Best of the Week
Most Popular
1. Gold vs Cash in a Financial Crisis - Richard_Mills
2.Current Stock Market Rally Similarities To 1999 - Chris_Vermeulen
3.America See You On The Dark Side Of The Moon - Part2 - James_Quinn
4.Stock Market Trend Forecast Outlook for 2020 - Nadeem_Walayat
5.Who Said Stock Market Traders and Investor are Emotional Right Now? - Chris_Vermeulen
6.Gold Upswing and Lessons from Gold Tops - P_Radomski_CFA
7.Economic Tribulation is Coming, and Here is Why - Michael_Pento
8.What to Expect in Our Next Recession/Depression? - Raymond_Matison
9.The Fed Celebrates While Americans Drown in Financial Despair - John_Mauldin
10.Hi-yo Silver Away! - Richard_Mills
Last 7 days
Stock Market Final Thrust Review - 19th Jan 20
Gold Trade Usage & Price Effect - 19th Jan 20
Stock Market Trend Forecast 2020 - Trend Analysis - Video - 19th Jan 20
Stock Trade-of-the-Week: Dorchester Minerals (DMLP) - 19th Jan 20
INTEL (INTC) Stock Investing in AI Machine Intelligence Mega-trend 2020 and Beyond - 18th Jan 20
Gold Stocks Wavering - 18th Jan 20
Best Amazon iPhone Case Fits 6s, 7, 8 by Toovren Review - 18th Jan 20
1. GOOGLE (Alphabet) - Primary AI Tech Stock For Investing 2020 - 17th Jan 20
ERY Energy Bear Continues Basing Setup – Breakout Expected Near January 24th - 17th Jan 20
What Expiring Stock and Commodity Market Bubbles Look Like - 17th Jan 20
Platinum Breaks $1000 On Big Rally - What's Next Forecast - 17th Jan 20
Precious Metals Set to Keep Powering Ahead - 17th Jan 20
Stock Market and the US Presidential Election Cycle  - 16th Jan 20
Shifting Undercurrents In The US Stock Market - 16th Jan 20
America 2020 – YEAR OF LIVING DANGEROUSLY (PART TWO) - 16th Jan 20
Yes, China Is a Currency Manipulator – And the U.S. Banking System Is a Metals Manipulator - 16th Jan 20
MICROSOFT Stock Investing in AI Machine Intelligence Mega-trend 2020 and Beyond - 15th Jan 20
Silver Traders Big Trend Analysis – Part II - 15th Jan 20
Silver Short-Term Pullback Before Acceleration Higher - 15th Jan 20
Gold Overall Outlook Is 'Strongly Bullish' - 15th Jan 20
AMD is Killing Intel - Best CPU's For 2020! Ryzen 3900x, 3950x, 3960x Budget, to High End Systems - 15th Jan 20
The Importance Of Keeping Invoices Up To Date - 15th Jan 20
Stock Market Elliott Wave Analysis 2020 - 14th Jan 20
Walmart Has Made a Genius Move to Beat Amazon - 14th Jan 20
Deep State 2020 – A Year Of Living Dangerously! - 14th Jan 20
The End of College Is Near - 14th Jan 20
AI Stocks Investing 2020 to Profit from the Machine Intelligence Mega-trend - Video - 14th Jan 20
Stock Market Final Thrust - 14th Jan 20
British Pound GBP Trend Forecast Review - 13th Jan 20
Trumpism Stock Market and the crisis in American social equality - 13th Jan 20
Silver Investors Big Trend Analysis for – Part I - 13th Jan 20
Craig Hemke Gold & Silver 2020 Prediction, Slams Biased Gold Naysayers - 13th Jan 20
AMAZON Stock Investing in AI Machine Intelligence Mega-trend 2020 and Beyond - 11th Jan 20
Gold Price Reacting to Global Flash Points - 11th Jan 20
Land Rover Discovery Sport 2020 - What You Need to Know Before Buying - 11th Jan 20
Gold Buying Precarious - 11th Jan 20
The Crazy Stock Market Train to Bull Eternity - 11th Jan 20

Market Oracle FREE Newsletter

Nadeem Walayat Financial Markets Analysiis and Trend Forecasts

Precious Metal Analysts Bullish in 2010; Asia Favours Gold as Inflation Hedge

Commodities / Gold and Silver 2010 Jan 28, 2010 - 06:09 AM GMT

By: GoldCore

Commodities

Best Financial Markets Analysis ArticleGold slipped some 1% to $1,085.40/oz in US trading but then recovered to range trade from $1,085/oz to $1,091/oz in Asian trading. Gold is currently trading at $1,089.00/oz and in euro and GBP terms, gold is trading at €779/oz and £672/oz respectively.


Obama's Populist Rhetoric Soothes Markets but Uncertainty Growing
Risk appetite has returned after Obama's populist State of the Union address which has seen equity markets and gold rise tentatively in unison. Gold is up some 1% since Obama's speech but this may be due to gold bouncing from a somewhat oversold position rather than Obama's soothing words about the economy. The dollar also strengthened on Obama's speech and these gains have been maintained and appear to be capping gold below the $1,100/oz level.

