Best of the Week
Most Popular
1. Stock Markets and the History Chart of the End of the World (With Presidential Cycles) - 28th Aug 20
2.Google, Apple, Amazon, Facebook... AI Tech Stocks Buying Levels and Valuations Q3 2020 - 31st Aug 20
3.The Inflation Mega-trend is Going Hyper! - 11th Sep 20
4.Is this the End of Capitalism? - 13th Sep 20
5.What's Driving Gold, Silver and What's Next? - 3rd Sep 20
6.QE4EVER! - 9th Sep 20
7.Gold Price Trend Forecast Analysis - Part1 - 7th Sep 20
8.The Fed May “Cause” The Next Stock Market Crash - 3rd Sep 20
9.Bitcoin Price Crash - You Will be Suprised What Happens Next - 7th Sep 20
10.NVIDIA Stock Price Soars on RTX 3000 Cornering the GPU Market for next 2 years! - 3rd Sep 20
Last 7 days
The Connection Between Stocks and the Economy is not What Most Investors Think - 19th Sep 20
A Virus So Deadly, The Government Has to Test You to See If You Have It - 19th Sep 20
Will Lagarde and Mnuchin Push Gold Higher? - 19th Sep 20
RTX 3080 Mania, Ebay Scalpers Crazy Prices £62,000 Trollers Insane Bids for a £649 GPU! - 19th Sep 20
A Greater Economic Depression For The 21st Century - 19th Sep 20
The United Floor in Stocks - 19th Sep 20
Mobile Gaming Market Trends And The Expected Future Developments - 19th Sep 20
The S&P 500 appears ready to correct, and that is a good thing - 18th Sep 20
It’s Go Time for Gold Price! Next Stop $2,250 - 18th Sep 20
Forget AMD RDNA2 and Buy Nvidia RTX 3080 FE GPU's NOW Before Price - 18th Sep 20
Best Back to School / University Black Face Masks Quick and Easy from Amazon - 18th Sep 20
3 Types of Loans to Buy an Existing Business - 18th Sep 20
How to tell Budgie Gender, Male or Female Sex for Young and Mature Parakeets - 18th Sep 20
Fasten Your Seatbelts Stock Market Make Or Break – Big Trends Ahead - 17th Sep 20
Peak Financialism And Post-Capitalist Economics - 17th Sep 20
Challenges of Working from Home - 17th Sep 20
Sheffield Heading for Coronavirus Lockdown as Covid Deaths Pass 432 - 17th Sep 20
What Does this Valuable Gold Miners Indicator Say Now? - 16th Sep 20
President Trump and Crimes Against Humanity - 16th Sep 20
Slow Economic Recovery from CoronaVirus Unlikely to Impede Strong Demand for Metals - 16th Sep 20
Why the Knives Are Out for Trump’s Fed Critic Judy Shelton - 16th Sep 20
Operation Moonshot: Get Ready for Millions of New COVAIDS Positives in the UK! - 16th Sep 20
Stock Market Approaching Correction Objective - 15th Sep 20
Look at This Big Reminder of Dot.com Stock Market Mania - 15th Sep 20
Three Key Principles for Successful Disruption Investors - 15th Sep 20
Billionaire Hedge Fund Manager Warns of 10% Inflation - 15th Sep 20
Gold Price Reaches $2,000 Amid Dollar Depreciation - 15th Sep 20
GLD, IAU Big Gold ETF Buying MIA - 14th Sep 20
Why Bill Gates Is Betting Millions on Synthetic Biology - 14th Sep 20
Stock Market SPY Expectations For The Rest Of September - 14th Sep 20
Gold Price Gann Angle Update - 14th Sep 20
Stock Market Recovery from the Sharp Correction Goes On - 14th Sep 20
Is this the End of Capitalism? - 13th Sep 20
The Silver Big Prize - 13th Sep 20
U.S. Shares Plunged. Is Gold Next? - 13th Sep 20
Why Are 7,500 Oil Barrels Floating on this London Lake? - 13th Sep 20
Sheffield 432 Covid-19 Deaths, Last City Centre Shop Before Next Lockdown - 13th Sep 20
Biden or Trump Will Keep The Money Spigots Open - 13th Sep 20
Gold And Silver Up, Down, Sideways, Up - 13th Sep 20
Does the Stock Market Really "See" the Future? - 12th Sept 20
Basel III and Gold, Silver and Platinum - 12th Sept 20
Tech Stocks FANG Index Nearing Critical Support – Could Breakout At Any Moment - 12th Sept 20
The Tech Stocks Quantum AI EXPLOSION is Coming! - 12th Sept 20
AMD Zen 3 Ryzen 4000 Questions Answered on Cores, Prices, Benchmarks and Threadripper Launch - 12th Sept 20
The Inflation Mega-trend is Going Hyper! - 11th Sep 20
Gold / Silver Ratio: Slowly I Toined… - 11th Sep 20
Stock Market Correction or Reversal? The Jury Isn't Out! - 11th Sep 20
Crude Oil – The Bearish Outlook Remains - 11th Sep 20
Crude Oil Breaks Lower – Sparking Fears Of Another Sub $30 Price Collapse - 11th Sep 20
Inflation by Fiat - 10th Sep 20
Unemployment Rate Drops. Will It Drag Gold Down? - 10th Sep 20
How Does The Global Economy Recover After This Global Pandemic? - 10th Sep 20
The Best Mobile Casino - 10th Sep 20
QE4EVER! - 9th Sep 20
AMD Ryzen Zen 3 4800x 10 Core 5ghz CPU, Cinebench Benchmark Scores (Est.) - 9th Sep 20
Stock Traders’ Dreams Come True – Big Technical Price Swings Pending on SP500 - 9th Sep 20
Should You Be Concerned About The Stock Market Big Downside Rotation? - 9th Sep 20
Options Traders Keep "Opting" for Even Higher Stock Market Prices - 8th Sep 20
Gold Stocks in Correction Mode - 8th Sep 20
The law of long-term time preference and Gold ownership - 8th Sep 20
Gold Bull Markets: History and Prospects Ahead - 8th Sep 20
Sheffield City Centre Coronavirus Shopping Opera Ahead of Second Covid-19 Peak - 8th Sep 20

