Best of the Week
Most Popular
1. Market Decline Will Lead To Pension Collapse, USD Devaluation, And NWO - Raymond_Matison
2.Uber’s Nightmare Has Just Started - Stephen_McBride
3.Stock Market Crash Black Swan Event Set Up Sept 12th? - Brad_Gudgeon
4.GDow Stock Market Trend Forecast Update - Nadeem_Walayat
5.Gold Significant Correction Has Started - Clive_Maund
6.British Pound GBP vs Brexit Chaos Timeline - Nadeem_Walayat
7.Cameco Crash, Uranium Sector Won’t Catch a break - Richard_Mills
8.Recession 2020 Forecast : The New Risks & New Profits Of A Grand Experiment - Dan_Amerman
9.Gold When Global Insanity Prevails - Michael Ballanger
10.UK General Election Forecast 2019 - Betting Market Odds - Nadeem_Walayat
Last 7 days
Market Action Suggests Downside in Precious Metals - 15th Oct 19
US Major Stock Market Indexes Retest Critical Price Channel Resistance - 15th Oct 19
“Baghad Jerome” Powell Denies the Fed Is Using Financial Crisis Tools - 15th Oct 19
British Pound GBP Trend Analysis - 14th Oct 19
A Guide to Financing Your Next Car - 14th Oct 19
America's Ruling Class - Underestimating Them & Overestimating Us - 14th Oct 19
Stock Market Range Bound - 14th Oct 19
Gold, Silver Bonds - Inflation in the Offing? - 14th Oct 19
East-West Trade War: Never Take a Knife to a Gunfight - 14th Oct 19
Consider Precious Metals for Insurance First, Profit Second... - 14th Oct 19
Stock Market Dow Elliott Wave Analysis Forecast - 13th Oct 19
The Most Successful IPOs Have This One Thing in Common - 13th Oct 19
Precious Metals & Stock Market VIX Are Set To Launch Dramatically Higher - 13th Oct 19
Discovery Sport EGR Valve Gasket Problems - Land Rover Dealer Fix - 13th Oct 19
Stock Market US Presidential Cycle - Video - 12th Oct 19
Social Security Is Screwing Millennials - 12th Oct 19
Gold Gifts Traders With Another Rotation Below $1500 - 12th Oct 19
US Dollar Index Trend Analysis - 11th Oct 19
China Golden Week Sales Exceed Expectations - 11th Oct 19
Stock Market Short-term Consolidation Does Not change Secular Bullish Trend - 11th Oct 19
The Allure of Upswings in Silver Mining Stocks - 11th Oct 19
US Housing Market 2018-2019 and 2006-2007: Similarities & Differences - 11th Oct 19
Now Is the Time to Load Up on 5G Stocks - 11th Oct 19
Why the Law Can’t Protect Your Money - 11th Oct 19
Will Miami be the First U.S. Real Estate Bubble to Burst? - 11th Oct 19
How Online Casinos Maximise Profits - 11th Oct 19
3 Tips for Picking Junior Gold Stocks - 10th Oct 19
How Does Inflation Affect Exchange Rates? - 10th Oct 19
This Is the Best Time to Load Up on These 3 Value Stocks - 10th Oct 19
What Makes this Gold Market Rally Different From All Others - 10th Oct 19
Stock Market US Presidential Cycle - 9th Oct 19
The IPO Market Is Nowhere Near a Bubble - 9th Oct 19
US Stock Markets Trade Sideways – Waiting on News/Guidance  - 9th Oct 19
Amazon Selling Fake Hard Drives - 4tb WD Blue - How to Check Your Drive is Genuine  - 9th Oct 19
Whatever Happened to Philippines Debt Slavery?  - 9th Oct 19
Gold in the Negative Real Interest Rates Environment - 9th Oct 19
The Later United States Empire - 9th Oct 19
Gold It’s All About Real Interest Rates Not the US Dollar - 8th Oct 19
A Trump Impeachment Would Cause The Stock Market To Rally - 8th Oct 19
The Benefits of Applying for Online Loans - 8th Oct 19
Is There Life Left In Cannabis - 8th Oct 19
Yield Curve Inversion Current State - 7th Oct 19
Silver Is Cheap – And Getting Cheaper - 7th Oct 19
Stock Market Back to Neutral - 7th Oct 19
Free Market Capitalism: Laughably Predictable - 7th Oct 19
Four Fundamental Reasons to Buy Gold and Silver - 7th Oct 19
Gold and Silver Taking a Breather - 7th Oct 19
Check Engine Warning Light ECU Dealer Diagnostic Cost - Land Rover Discovery Sport - 6th Oct 19

Market Oracle FREE Newsletter

Stock Market Trend Forecast Oct - Dec 2019 by Nadeem Walayat

Gold Rises with Equities, Crude Oil & Bond Yields in Thin Holiday Trade

Commodities / Gold & Silver 2009 Dec 29, 2009 - 07:18 AM GMT

By: Adrian_Ash

Commodities

THE PRICE OF GOLD held flat in what dealers called "subdued trading" early in London on Tuesday, returning from the Christmas holidays to record an AM Gold Fix at a one-week high of $1103 an ounce.

The gold price in Euros and Sterling also hit one-week highs, reaching above €765 and £689 an ounce respectively.


World stock markets extended their "Santa Claus rally", pushing London's FTSE100 to fresh 2009 highs above 5,440.

Crude oil slipped one Dollar from Monday's surge to $79 per barrel on the north-eastern United States' cold snap.

"The Dollar's recent firmness was partly due to the covering of excessive short positions," reckons Koichiro Kamei of Japan's Market Strategy Institute, speaking to Reuters.

"That adjustment seems to be coming to an end. Gold's correction may also be over, and talk of central bank buying will again be the main driver."

The US Dollar fell towards a two-week low to the Euro on the currency markets early Tuesday, but held steady against the "safe haven" Japanese Yen at ¥91.70.

UK government bonds sold lower again, pushing the yield offered by 10-year gilts up to a new 2009 high of 4.08%.

German 10-year Bunds yielded 3.37%. US Treasury bonds offered 3.85% on the 10-year note.

New data released by US regulator the Commodity Futures Trading Commission said the total number of gold futures and options contracts held open through New York's Comex exchange shrank half-a-per-cent last week to its lowest level since the start of November.

That was just before the gold price began a run of fresh all-time highs, adding 12% to $1226 an ounce, on news that the Reserve Bank of India had bought 200 tonnes of bullion for its currency reserves.

Hedge funds and other large speculators last week cut their bullish betting and grew their bearish positions, the CFTC's data showed, helping shrink the "net long" position held by non-gold-industry players by more than 5% to the equivalent of 937 tonnes.

"While we have always believed gold should be a small part of a diversified portfolio, we did not want to see widows and orphans put their life savings into it," warns a spokesman for the BlackRock Gold and General fund – this decade's best-performing investment fund globally – quoted by South Africa's Business Standard.

"In terms of technical trends, the prospects for gold look strong, but the underlying fundamentals look weak," says a note from Barclays Capital in London, pointing to a third year of falling jewelry demand in the face of record-high gold prices.

The collapse in India's gold demand – likely to fall to at least an 18-year low for 2009 at 336 tonnes – has seen the former world No.1 over-taken by Chinese households, now set to have bought up to 443 tonnes this year.

Global gold mining supply is likely to show a small uptick for 2009, but the underlying trend continues to point lower as ore grades decline, mining costs rise, and the political barriers to new mining projects grow – both from acquisitive governments in less stable, gold-rich parts of the world, as well as from the environmental lobby.

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