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
Coronavirus Coming Storm Act Now to Protect Yourselves and Family to Survive COVID-19 Pandemic - 19th Feb 20
Future Silver Prices Will Shock People, and They’ll Kick Themselves for Not Buying Under $20… - 19th Feb 20
What Alexis Kennedy Learned from Launching Cultist Simulator - 19th Feb 20
Stock Market Potential Short-term top - 18th Feb 20
Coronavirus Fourth Turning - No One Gets Out Of Here Alive! - 18th Feb 20
The Stocks Hit Worst From the Coronavirus - 18th Feb 20
Tips on Pest Control: How to Prevent Pests and Rodents - 18th Feb 20
Buying a Custom Built Gaming PC From - 1. Delivery and Unboxing - 17th Feb 20
BAIDU (BIDU) Illustrates Why You Should NOT Invest in Chinese Stocks - 17th Feb 20
Financial Markets News Report: February 17, 2020 - February 21, 2020 - 17th Feb 20
NVIDIA (NVDA) GPU King For AI Mega-trend Tech Stocks Investing 2020 - 17th Feb 20
Stock Market Bubble - No One Gets Out Of Here Alive! - 17th Feb 20
British Pound GBP Trend Forecast 2020 - 16th Feb 20
SAMSUNG AI Mega-trend Tech Stocks Investing 2020 - 16th Feb 20
Ignore the Polls, the Markets Have Already Told You Who Wins in 2020 - 16th Feb 20
UK Coronavirus COVID-19 Pandemic WARNING! Sheffield, Manchester, Birmingham Outbreaks Probable - 16th Feb 20
iShares Nasdaq Biotechnology ETF IBB AI Mega-trend Tech Stocks Investing 2020 - 15th Feb 20
Gold Stocks Still Stalled - 15th Feb 20
Is The Technology Stocks Sector Setting Up For A Crash? - 15th Feb 20
UK Calm Before Corona Virus Storm - Infections Forecast into End March 2020 - 15th Feb 20
The Growing Weaponization of Space - 14th Feb 20
Will the 2020s Be Good or Bad for the Gold Market? - 14th Feb 20
Predictive Modeling Suggests Gold Price Will Break Above $1650 Within 15~30 Days - 14th Feb 20
UK Coronavirus COVID-19 Infections and Deaths Trend Forecast 2020 - 14th Feb 20
Coronavirus, Powell and Gold - 14th Feb 20
How the Corona Virus is Affecting Global Stock Markets - 14th Feb 20
British Pound GBP Trend and Elliott Wave Analysis - 13th Feb 20
Owning and Driving a Land Rover Discovery Sport in 2020 - 2 YEAR Review - 13th Feb 20
Shipping Rates Plunge, Commodities and Stocks May Follow - 13th Feb 20
Powell says Fed will aggressively use QE to fight next recession - 13th Feb 20
PALLADIUM - THIS Is What a Run on the Bank for Precious Metals Looks Like… - 13th Feb 20
Bitcoin: "Is it too late to get in?" Get Answers Now - 13th Feb 20
China Coronavirus Infections Soar by 1/3rd to 60,000, Deaths Jump to 1,367 - 13th Feb 20
Crude Oil Price Action – Like a Coiled Spring Already? - 13th Feb 20
China Under Reporting Coronavirus COVID-19 Infections, Africa and South America Hidden Outbreaks - 12th Feb 20
Will USD X Decline About to Trigger Precious Metals Rally - 12th Feb 20
Copper Market is a Coiled Spring - 12th Feb 20
Dow Theory Stock Market Warning from the Utilities Index - 12th Feb 20
How to Get Virgin Media Engineers to FIX Hub 3.0 Problems and NOT BS Customers - 12th Feb 20
China Under Reporting Coronavirus COVID-19 Infections by 66% Due to Capacity Constraints - 12th Feb 20
Is Coronavirus the Black Swan That Takes Gold To-Da-Moon? - 12th Feb 20
Stock Market 2020 – A Close Look At What To Expect - 12th Feb 20
IBM AI Mega-trend Tech Stocks Investing 2020 - 11th Feb 20
The US Dollar’s Subtle Message for Gold - 11th Feb 20
What All To Do Before Opening A Bank Account For Your Business - 11th Feb 20
How and When to Enter Day Trades & Swing Trade For Maximum Gains - 11th Feb 20
The Great Stock Market Dichotomy - 11th Feb 20
Stock Market Sector Rotation Should Peak Within 60+ Days – Part II - 11th Feb 20
CoronaVirus Pandemic Stocks Bear Market Risk 2020? - Video - 11th Feb 20

