Best of the Week
Most Popular
1. The Trump Stock Market Trap May Be Triggered - Barry_M_Ferguson
2.Why are Central Banks Buying Gold and Dumping Dollars? - Richard_Mills
3.US China War - Thucydides Trap and gold - Richard_Mills
4.Gold Price Trend Forcast to End September 2019 - Nadeem_Walayat
5.Money Saving Kids Gardening Growing Giant Sunflowers Summer Fun - Anika_Walayat
6.US Dollar Breakdown Begins, Gold Price to Bolt Higher - Jim_Willie_CB
7.INTEL (INTC) Stock Investing to Profit From AI Machine Learning Boom - Nadeem_Walayat
8.Will Google AI Kill Us? Man vs Machine Intelligence - N_Walayat
9.US Prepares for Currency War with China - Richard_Mills
10.Gold Price Epochal Breakout Will Not Be Negated by a Correction - Clive Maund
Last 7 days
If You Don’t Understand Bonds, You Don’t Understand Investing - 25th Aug 19
Gold's Next Move - 25th Aug 19
Fresh Water Crisis Unfolding - 25th Aug 19
Newbie Guide to Currency Pairs in Forex Trading – Review - 25th Aug 19
When A 16-Year-Old Earns $3 Million, You Know It's Not A 'Silly Fad' - 24th Aug 19
The Central Bank Time Machine - 23rd Aug 19
Stock Market August Breakdown Prediction and Analysis - 23rd Aug 19
U.S. To “Drown The World” In Oil - 23rd Aug 19
Modern Monetary Theory Could Destroy America - 23rd Aug 19
Seven Key Words That Explain "Stupidly High" Bond Market Prices - 23rd Aug 19
Is the Fed Too Late Prevent A US Housing Bear Market? - 23rd Aug 19
Manchester Airport FREE Drop Off Area Service at JetParks 1 - Video - 23rd Aug 19
Gold Price Trend Validation - 22nd Aug 19
Economist Lays Out the Next Step to Wonderland for the Fed - 22nd Aug 19
GCSE Exam Results Day Shock! How to Get 9 A*'s Grade 9's in England and Maths - 22nd Aug 19
KEY WEEK FOR US MARKETS, GOLD, AND OIL - Audio Analysis - 22nd Aug 19
USD/JPY, USD/CHF, GBP/USD Currency Pairs to Watch Prior to FOMC Minutes and Jackson Hole - 22nd Aug 19
Fed Too Late To Prevent US Real Estate Market Crash? - 22nd Aug 19
Retail Sector Isn’t Dead. It’s Growing and Pays 6%+ Dividends - 22nd Aug 19
FREE Access EWI's Financial Market Forecasting Service - 22nd Aug 19
Benefits of Acrobits Softphone - 22nd Aug 19
How to Protect Your Site from Bots & Spam? - 21st Aug 19
Fed Too Late To Prevent A US Housing Market Crash? - 21st Aug 19
Gold and the Cracks in the U.S., Japan and Germany’s Economic Data - 21st Aug 19
The Gold Rush of 2019 - 21st Aug 19
How to Play Interest Rates in US Real Estate - 21st Aug 19
Stocks Likely to Breakout Instead of Gold - 21st Aug 19
Top 6 Tips to Attract Followers On SoundCloud - 21st Aug 19
WAYS TO SECURE YOUR FINANCIAL FUTURE - 21st Aug 19
Holiday Nightmares - Your Caravan is Missing! - 21st Aug 19
UK House Building and House Prices Trend Forecast - 20th Aug 19
The Next Stock Market Breakdown And The Setup - 20th Aug 19
5 Ways to Save by Using a Mortgage Broker - 20th Aug 19
Is This Time Different? Predictive Power of the Yield Curve and Gold - 19th Aug 19
New Dawn for the iGaming Industry in the United States - 19th Aug 19
Gold Set to Correct but Internals Remain Bullish - 19th Aug 19
Stock Market Correction Continues - 19th Aug 19
The Number One Gold Stock Of 2019 - 19th Aug 19
The State of the Financial Union - 18th Aug 19
The Nuts and Bolts: Yield Inversion Says Recession is Coming But it May take 24 months - 18th Aug 19
Markets August 19 Turn Date is Tomorrow – Are You Ready? - 18th Aug 19
JOHNSON AND JOHNSON - JNJ for Life Extension Pharma Stocks Investing - 17th Aug 19
Negative Bond Market Yields Tell A Story Of Shifting Economic Stock Market Leadership - 17th Aug 19
Is Stock Market About to Crash? Three Charts That Suggest It’s Possible - 17th Aug 19
It’s Time For Colombia To Dump The Peso - 17th Aug 19
Gold & Silver Stand Strong amid Stock Volatility & Falling Rates - 16th Aug 19
Gold Mining Stocks Q2’19 Fundamentals - 16th Aug 19
Silver, Transports, and Dow Jones Index At Targets – What Direct Next? - 16th Aug 19
When the US Bond Market Bubble Blows Up! - 16th Aug 19
Dark days are closing in on Apple - 16th Aug 19
Precious Metals Gone Wild! Reaching Initial Targets – Now What’s Next - 16th Aug 19
US Government Is Beholden To The Fed; And Vice-Versa - 15th Aug 19
GBP vs USD Forex Pair Swings Into Focus Amid Brexit Chaos - 15th Aug 19
US Negative Interest Rates Go Mainstream - With Some Glaring Omissions - 15th Aug 19
GOLD BULL RUN TREND ANALYSIS - 15th Aug 19
US Stock Market Could Fall 12% to 25% - 15th Aug 19
A Level Exam Results School Live Reaction Shock 2019! - 15th Aug 19
It's Time to Get Serious about Silver - 15th Aug 19
The EagleFX Beginners Guide – Financial Markets - 15th Aug 19

