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
What Happens To The Global Economy If the Oil Price Collapses Below $40 - 14th Nov 19
7 days of Free FX + Crypto Forecasts -- Join in - 14th Nov 19
How to Use Price Cycles and Profit as a Swing Trader – SPX, Bonds, Gold, Nat Gas - 13th Nov 19
Morrisons Throwing Thousands of Bonus More Points at Big Spend Shoppers - JACKPOT! - 13th Nov 19
What to Do NOW in Case of a Future Banking System Breakdown - 13th Nov 19
Why China is likely to remain the ‘world’s factory’ for some time to come - 13th Nov 19
Gold Price Breaks Down, Waving Good-bye to the 2019 Rally - 12th Nov 19
Fed Can't See the Bubbles Through the Lather - 12th Nov 19
Double 11 Record Sales Signal Strength of Chinese Consumption - 12th Nov 19
Welcome to the Zombie-land Of Oil, Gold and Stocks Investing – Part II - 12th Nov 19
Gold Retest Coming - 12th Nov 19
New Evidence Futures Markets Are Built for Manipulation - 12th Nov 19
Next 5 Year Future Proof Gaming PC Build Spec November 2019 - Ryzen 9 3900x, RTX 2080Ti... - 12th Nov 19
Gold and Silver - The Two Horsemen - 11th Nov 19
Towards a Diverging BRIC Future - 11th Nov 19
Welcome to the Zombie-land Of Stock Market Investing - 11th Nov 19
Illiquidity & Gold And Silver In The End Game - 11th Nov 19
Key Things You Need to Know When Starting a Business - 11th Nov 19
Stock Market Cycles Peaking - 11th Nov 19
Avoid Emotional Investing in Cryptocurrency - 11th Nov 19
Australian Lithium Mines NOT Viable at Current Prices - 10th Nov 19
The 10 Highest Paying Jobs In Oil & Gas - 10th Nov 19
World's Major Gold Miners Target Copper Porphyries - 10th Nov 19
AMAZON NOVEMBER 2019 BARGAIN PRICES - WD My Book 8TB External Drive for £126 - 10th Nov 19
Gold & Silver to Head Dramatically Higher, Mirroring Palladium - 9th Nov 19
How Do YOU Know the Direction of a Market's Larger Trend? - 9th Nov 19
BEST Amazon SMART Scale To Aid Weight Loss for Christmas 2019 - 9th Nov 19
Why Every Investor Should Invest in Water - 8th Nov 19
Wait… Was That a Bullish Silver Reversal? - 8th Nov 19
Gold, Silver and Copper The 3 Metallic Amigos and the Macro Message - 8th Nov 19
Is China locking up Indonesian Nickel? - 8th Nov 19
Where is the Top for Natural Gas? - 7th Nov 19
Why Fractional Shares Don’t Make Sense - 7th Nov 19
The Fed Is Chasing Its Own Tail; It Doesn’t Care What You Think - 7th Nov 19
China’s path from World’s Factory to World Market - 7th Nov 19
Where Is That Confounded Recession? - 7th Nov 19
FREE eBook - The Investment Strategy that could change your future - 7th Nov 19

Market Oracle FREE Newsletter

How To Buy Gold For $3 An Ounce

Gold Hits Fresh Euro Record, "Breaks Downtrend" in Dollars

Commodities / Gold and Silver 2010 Feb 17, 2010 - 10:13 AM GMT

By: Adrian_Ash


Best Financial Markets Analysis ArticleTHE PRICE OF WHOLESALE gold bullion rose for the fifth day running against the US Dollar early Wednesday in London, touching the best level in 4 weeks at $1127 an ounce and breaking new record highs for Euro investors above €820.

Global stock markets also rose once again, with London's FTSE100 now recovering half of the last month's 9% drop.

The Euro erased a little of Tuesday's sharp bounce vs. the Dollar, but US Treasury bonds continued to tick lower after new data showed the Chinese government selling a record amount of Washington's debt in Dec.

Import-price inflation in the United States jumped to a 15-month high of 11.5% in Jan., the Labor Dept. said.

Crude oil today rose above $77.50 per barrel.

"Gold has pushed through its 50 and 100 day moving averages," notes one London dealer, "and also broke above an important [down] trendline" starting at the record peak of early Dec.

"We believe that Western Gold Investment demand will remain well underpinned," says the mining-financed World Gold Council in its latest analysis, "regardless of whether the economic recovery gathers momentum or stumbles in 2010.

"If the global economy falters," the WGC says in its latest Gold Demand Trends report, "then Western investors will continue to look towards gold for its diversification and portfolio insurance properties.

"Conversely, if the economic recovery becomes more firmly entrenched, then inflation concerns are likely to continue to gain prominence."

New UK data today showed average earnings lagging the 14-month high in consumer-price inflation reported Tuesday.

Thursday and Friday will bring a raft of price-inflation data from the United States and 16-nation Eurozone.

New York's SPDR Gold Trust – the world's largest Gold ETF – yesterday added 3 tonnes to the 1106 tonnes of gold it stores at HSBC bank in London, held to back the value of its stock-market shares.

The first rise in trust-fund holdings since mid-Dec., that addition took the SPDR's stockpile within 2.5% of New Year's record level.

London's GBS gold fund kept its holdings unchanged Tuesday after shedding 4 tonnes to 120 tonnes over the previous three weeks.

It peaked at 137 tonnes last June.

"The outlook for non-Western demand remains price dependent," the World Gold Council goes on, noting that – overall – identifiable gold demand fell 11% last year from 2008, dropping to 3386 tonnes worldwide.

The lowest global demand since 2003 by volume, that very nearly matched 2008's record gold-demand by value as the US-Dollar Gold Price averaged a 12% rise.

On the other side of the commodity trade, "Gold supply in 2009 was up 11% on the levels of 2008," says the WGC report, based on data from London's GFMS consultancy.

The "single biggest contributor" to support – whether through new Western companies such as Cash4Gold or via more traditional Asian cash-raising – was "recycling" by existing private gold-owners selling their metal. It added a massive 1549 tonnes of gold to global supply in 2009, according to GFMS's latest estimate.

Recycling in 2009 rose 27% from 2008 and was larger by almost two-thirds from 2007.

"There was some selling back of gold jewelry by retailers," the WGC says of Oct-Dec.'s 3% rise over the last quarter of 2008. "The Middle East was the biggest contributor to the Q4 increase."

In Dubai this month, the current Dubai Shopping Festival – a twice-annual event organized by the emirate's Department of Economic Development – has seen "subdued" sales and footfall reports

Dubai's Gold & Jewelry Group, which represents over 700 gold retailers, decided not to take part after disappointing sales at the previous event.

"We have seen fewer tourists," the website quotes Joseph Ullas, a manager at one Joyalukkas store in the downtown gold souk.

"However, we are still seeing good business from Indians, especially those seeking diamond jewelry."

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