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
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
Is There a Stock Market Breakout Ahead? - 6th Nov 19
These Indicators Aren’t Putting to an Economic Resurgence - 6th Nov 19
Understanding the Different Types of Travel Insurance - 6th Nov 19
The Biggest Gold Story Of 2020 - 6th Nov 19
Best Money Saving FREE Bonfire Night Fire Works Show Sheffield 2019 - 5th Nov 19
Is the Run on the US Dollar Due to Panic or Greed? - 5th Nov 19
Reasons Why Madrid Attracts Young Professionals - 5th Nov 19
Larger Bullish Move in USD/JPY May Just Be Getting Started - 5th Nov 19
Constructive Action in Gold & Silver Stocks - 5th Nov 19
The Boring Industry That Hands +500% Gains - 5th Nov 19
Stock Market Chartology vs Fundamentals - 4th Nov 19
The Fed’s Policy Is Like Swatting Flies with Nuclear Weapons - 4th Nov 19
Stock Market Warning: US Credit Delinquencies To Skyrocket In Q4 - 4th Nov 19
Stock Market Intermediate Topping Process Continues - 4th Nov 19
Stock Market $SPY Expanded Flat, Déjà Vu All Over Again - 4th Nov 19
How To Buy Gold For $3 An Ounce - 4th Nov 19

Market Oracle FREE Newsletter

How To Buy Gold For $3 An Ounce

Gold Finds Strong Physical Demand Even as U.S. Dollar Rallies

Commodities / Gold and Silver 2010 Mar 30, 2010 - 08:18 AM GMT

By: Adrian_Ash

Commodities

THE PRICE OF GOLD gave back a 0.6% rise as New York trade began on Tuesday, slipping back to $1107 an ounce as world stock markets struggled near 18-month highs and the Dollar rose on the currency market.


Silver Prices earlier rose to their best level since March 18, up 4.4% from last week's low, to hit $17.41 an ounce at the London Fix.

German Bunds rose slightly, UK gilts fell, and US Treasury bonds held flat, with 10-year debt yielding 3.87%.

Crude oil ticked below $82 per barrel.

"Strong underlying physical demand for gold has continued," reports Walter de Wet at Standard Bank in London, "[and] in recent days has become even stronger.

"There is still little scrap coming to market, and selling hasn't been prevalent in 2010."

"Given the lack of scrap, once the Dollar starts to depreciate – which we expect in second-half 2010 – the Gold Price could climb substantially further."

On the data front today, German import prices rose more sharply than expected in Feb., adding 1.0% from Jan.

Raw input prices for Canadian manufacturers also extended their recent rise, defying analyst forecasts of a 1% drop.

Official UK data meantime revised late-2009's economic contraction to 3.1% of annual GDP, rather than the 5.3% first estimated.

Sterling jumped on the news, rising to $1.51 – and adding 3¢ from last week's 10-month low to the Dollar – despite weak poll results for the opposition Conservative Party, widely assumed to be the City's choice for this spring's General Election.

The Euro failed to hold an early 1-week high, in contrast, after last week's aid package for Greece did little to reduce Athens' financing costs in the bond market, and the Irish government began operating an €81 billion "bad bank" housing bad real-estate loans made before the global financial crisis.

Gold priced in Euros held above €823 an ounce, trading within 2% of this month's new all-time high.

The Gold Price in Sterling slipped to £734 an ounce, down 1.7% from last Friday's finish – its second-highest weekly close.

"Gold is one of those things that pops up in times when there's uncertainty and crisis," says Kimberly Sterling, a financial planner at Resource Consulting Group in Orlando, to the Orlando Sentinel today.

"It is like someone who bought real estate in 2006, at the height of that bubble. You could get hurt really badly...When it pops, it is too late to get in."

"I disagree that this is a bubble we're seeing now," says Al Baker chief investment officer for another local advisor, Resource Group of Winter Park.

"Bubbles only last a short period of time, a couple of years at most, while a trend builds upon itself and goes higher over time – 10 years in this case."

Over in China, in contrast, "A high savings ratio, plus a lack of alternative investment vehicles, points to a growing interest among the Chinese in commodity investment," notes Rhona O'Connell of the GFMS Analytics consultancy, writing at MineWeb.

"Gold Coins and bar hoarding have been growing strongly in recent years, but it is believed that the amount of gold currently in private hands is much lower than that in countries such as India and Vietnam."

Reporting on the new World Gold Council research on China's booming gold demand, "The domestic market is by no means mature," says O'Connell, "and the implication is that Chinese investors are much less likely to sell into strength than some of their counterparts elsewhere."

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 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 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