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
The Copper/Gold Ratio Would Change the Macro - 21st Oct 20
Are We Entering Stagflation That Will Boost Gold Price - 21st Oct 20
Crude Oil Price Stalls In Resistance Zone - 21st Oct 20
High-Profile Billionaire Gives Urgent Message to Stock Investors - 21st Oct 20
What's it Like to be a Budgie - Unique in a Cage 4K VR 360 - 21st Oct 20
Auto Trading: A Beginner Guide to Automation in Forex - 21st Oct 20
Gold Price Trend Forecast into 2021, Is Intel Dying?, Can Trump Win 2020? - 20th Oct 20
Gold Asks Where Is The Inflation - 20th Oct 20
Last Chance for this FREE Online Trading Course Worth $129 value - 20th Oct 20
More Short-term Stock Market Weakness Ahead - 20th Oct 20
Dell S3220DGF 32 Inch Curved Gaming Monitor Unboxing and Stand Assembly and Range of Movement - 20th Oct 20
Best Retail POS Software In Australia - 20th Oct 20
From Recession to an Ever-Deeper One - 19th Oct 20
Wales Closes Border With England, Stranded Motorists on Severn Bridge? Covid-19 Police Road Blocks - 19th Oct 20
Commodity Bull Market Cycle Starts with Euro and Dollar Trend Changes - 19th Oct 20
Stock Market Melt-Up Triggered a Short Squeeze In The NASDAQ and a Utilities Breakout - 19th Oct 20
Silver is Like Gold on Steroids - 19th Oct 20
Countdown to Election Mediocrity: Why Gold and Silver Can Protect Your Wealth - 19th Oct 20
“Hypergrowth” Is Spilling Into the Stock Market Like Never Before - 19th Oct 20
Is Oculus Quest 2 Good Upgrade for Samsung Gear VR Users? - 19th Oct 20
Low US Dollar Risky for Gold - 17th Oct 20
US 2020 Election: Are American's ready for Trump 2nd Term Twilight Zone Presidency? - 17th Oct 20
Custom Ryzen 5950x, 5900x, 5800x , RTX 3080, 3070 64gb DDR4 Gaming PC System Build Specs - 17th Oct 20
Gold Jumps above $1,900 Again - 16th Oct 20
US Economic Recovery Is in Need of Some Rescue - 16th Oct 20
Why You Should Focus on Growth Stocks Today - 16th Oct 20
Why Now is BEST Time to Upgrade Your PC System for Years - Ryzen 5000 CPUs, Nvidia RTX 3000 GPU's - 16th Oct 20
Beware of Trump’s October (November?) Election Surprise - 15th Oct 20
Stock Market SPY Retesting Critical Resistance From Fibonacci Price Amplitude Arc - 15th Oct 20
Fed Chairman Begs Congress to Stimulate Beleaguered US Economy - 15th Oct 20
Is Gold Market Going Back Into the 1970s? - 15th Oct 20
Things you Should know before Trade Cryptos - 15th Oct 20
Gold and Silver Price Ready For Another Rally Attempt - 14th Oct 20
Do Low Interest Rates Mean Higher Stocks? Not so Fast… - 14th Oct 20
US Debt Is Going Up but Leaving GDP Behind - 14th Oct 20
Dell S3220DGF 31.5 Inch VA Gaming Monitor Amazon Prime Day Bargain Price! But WIll it Get Delivered? - 14th Oct 20
Karcher K7 Pressure Washer Amazon Prime Day Bargain 51% Discount! - 14th Oct 20
Top Strategies Day Traders Adopt - 14th Oct 20
AMD is KILLING Intel as Ryzen Zen 3 Takes Gaming Crown, AMD Set to Achieve CPU Market Dominance - 13th Oct 20
Amazon Prime Day Real or Fake Sales to Get Rid of Dead Stock? - 13th Oct 20
Stock Market Short-term Top Expected - 13th Oct 20
Fun Stuff to Do with a Budgie or Parakeet, a Child's Best Pet Bird Friend - 13th Oct 20
Who Will Win the Race to Open a Casino in Japan? - 13th Oct 20
Fear Grips Stock Market Short-Sellers -- What to Make of It - 12th Oct 20
For Some Remote Workers, It Pays to Stay Home… If Home Stays Local - 12th Oct 20
A Big Move In Silver: Watch The Currency Markets - 12th Oct 20
Precious Metals and Commodities Comprehensive - 11th Oct 20
The Election Does Not Matter, Stick With Stock Winners Like Clean Energy - 11th Oct 20
Gold Stocks Are Cheap, But Not for Long - 11th Oct 20
Gold Miners Ready to Fall Further - 10th Oct 29
What Happens When the Stumble-Through Economy Stalls - 10th Oct 29
This Is What The Stock Market Is Saying About Trump’s Re-Election - 10th Oct 29
Here Is Everything You Must Know About Insolvency - 10th Oct 29
Sheffield Coronavirus Warning - UK Heading for Higher Covid-19 Infections than April Peak! - 10th Oct 29
Q2 Was Disastrous. But What’s Next for the US Economy – and Gold? - 9th Oct 20
Q4 Market Forecast: How to Invest in a World Awash in Debt - 9th Oct 20
A complete paradigm shift will make gold the generational trade - 9th Oct 20
Why You Should Look for Stocks Climbing Out of a “Big Base” - 9th Oct 20
UK Coronavirus Pandemic Wave 2 - Daily Covid-19 Positive Test Cases Forecast - 9th Oct 20
Ryzen ZEN 3: The Final Nail in Intel's Coffin! Cinebench Scores 5300x, 5600x, 5800x, 5900x 5950x - 9th Oct 20