Market Oracle FREE Newsletter

How to Get Rich Investing in Stocks by Riding the Electron Wave

Gold "Consolidates" as Greek Bail-Out Nears

Commodities / Gold and Silver 2010 Apr 16, 2010 - 08:01 AM GMT

By: Adrian_Ash

Commodities

Best Financial Markets Analysis ArticleTHE PRICE OF GOLD turned higher from $1152.50 per ounce early in London on Friday, cutting this week's losses to 0.4% for Dollar investors as Asian stock markets closed sharply lower and government bonds rose.

Eurozone finance leaders denied that Greece has formally asked for emergency aid.


US crude oil contracts fell below $85 per barrel.

"[Gold] is in a consolidation phase," says the latest note from bullion bank Scotia Mocatta, predicting it "will resolve higher to $1175.

"Only a drop down below $1145 will shake our bullish outlook."

Implied volatility in Comex gold options has remained low meantime, notes another dealer, meaning "Protection to the downside remains cheap" in the derivatives market.

The Euro currency fell back to $1.3520 on the forex market – undoing the last of Monday's sharp gains to trade unchanged from before last weekend's announcement of a €30 billion Eurozone-IMF loan facility – after the Greek government yesterday invited "consultations" on the matter.

The price of gold in Euros rose to €854 an ounce.

Athens' stock market lost 1%. Other European bourses held flat.

"Looking at the weakness in the Euro, a lot of people are looking for gold to dip before jumping in with buying," said Bernark Sin at the finance division of Swiss refiner MKS to Bloomberg today.

"Gold is down because of the Dollar's strength," agrees Wallace Ng at Fortis bank's Hong Kong office.

"That doesn't mean the trend has changed. The retreat in metals is viewed as a temporary correction."

Silver prices also bounced higher in London trading on Friday, cutting their weekly loss to 10¢ per ounce at $18.42.

The big iShares Silver ETF trust fund reported further sales on Thursday of the bullion held to back its shares, adding 7 million ounces this week to the 10m sold since late Feb.

Silver prices have risen by some 13% over that time.

"Long-term solvency risks remain firmly in place," says Morgan Stanley's chief European economist, Joachim Fels, in a note about Eurozone government debt.

"More broadly, and more worryingly...the [Greek] bail-out and the ECB's softer collateral stance set a bad precedent for other Euro area member states and make it more likely that the Euro area degenerates into a zone of fiscal profligacy, currency weakness and higher inflationary pressures over time."

Following this Feb.'s shock at long-standing "interest-rate swap" deals used by Greece to hide the true extent of its fiscal deficits, the small French town of Saint-Etienne is the latest Eurozone municipality to blame investment bankers for complex, expensive derivatives that are now costing them money.

The city of Milan announced last month that it is suing Deutsche Bank, UBS, J.P.Morgan and Dexia for "misleading" its officers into €1.7 billion ($2.3bn) worth of deals.

The Banca d'Italia reckons that local governments in Italy face €1bn of losses on complex derivative deals.

"It's a joke that we're in markets like this," says Saint-Etienne's finance director, Cedric Grail

"We're playing the Dollar against the Swiss Franc until 2042."

On the supply-side of the precious metals market, meantime, the gold mining earnings season kicked off this week with world No.1 silver producer Fresnillo Plc – the London-listed Mexican miner – reporting a 31% jump in gold output for Jan. to March compared with the first quarter of 2009.

Diversified mining giant Rio Tinto grew its gold output by 12%, the company said, thanks to improved ore grades.

Canadian and US juniors Alamos and Jaguar yesterday reported lower year-on-year output, with cash-costs per ounce rising sharply.

The gold mining earnings season will culminate with the major producers' figures in week-commencing April 26th.

Last year's 6% growth in global gold-mining output came mostly in the first half of the year.

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