Market Oracle FREE Newsletter

Nadeem Walayat Financial Markets Analysiis and Trend Forecasts

Gold Bounces with Euro as Trichet Hints at Greece Bailout

Commodities / Gold and Silver 2010 Feb 09, 2010 - 08:53 AM GMT

By: Adrian_Ash


THE PRICE OF GOLD slipped from its best level in 3 sessions for both US and UK investors on Tuesday in London, easing back as the Euro currency and Eurozone stocks also cut their early gains.

Government bonds ticked lower, while US crude oil contracts pushed up towards $73 per barrel.

Silver erased a 1.6% rally as New York opened for business, holding unchanged from last week's 5-month closing low.

"The pull back is not that great compared to previous corrections," says bullion bank Scotia Mocatta, studying the bullish position of speculative traders in gold futures and options – now 15% smaller from the middle of Jan.

"But this could be taken either as a sign that the market remains relatively bullish still, or conversely it also raises the potential for more liquidation."

"Greater declines [in gold investment positions] may be evident in the coming week's data," says the VM Group in London.

Adding together the "net long" position of speculators in US and Tokyo futures, plus the outstanding size of the major gold ETF trust funds worldwide, the VM Group's Precious Metals Investment Weekly for Fortis Nederland Bank now says that global investment has shrunk 5% over the last four weeks.

China Investment Corp. – one of the world's largest sovereign wealth funds – took a $156 million exposure to gold prices at the tail-end of 2009, new US regulatory filings show.

Although small in terms of the Chinese fund's total $300bn under management, CIC's position in New York's SPDR Gold Trust shows a continuation of the fund's strategy," says Japanese metals conglomerate Mitsui, "which...saw it divert around $10bn into commodity-related concerns."

New data today confirmed that China overtook Germany in 2009 as the world's No.1 export nation, as German exports of goods fell by 18% – the sharpest year-on-year since 1950.

"The Dollar might have further to rebound as investors seek out safe-havens and as carry trades are unwound," Scotia Mocatta adds in its latest Precious Metals Monthly, but "this should not prevent gold prices from rallying as well.

"After all, the Dollar and gold both managed to rally in 2004 and in the second half of 2008."

"We'd advise taking a defensive view of the Euro," says Standard Bank's Steven Barrow today, because the "debt crisis in the Eurozone is not likely to be resolved in a benign way.

"Policymakers like those at the Fed and Bank of England have essentially chosen inflation through aggressive quantitative easing. Others, like the ECB, have opted not to take this route with the consequence that some members, like Greece, could be heading for default."

European Central Bank president Jean-Claude Trichet today raised hopes of a Eurozone rescue for the Greek government's huge fiscal deficit, by changing his schedule to include a meeting this Thursday discussing the problem.

"There is nothing like a change in a VIP's travel plans to excite the imaginations of market participants," said Stephen Lewis at London's Monument Securities on hearing the news.

Wall Street's S&P index jumped 1% at the start of trade Tuesday, remaining closely tied to the path of Euro/Dollar exchange rates and almost exactly Nailed to the Dollar Price of Gold.

New data here in the UK meantime showed Retail Sales falling faster than expected last month, even as the UK's trade balance worsened sharply.

"Amid the recent flight to safety, gilts have missed out," notes the FT's Alpha blog after the first auction of UK government debt since the Bank of England suspended its quantitative easing program drew tepid demand.

"Gilts are also lower this morning, no doubt unsettled by the latest Populus opinion poll, which showed support for the Labour party up 2 percentage points to 30% and increasing the possibility of a hung parliament."

By Adrian Ash

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 , giving you direct access to investment gold, vaulted in Zurich , on $3 spreads and 0.8% dealing fees.

(c) BullionVault 2010

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.

© 2005-2019 - 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