Best of the Week
Most Popular
1. US Housing Market Real Estate Crash The Next Shoe To Drop – Part II - Chris_Vermeulen
2.The Coronavirus Greatest Economic Depression in History? - Nadeem_Walayat
3.US Real Estate Housing Market Crash Is The Next Shoe To Drop - Chris_Vermeulen
4.Coronavirus Stock Market Trend Implications and AI Mega-trend Stocks Buying Levels - Nadeem_Walayat
5. Are Coronavirus Death Statistics Exaggerated? Worse than Seasonal Flu or Not?- Nadeem_Walayat
6.Coronavirus Stock Market Trend Implications, Global Recession and AI Stocks Buying Levels - Nadeem_Walayat
7.US Fourth Turning Accelerating Towards Debt Climax - James_Quinn
8.Dow Stock Market Trend Analysis and Forecast - Nadeem_Walayat
9.Britain's FAKE Coronavirus Death Statistics Exposed - Nadeem_Walayat
10.Commodity Markets Crash Catastrophe Charts - Rambus_Chartology
Last 7 days
Stock Market Election Year Cycles – What to Expect? - 4th Jun 20
Why Solar Stocks Are Rallying Against All Odds - 4th Jun 20
East Asia Will Be a Post-Pandemic Success - 4th Jun 20
Comparing Bitcoin to Other Market Sectors – Risk vs. Value - 4th Jun 20
Covid, Debt and Precious Metals - 3rd Jun 20
Gold-Silver Ratio And Correlation - 3rd Jun 20
The Corona Riots Begin, US Covid-19 Catastrophe Trend Analysis - 3rd Jun 20 -
Stock Market Short-term Top? - 3rd Jun 20
Deflation: Why the "Japanification" of the U.S. Looms Large - 3rd Jun 20
US Stock Market Sets Up Technical Patterns – Pay Attention - 3rd Jun 20
UK Corona Catastrophe Trend Analysis - 2nd Jun 20
US Real Estate Stats Show Big Wave Of Refinancing Is Coming - 2nd Jun 20
Let’s Make Sure This Crisis Doesn’t Go to Waste - 2nd Jun 20
Silver and Gold: Balancing More Than 100 Years Of Debt Abuse - 2nd Jun 20
The importance of effective website design in a business marketing strategy - 2nd Jun 20
AI Mega-trend Tech Stocks Buying Levels Q2 2020 - 1st Jun 20
M2 Velocity Collapses – Could A Bottom In Capital Velocity Be Setting Up? - 1st Jun 20
The Inflation–Deflation Conundrum - 1st Jun 20
AMD 3900XT, 3800XT, 3600XT Refresh Means Zen 3 4000 AMD CPU's Delayed for 5nm Until 2021? - 1st Jun 20
Why Multi-Asset Brokers Like are the Future of Trading - 1st Jun 20
Will Fed‘s Cap On Interest Rates Trigger Gold’s Rally? - 30th May
Is Stock Market Setting Up for a Blow-Off Top? - 29th May 20
Strong Signs In The Mobile Gaming Market - 29th May 20
Last Clap for NHS and Carers, Sheffield UK - 29th May 20
The AI Mega-trend Stocks Investing - When to Sell? - 28th May 20
Trump vs. Biden: What’s at Stake for Precious Metals Investors? - 28th May 20
Stocks: What to Make of the Day-Trading Frenzy - 28th May 20
Why You’ll Never Get Another Stimulus Check - 28th May 20
Implications for Gold – 2007-9 Great Recession vs. 2020 Coronavirus Crisis - 28th May 20
Ray Dalio Suggests USA Is Entering A Period Of Economic Decline And New World Order - 28th May 20
Europe’s Coronavirus Pandemic Dilemma - 28th May 20
I Can't Pay My Payday Loans What Will Happen - 28th May 20
Predictive Modeling Suggests US Stock Markets 12% Over Valued - 27th May 20
Why Stocks Bear Market Rallies Are So Tricky - 27th May 20
Precious Metals Hit Resistance - 27th May 20
Crude Oil Cuts Get Another Saudi Boost as Oil Demand Begins to Show Signs of Life - 27th May 20
Where the Markets are heading after COVID-19? - 27th May 20

