Best of the Week
Most Popular
1. Gold vs Cash in a Financial Crisis - Richard_Mills
2.Current Stock Market Rally Similarities To 1999 - Chris_Vermeulen
3.America See You On The Dark Side Of The Moon - Part2 - James_Quinn
4.Stock Market Trend Forecast Outlook for 2020 - Nadeem_Walayat
5.Who Said Stock Market Traders and Investor are Emotional Right Now? - Chris_Vermeulen
6.Gold Upswing and Lessons from Gold Tops - P_Radomski_CFA
7.Economic Tribulation is Coming, and Here is Why - Michael_Pento
8.What to Expect in Our Next Recession/Depression? - Raymond_Matison
9.The Fed Celebrates While Americans Drown in Financial Despair - John_Mauldin
10.Hi-yo Silver Away! - Richard_Mills
Last 7 days
South Korea Coronavirus Outbreak Data Analysis Warning Rate of Infection is Exponential! - 26th Feb 20
Gold Price Long-term Trend Analysis Forecast 2020 - 26th Feb 20
Fake Markets Are on Collision Course with Reality - 26th Feb 20
Microsoft is Crushing the S&P 500, Secret Trait Of Stocks That Soar 1,000%+ - 26th Feb 20
Europe's Best Ski Resorts For The Ultimate Adventure - 26th Feb 20
Samsung Galaxy S20+ vs Galaxy S10+ Which One to Buy? - 26th Feb 20
Gold Is Taking on $1,700 amid Rising Coronavirus Fears - 26th Feb 20
Is This What Falling Through the Floor Looks Like in Stocks? - 26th Feb 20
Gold Minsky Moment Coming - 26th Feb 20
Why Every Student Should Study Economics - 26th Feb 20
Stock Market Correction Over? - 26th Feb 20
US Bond Market Yield Curve Patterns – What To Expect In 2020 - 25th Feb 20
Has Stock Market Waterfall Event Started Or A Buying Opportunity? - 25th Feb 20
Coronavirus IN Sheffield! Royal Hallamshire Hospital treating 2 infected Patients, UK - 25th Feb 20
Dow Short-term Trend Analysis - Coronavirus Trigger a Stocks Bear Market? - 24th Feb 20
Sustained Silver Rally Coming? - 24th Feb 20
Should Investors Worry about Repo Market and Buy Gold? - 24th Feb 20
Are FANG Technology Stocks Setting Up For A Market Crash? - 24th Feb 20
Gold Above $1,600 Amid FOMC Minutes and Coronavirus Impact - 24th Feb 20
CoronaVirus Pandemic Day 76 Trend Forecast Update - Infected 540k, Minus China 1715, Deaths 4920 - 23rd Feb 20 -
Ways to Find Startup Capital - 23rd Feb 20
Stock Market Deviation from Overall Outlook for 2020 - 22nd Feb 20
The Shanghai Composite and Coronavirus: A Revealing Perspective - 22nd Feb 20
Baltic Dry, Copper, Oil, Tech and China Continue Call for Stock Market Crash Soon - 22nd Feb 20
Gold Warning – This is Not a Buying Opportunity - 22nd Feb 20
Is The Technology Sector FANG Stocks Setting Up For A Market Crash? - 22nd Feb 20
Coronavirus China Infection Statistics Analysis, Probability Forecasts 1/2 Million Infected - 21st Feb 20
Is Crude Oil Firmly on the Upswing Now? - 20th Feb 20
What Can Stop the Stocks Bull – Or At Least, Make It Pause? - 20th Feb 20
Trump and Economic News That Drive Gold, Not Just Coronavirus - 20th Feb 20
Coronavirus COVID19 UK Infection Prevention, Boosting Immune Systems, Birmingham, Sheffield - 20th Feb 20
Silver’s Valuable Insights Into the Upcoming PMs Rally - 20th Feb 20
Coronavirus Coming Storm Act Now to Protect Yourselves and Family to Survive COVID-19 Pandemic - 19th Feb 20
Future Silver Prices Will Shock People, and They’ll Kick Themselves for Not Buying Under $20… - 19th Feb 20
What Alexis Kennedy Learned from Launching Cultist Simulator - 19th Feb 20
Stock Market Potential Short-term top - 18th Feb 20
Coronavirus Fourth Turning - No One Gets Out Of Here Alive! - 18th Feb 20
The Stocks Hit Worst From the Coronavirus - 18th Feb 20
Tips on Pest Control: How to Prevent Pests and Rodents - 18th Feb 20
Buying a Custom Built Gaming PC From Overclockers.co.uk - 1. Delivery and Unboxing - 17th Feb 20
BAIDU (BIDU) Illustrates Why You Should NOT Invest in Chinese Stocks - 17th Feb 20
Financial Markets News Report: February 17, 2020 - February 21, 2020 - 17th Feb 20
NVIDIA (NVDA) GPU King For AI Mega-trend Tech Stocks Investing 2020 - 17th Feb 20
Stock Market Bubble - No One Gets Out Of Here Alive! - 17th Feb 20
British Pound GBP Trend Forecast 2020 - 16th Feb 20
SAMSUNG AI Mega-trend Tech Stocks Investing 2020 - 16th Feb 20
Ignore the Polls, the Markets Have Already Told You Who Wins in 2020 - 16th Feb 20
UK Coronavirus COVID-19 Pandemic WARNING! Sheffield, Manchester, Birmingham Outbreaks Probable - 16th Feb 20
iShares Nasdaq Biotechnology ETF IBB AI Mega-trend Tech Stocks Investing 2020 - 15th Feb 20
Gold Stocks Still Stalled - 15th Feb 20
Is The Technology Stocks Sector Setting Up For A Crash? - 15th Feb 20
UK Calm Before Corona Virus Storm - Infections Forecast into End March 2020 - 15th Feb 20

Market Oracle FREE Newsletter

Nadeem Walayat Financial Markets Analysiis and Trend Forecasts

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