Market Oracle FREE Newsletter

Top AI Stocks Investing to Profit from the Machine Intelligence Mega-trend

Gold New All Time Highs in Euros Likely

Commodities / Gold and Silver 2010 Jul 15, 2010 - 08:45 AM GMT

By: GoldCore

Commodities

Best Financial Markets Analysis ArticleGold continues to consolidate above the $1,200/oz level and traded in a range between $1,207/oz and $1,215/oz overnight in Asia. Gold has risen slightly in European trade as the dollar has come under pressure. The poor retail sales have created concerns about the health of the US consumer and the other poor recent data on jobs and trade and budget deficits may see the dollar come under pressure again. Support for gold is at $1,195/oz and resistance is at $1,217.90/oz.


Gold is currently trading at US$1,213.55/oz. In EUR & GBP terms the metal is at €947.32/oz and £790.66/oz respectively.

Gold in EUR - 3 Month (Daily) - Showing Support (Green line) and Resistance (White line)

After the euro's recent rally, gold in euros fell from the record high (nominal) high of €1,040/oz back to €948/oz. Support can be seen at the €936/oz (green line). A fall below this level of support could lead to a pullback to €900/oz.

However, given the degree of banking system and sovereign debt risk in the eurozone, this seems extremely unlikely. Especially as the risk of a European sovereign default remains high and the possibility of a eurozone member leaving the single currency remains real. This would obviously lead to a new crisis in the eurozone which would see the price of gold in euro terms surge.

Gold In Euros - Monthly (10 Years)

The level of macroeconomic, systemic and monetary risk in Europe and internationally today is far greater than that experienced in the stagflation of the 1970s. Thus, gold performing as it did in the 1970s and rising by more than 25 times in less than 10 years (from $35 in 1971 to over $850/oz in 1980) remains a real possibility.

Gold in euros was trading at less than €300/oz at the dawn of the millennium and given the significant risks mentioned above, not to mention worsening fiscal situations in the UK, the US and most western nations, it seems quite possible that gold could rise to €7,500/oz in the coming years.

This may seem outlandish and overly bullish now, as similar sentiments about gold would have in 1974 when the metal had risen from $35 to $200/oz. Bull markets tend to surprise even the most bullish and arguably the challenges facing the international financial and economic system are more bullish for gold today than they were in the 1970s.

Euro Performance Versus G10 Currencies and Gold - 10 Years

Silver

Goldman Sachs sees silver rising by more than 15% in the next 6 months and has raised its 6 month silver forecast to $21.50/oz.