Market Oracle FREE Newsletter


Global Investment Guru Sees Gold as "Great Buying Opportunity"

Commodities / Gold and Silver 2010 Feb 11, 2010 - 06:55 AM GMT

By: GoldCore


Best Financial Markets Analysis ArticleGold rallied as high as $1,083/oz early yesterday in US trading before dropping by $19 but it soon recovered to finish the day down marginally at $1,075.30/oz. It moved upwards to as high as $1,080/oz in Asian trading this morning and has held those gains in morning traded in Europe. Gold is currently trading at $1,078.00/oz and in euro and GBP terms, at €785/oz and £693/oz respectively. The fiscal challenges facing the UK and eurozone economies are seeing gold challenge resistances at £700/oz and €800/oz.

Hopes that the EU summit may alleviate the growing crisis in the eurozone have seen risk appetite return as seen in buoyant equity markets this morning. But there are concerns that the swelling public deficits seen in some European economies, more specifically Spain, Portugal and Greece may thwart recovery and future growth in the region. This will likely lead to increasing risk aversion which could see the euro, equities and government bonds come under further pressure.

A slightly weaker dollar and oil back near $75 a barrel is supporting gold. As is the continuing crisis in the eurozone with lingering concerns that the 'Greek tragedy' might lead to contagion in financial markets. And the problems confronting Greece are by no means exclusive to Greece as many other western nations' public finances face similar challenges.

Competitive currency devaluations continue as seen in Vietnam where the central bank announced its second currency devaluation since November. It devalued the dong by more than 3 percent to help balance the foreign exchange market and control the trade deficit. The dong's continuing devaluation explains the significant demand seen for gold in Vietnam in recent weeks as seen in the continuing high premiums being paid for gold - local Vietnam gold stood at a $17.08/oz premium to world gold of $1,077/oz yesterday. Reuters reports that demand remains strong: "Saigon Jewelry Holding Co. increased its gold trading volume to 40,000 taels, or 1.5 tonnes, on Tuesday as residents in Ho Chi Minh City rushed to gold shops to purchase the metal."

The lackluster response to John Paulson's new gold fund may indicate that talk of a 'gold mania' and a 'gold rush' is exaggerated. The legendary fund manager put an incredible $250 million of his own money into the fund but has only managed to raise $90 million from investors internationally. Sentiment towards gold remains tepid and cautious among market participants which suggests that gold has yet to become a bubble.

Silver has between $15.40/oz and $15.48/oz so far in Asia. Silver is currently trading at $15.43/oz, €11.22/oz and £9.92/oz.

Platinum Group Metals
Platinum is trading at $1,523/oz and palladium is currently trading at $418/oz. Rhodium is at $2,475/oz.

Asian and European shares have risen so far today, with solid economic data from China and Australia lifting sentiment as investors awaited a possible bailout for Greece. European markets were higher.

Crude-oil futures rose in Asia Thursday to nearly $75 a barrel due to a weaker U.S. dollar and speculation by traders as heavy snow blanketed much of the eastern U.S., delaying oil inventory data from the U.S. Energy Information Administration.

The pound fell after the Bank of England cut its forecast for economic growth and said inflation would undershoot its 2 per cent target significantly if interest rates rose as fast as markets were predicting. Sterling was not helped by the Bank of England's quarterly inflation report painted a gloomy picture of the UK economy.

Geopolitical risk continues to simmer with the volatile political situation in Iran continuing and simmering tensions between China and the EU and US (the US and the EU issued a strong criticism of China's restrictions on political expression today after a court upheld the 11-year prison sentence for high-profile dissident Liu Xiaobo). Iranian security forces clashed with opposition supporters today as crowds flocked to central Tehran to mark the 31st anniversary of the Islamic revolution.

Global investment guru, Marc Faber, who predicted the current crisis and was more accurate in his forecasting than even the respected Nouriel Roubini, has said that the US and Europe will eventually default on their debt. He continues to advocate having a long term diversification in gold and sees the recent correction as a "great buying opportunity".

This update can be found on the GoldCore blog here.

The Bullion Services Team




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


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 - 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