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
The Gold Stocks Correction and What Lays Ahead - 19th Oct 19
Gold during Global Monetary Ease - 19th Oct 19
US Treasury Bonds Pause Near Resistance Before The Next Rally - 18th Oct 19
The Biggest Housing Boom in US History Has Just Begun - 18th Oct 19
British Pound Brexit Chaos GBP Trend Forecast - 18th Oct 19
Stocks Don’t Care About Trump Impeachment - 17th Oct 19
Currencies Show A Shift to Safety And Maturity – What Does It Mean? - 17th Oct 19
Stock Market Future Projected Cycles - 17th Oct 19
Weekly SPX & Gold Price Cycle Report - 17th Oct 19
What Makes United Markets Capital Different From Other Online Brokers? - 17th Oct 19
Stock Market Dow Long-term Trend Analysis - 16th Oct 19
This Is Not a Money Printing Press - 16th Oct 19
Online Casino Operator LeoVegas is Optimistic about the Future - 16th Oct 19
Stock Market Dow Elliott Wave Analysis Forecast - Video - 16th Oct 19
$100 Silver Has Come And Gone - 16th Oct 19
Stock Market Roll Over Risk to New highs in S&P 500 - 16th Oct 19
10 Best Trading Schools and Courses for Students - 16th Oct 19
Dow Stock Market Short-term Trend Analysis - 15th Oct 19
The Many Aligning Signals in Gold - 15th Oct 19
Market Action Suggests Downside in Precious Metals - 15th Oct 19
US Major Stock Market Indexes Retest Critical Price Channel Resistance - 15th Oct 19
“Baghad Jerome” Powell Denies the Fed Is Using Financial Crisis Tools - 15th Oct 19
British Pound GBP Trend Analysis - 14th Oct 19
A Guide to Financing Your Next Car - 14th Oct 19
America's Ruling Class - Underestimating Them & Overestimating Us - 14th Oct 19
Stock Market Range Bound - 14th Oct 19
Gold, Silver Bonds - Inflation in the Offing? - 14th Oct 19
East-West Trade War: Never Take a Knife to a Gunfight - 14th Oct 19
Consider Precious Metals for Insurance First, Profit Second... - 14th Oct 19
Stock Market Dow Elliott Wave Analysis Forecast - 13th Oct 19
The Most Successful IPOs Have This One Thing in Common - 13th Oct 19
Precious Metals & Stock Market VIX Are Set To Launch Dramatically Higher - 13th Oct 19
Discovery Sport EGR Valve Gasket Problems - Land Rover Dealer Fix - 13th Oct 19
Stock Market US Presidential Cycle - Video - 12th Oct 19
Social Security Is Screwing Millennials - 12th Oct 19
Gold Gifts Traders With Another Rotation Below $1500 - 12th Oct 19
US Dollar Index Trend Analysis - 11th Oct 19
China Golden Week Sales Exceed Expectations - 11th Oct 19
Stock Market Short-term Consolidation Does Not change Secular Bullish Trend - 11th Oct 19
The Allure of Upswings in Silver Mining Stocks - 11th Oct 19
US Housing Market 2018-2019 and 2006-2007: Similarities & Differences - 11th Oct 19
Now Is the Time to Load Up on 5G Stocks - 11th Oct 19
Why the Law Can’t Protect Your Money - 11th Oct 19
Will Miami be the First U.S. Real Estate Bubble to Burst? - 11th Oct 19
How Online Casinos Maximise Profits - 11th Oct 19
3 Tips for Picking Junior Gold Stocks - 10th Oct 19
How Does Inflation Affect Exchange Rates? - 10th Oct 19
This Is the Best Time to Load Up on These 3 Value Stocks - 10th Oct 19
What Makes this Gold Market Rally Different From All Others - 10th Oct 19
Stock Market US Presidential Cycle - 9th Oct 19

Market Oracle FREE Newsletter

Stock Market Trend Forecast Oct - Dec 2019 by Nadeem Walayat

Gold Hits New Euro Record, Beaten by Silver, as Precious Metals Signal "Global Recovery"

Commodities / Gold and Silver 2010 Apr 06, 2010 - 07:42 AM GMT

By: Adrian_Ash

Commodities

THE PRICE OF GOLD bounced from last week's closing price against the US Dollar on Tuesday, rising as London dealers returned to work from the long Easter weekend and breaking new all-time highs against the Euro.

Asian and European stock markets also rose, as did the Dollar, which gained against everything except Australian currency after the Reserve Bank of Australia raised its key interest rate for the fifth time in six meetings.


"We don't see too much selling [in gold] but I guess the price has gone up too fast this morning when the liquidity was small," one bullion dealer in Tokyo told Reuters overnight.

"We've also seen some buying from the industrial sector in Japan but there are no inquiries from overseas buyers."

"Our strongest conviction is for a rebound of auto-related platinum-group metals demand as worldwide vehicle production rises, forcing a restocking of the metals inventories run down in 2009," reckons former Mitsui analyst Edel Tully, now chief metals strategist at Swiss bank UBS's London office.

Tully believes that platinum and palladium, which rely far more than gold on industrial demand, will outperform gold as the global economy recovers further.

The ratio of gold to platinum and palladium prices has fallen to the lowest level since Lehman Bros. collapsed in Sept. 2008, Bloomberg News notes, calling it "a sign that the global economic recovery may be gaining momentum."

"Good economic numbers should be quite positive purely for the supply-demand forecast for catalytic converters, so the economic updraft is there," agrees Jonathan Barratt of Commodity Broking Services in Sydney.

Platinum and palladium prices dropped by almost two-thirds as the global financial crisis bit.

Priced in Dollars, gold lost 33% from its 2008 top.

"[The silver price] has broken through topside downtrend resistance off its December high," says the latest technical analysis from market-makers Scotia Mocatta, meantime.

"The breach of this level [at $17.89 an ounce] makes possible another aim at the $18.90 2010 high in the metal."

The Gold/Silver Ratio – taken as a measure of bullishness towards precious metals in general, but particularly the industrially-useful metals – "continues to decline," says Scotia, meaning silver prices have been rising faster than gold.

US Treasury bonds meanwhile bounced today from Monday's sell-of, pushing the yield offered by 10-year notes back below yesterday's 10-month highs around 4.00%.

Crude oil held near new 18-month highs above $87 per barrel, while copper traded in London caught up with Friday's stronger-than-expected US jobs data by hitting a 20-month high.

One third of last month's 162,000 new jobs came thanks to the US Census, due to finish in July.

Today the gold price in Euros broke above €840 an ounce for the first time ever as the single currency fell hard on fresh doubts over the Eurozone's plan for avoiding a Greek default.

Converted into the old German Deutsche Mark, this morning's London AM Gold Fix was almost 15% above the pre-Euro peak of DM 46,530 per kilo, reached on 21st Jan. 1980.

Thursday this week will bring interest-rate decisions from the European Central Bank as well as the Bank of England. Neither is expected to make any change to their record-low interest rates.

Today the Labour government in London called a UK general election for May 6th.

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