Silver is currently trading at $18.39/oz, €14.35/oz and £11.97/oz.

Platinum Group Metals

Platinum is currently trading at $1,524.00/oz, palladium is at $466/oz and rhodium is at $2,275/oz.

News

(Financial Times) - Lex: Silver
Sail on, silver girl. The white metal may not have quite the fabled haven allure of gold, but its recent rise has tracked the yellow metal's surge, rising to about $18 an ounce. Like gold, silver is being propelled by demand from exchange traded funds as investors dump eurozone sovereign debt and bank equity. That is in marked contrast to silver's sell-off in 2008, when investment demand failed to halt its slide with the downturn to below $15 an ounce.
Investment interest is on top of a revival in industrial demand. Silver is used in mobile phones; in medical applications, for its anti-bacterial properties; and by Tour de France cyclists, in their high-tech clothing. Then there is jewellery.

(Bloomberg) - Goldman Sachs Group Inc. raised its six-month gold forecast to $1,290 an ounce from $1,275 and its 12-month estimate to $1,355 from $1,335. The new forecasts were made in a report dated today and the previous estimates were from a note dated June 22. The six-month silver forecast increased to $21.50 an ounce from $21.30.

(Bloomberg) - Silver held in ETF Securities Ltd.'s European and Australian exchange-traded products added 0.1 percent to a record 28.534 million ounces yesterday, according to the company's website. Goldman Raises 6 Month Silver Forecast to $21.50/oz.

(FT) - Cocoa soars on strong demand data
Cocoa prices rose above £2,700 a tonne on Wednesday for the first time since 1977 as better-than-expected data on demand gave an already tight market fresh impetus.

A number of European cocoa groups have alleged that cocoa prices are being distorted. In a letter to NYSE Liffe earlier this month, 16 cocoa companies and trade associations complained that "a manipulation of the contract" was "bringing the London market into disrepute". The Liffe July cocoa contract, which expires on Thursday, jumped 4.8 per cent to a peak of £2,725 a tonne, its highest since September 1977. The second-front month contract, usually regarded as the industry benchmark, was pulled 2.8 per cent higher to £2,465, its own 33-year peak. In New York, ICE September cocoa rose 3.3 per cent to $3,145 a tonne.

This update can be found on the GoldCore blog here.

Mark O'Byrne
Director

IRL
63
FITZWILLIAM SQUARE
DUBLIN 2

E info@goldcore.com

UK
NO. 1 CORNHILL
LONDON 2
EC3V 3ND

IRL +353 (0)1 632 5010
UK +44 (0)203 086 9200
US +1 (302)635 1160

W www.goldcore.com

WINNERS MoneyMate and Investor Magazine Financial Analysts 2006

Disclaimer: The information in this document has been obtained from sources, which we believe to be reliable. We cannot guarantee its accuracy or completeness. It does not constitute a solicitation for the purchase or sale of any investment. Any person acting on the information contained in this document does so at their own risk. Recommendations in this document may not be suitable for all investors. Individual circumstances should be considered before a decision to invest is taken. Investors should note the following: Past experience is not necessarily a guide to future performance. The value of investments may fall or rise against investors' interests. Income levels from investments may fluctuate. Changes in exchange rates may have an adverse effect on the value of, or income from, investments denominated in foreign currencies. GoldCore Limited, trading as GoldCore is a Multi-Agency Intermediary regulated by the Irish Financial Regulator.

GoldCore is committed to complying with the requirements of the Data Protection Act. This means that in the provision of our services, appropriate personal information is processed and kept securely. It also means that we will never sell your details to a third party. The information you provide will remain confidential and may be used for the provision of related services. Such information may be disclosed in confidence to agents or service providers, regulatory bodies and group companies. You have the right to ask for a copy of certain information held by us in our records in return for payment of a small fee. You also have the right to require us to correct any inaccuracies in your information. The details you are being asked to supply may be used to provide you with information about other products and services either from GoldCore or other group companies or to provide services which any member of the group has arranged for you with a third party. If you do not wish to receive such contact, please write to the Marketing Manager GoldCore, 63 Fitzwilliam Square, Dublin 2 marking the envelope 'data protection'

GoldCore Archive

© 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