Market Oracle FREE Newsletter

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

Gold Bounces from $1125

Commodities / Gold & Silver 2009 Dec 09, 2009 - 08:23 AM GMT

By: Adrian_Ash

Commodities

THE PRICE OF GOLD bounced from a new 3-week low of $1125 in Asia and London on Wednesday, rising back above what several analysts called "key support" at $1138 as the US Dollar eased back on the forex market.

European equities moved in a tight range, unchanged from nine weeks ago.


The gold price for UK and Euro buyers ticked higher from early two-week lows, trading just shy of £700 and €775 respectively by lunchtime in London.

"We could see some people very excited to get back into gold," said Bernard Sin, head of forex and metals dealing at MKS Finance, a division of the Swiss refinery group.

"If you're seeking a safe haven, people will buy gold on dips."

Tokyo's finance ministry today slashed its estimate of Japanese economic growth for the third quarter from 4.8% to 1.3% annualized, sparking talk of a "double-dip" recession.

Mexico, the world's No.6 oil producer, said it has hedged 2010's net oil exports, buying what finance minister Agustín Carstens called "an insurance policy" against crude falling through $57 a barrel.

Heavily invested in Greek government bonds – which were downgraded below A-grade status on Tuesday – the five holding companies owned by Belgium's Fortis Bank were today moved to "negative outlook" by the Fitch ratings agency.

UK chancellor Alistair Darling, speaking to the House of Commons ahead of 2010's General Election, delayed a hike in corporation tax, raised state pension payments, cut duty on bingo players, extended "special support" for both youth and over-50s' unemployment, set a 50% tax on banking bonuses above £25,000, and said net public debt as a proportion of GDP won't turn lower until 2015.

Gilt prices rose during his speech, pushing one-year government borrowing costs down to 0.54%.

"Activity in the Exchange Traded Gold Funds was cautious during November," notes Darran Grabham in Standard Bank's latest Precious Metals Monthly, "which also illustrates that part of the rally in price was driven by short covering [in the derivatives market].

"Total [global gold ETF] holdings rose by only 29 tonnes in the month to exceed 1,823 tonnes...substantially better than the very small tonnages added in October."

Tuesday's near-4% drop in the gold price saw the SPDR Gold Trust, the world's largest gold ETF, sell almost 14 tonnes of its 1,130-tonne hoard, used to back the value of shares in its trust-fund structure.

Premiums charged on retail gold investment products in the United States "keep rising" says Numismaster, following the US Mint's suspension of American Eagle sales.

"The Mint also indefinitely suspended sales of gold Buffaloes last week," notes Patrick Heller, a coin dealer. "You can still purchase one-ounce gold ingots, but are looking at 3-5 weeks delivery time while new pieces are fabricated."

Looking at the gold market's major consuming nations, "Gold has continued to make new record prices," Standard's Grabham goes on, adding that "Investment bar purchasers are becoming used to higher prices, and there is also evidence that new investors – from the 'professional' classes rather than the predominantly agrarian community - are starting to enter the market."

Formerly the world's No.1 private consumer, India will import between 15 ad 20 tonnes of gold bullion this month according to the Bombay Bullion Association – sharply higher from Dec. 2008 and equal to 2007 levels.

"People in the Middle East will continue to buy jewelry" despite the Dubai debt crisis, says boutique jeweler Alisa Moussaieff.

"[Dubai's debt freeze] might cause a temporary cautiousness," she told Jewellery Outlook in a London interview, but gold "is in their blood. It's in their tradition

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