekly chart beginning in July 2005 remains intact, "the price has been moving sideways since May 2006."

In the all-important Indian gold market today, reports the Economic Times, investors continued to shift out of bullion and into Mumbai's surging stock market, "fearing a rise in the metal's value in the previous few trading sessions was overdone."

Gold prices had earlier fallen in the Tokyo futures market too, dropping 0.8% on the April '08 contract to the equivalent of $669.95 per ounce. The Nikkei equity index in Tokyo ended Tuesday 0.1% lower, while a raft of broker downgrades helped send the FTSE100 more than 0.8% lower by lunchtime in London . The broad FTSE EuroFirst 300 index of Europe 's top 300 stocks traded 0.6% down.

US stock index futures pointed lower ahead of the PPI inflation data, and Wall Street was nervous ahead of earnings reports from Merrill Lynch, US Bancorp and Wells Fargo. For the year so far, according to Bloomberg data, finance has been the worst performing major industry group on the S&P, and the only sector to record a loss year-to-date.

"Financial shares have certainly been a weaker area of the market and continue to be under pressure," says Peter Dunay at Leeb Capital Management New York. "There is again that concern that inflation is looming. We are still vigilant about inflation and all this subprime stuff."

By Adrian Ash
BullionVault.com

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 www.BullionVault.com , 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

© 2005-2019 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