The FOMC left rates unchanged but their statement was interpreted as being slightly more upbeat than before, despite the emergence of Kansas City Fed President Thomas Hoenig as a dissenting voice, concerned about developing inflation. Another note of caution ignored by many was that a housing improvement was no longer seen by the FOMC. Concerns about further declines in property markets, particularly the vulnerable commercial property market, should see continuing safe haven demand for gold.

Record low interest rates set to remain near 0% for the foreseeable future remain bullish for gold. There is still no opportunity cost in owning the non yielding yellow metal versus the dollar and other currencies that have interest rates remaining near 0%.

A risk that may not have been fully factored into markets is growing uncertainty regarding the position of Treasury Secretary Geithner who yesterday was subject to a bipartisan attack over the secretive AIG deal. The populist mood sweeping America clearly affecting politicians (Geithner was accused of incompetence and negligence) is leading to increasing uncertainty – regulatory, political, economic and monetary: gold benefits from such uncertainty.

Silver
Silver dipped as low as $16.47/oz overnight but we have seen support and recovery this morning. Silver is currently trading at $16.69/oz, €11.88/oz and £10.26/oz.

Platinum Group Metals
Platinum is trading at $1,520/oz and palladium is currently trading at $419/oz. Rhodium is at $2,450/oz.

News:

  • The Reuters Precious Metals Poll found that leading analysts of the precious metals markets remain bullish on the precious metals. Precious metals are expected to make further gains this year, with platinum group metals (PGMs) and silver forecast to outperform gold on hope that an upturn in the economic cycle will boost demand for industrial usage. 60 leading precious metals analysts, traders and fund managers (including GoldCore) took part in the survey on the outlook for precious metals in 2010 and 2011, collected in January.
  • Gold could increasingly be investors' top hedge against mounting inflationary pressures in Asia, a regional survey showed on Wednesday. With economic growth in Asia expected to lead the world again in 2010, 45 percent of investors in the region's markets outside of Japan picked the precious metal as their most favoured tool to protect their returns from inflation, while 42 percent chose equities, according to a quarterly survey from ING.
  • At the World Economic Forum in Davos, Newmont Mining Corp (NEM.N) CEO Richard O'Brien forecast that the price would in the longer term rise to $1,250 to $1,500 an ounce. O'Brien said that the gold price could range between $1,025 and $1,250 an ounce this year.
    China looks set to overtake India as the world's largest gold consumer while also being the world's largest gold producer. China's gold output jumped 11.34 percent to a record of 313.98 tonnes in 2009, securing the country's position as the world's largest producer of the yellow metal. China has dramatically opened bullion markets to active trade in the past decade, including allowing gold to be traded freely on the Shanghai Gold Exchange. Citizens owning gold was outlawed in 1949 when the communists took power and was only allowed again in 2003.

To read these and other important news and commentary, see our News and Commentary pages: http://www.goldcore.com/news and http://www.goldcore.com/commentary.

The Bullion Services Team

IRL
63
FITZWILLIAM SQUARE
DUBLIN 2

E info@goldcore.com

UK
NO. 1 CORNHILL
LONDON 2
EC3V 3ND

IRL +353 (0)1 632 5010
UK +44 (0)203 086 9200
US +1 (302)635 1160

W www.goldcore.com

WINNERS MoneyMate and Investor Magazine Financial Analysts 2006

Disclaimer: The information in this document has been obtained from sources, which we believe to be reliable. We cannot guarantee its accuracy or completeness. It does not constitute a solicitation for the purchase or sale of any investment. Any person acting on the information contained in this document does so at their own risk. Recommendations in this document may not be suitable for all investors. Individual circumstances should be considered before a decision to invest is taken. Investors should note the following: Past experience is not necessarily a guide to future performance. The value of investments may fall or rise against investors' interests. Income levels from investments may fluctuate. Changes in exchange rates may have an adverse effect on the value of, or income from, investments denominated in foreign currencies. GoldCore Limited, trading as GoldCore is a Multi-Agency Intermediary regulated by the Irish Financial Regulator.

GoldCore is committed to complying with the requirements of the Data Protection Act. This means that in the provision of our services, appropriate personal information is processed and kept securely. It also means that we will never sell your details to a third party. The information you provide will remain confidential and may be used for the provision of related services. Such information may be disclosed in confidence to agents or service providers, regulatory bodies and group companies. You have the right to ask for a copy of certain information held by us in our records in return for payment of a small fee. You also have the right to require us to correct any inaccuracies in your information. The details you are being asked to supply may be used to provide you with information about other products and services either from GoldCore or other group companies or to provide services which any member of the group has arranged for you with a third party. If you do not wish to receive such contact, please write to the Marketing Manager GoldCore, 63 Fitzwilliam Square, Dublin 2 marking the envelope 'data protection'

GoldCore 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