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
U-Turn or Perfect Storm? Globalization at Crossroads - 22nd Oct 19
Stock Market Indexes Struggle and TRAN suggests a possible top - 22nd Oct 19
Fake Numbers Fueling the Wage War on Wealth - 22nd Oct 19
A Look at Peak Debt - 22nd Oct 19
The Coming Great Global Debt Reset - 22nd Oct 19
GamStop Became Mandatory - 22nd Oct 19
Learn to Spot Reliable Trading Setups: ANY Market, Any Market Time Frame - 21st Oct 19
How To Secure A Debt Consolidation Loan Even If You Have A Bad Credit Rating - 21st Oct 19
Kids Teepee Tent Fun from Amazon by Lavievert Review - 15% Discount! - 21st Oct 19
Stock Market Stalls: Caution Ahead - 21st Oct 19
Stock Market Crash Setup? - 21st Oct 19
More Stock Market Congestion (Distribution) - 21st Oct 19
Revisiting “Black Monday Stock Market Crash October 19 1987 - 21st Oct 19
Land Rover Discovery Sports Out of Warranty Top Money Saving Tips - 21st Oct 19
Investing lessons from the 1987 Stock Market Crash From Who Beat it - 20th Oct 19
Trade Wars: Facts And Fallacies - 20th Oct 19
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

Market Oracle FREE Newsletter

Stock Market Trend Forecast Oct - Dec 2019 by Nadeem Walayat

Gold Steals Silver's Limelight

Commodities / Gold and Silver 2010 Sep 07, 2010 - 07:17 AM GMT

By: Adrian_Ash

Commodities

Best Financial Markets Analysis ArticleTHE PRICE OF GOLD in wholesale dealing held in a tight range around last week's close as New York re-opened after the Labor Day holiday on Tuesday, trading at $1247 an ounce while European stock markets fell and government bonds rose.

Silver fell almost 2% from Monday's breach of $20 an ounce – a 30-month high previously hit in Nov. 1980.


"Each time a rise in gold hits the headlines, it steals the limelight from silver," says Ashraf Laidi at spread-betting firm CMC Markets, quoted today in the Financial Times.

"Silver has not only followed rallies in gold, but usually outperformed, as can be seen in a fall in the gold/silver ratio – the amount of gold that can be purchased with one ounce of silver."

Yesterday saw the gold/silver ratio fall towards a 12-month low beneath 63 on the London Fixes. Its four-decade average stands at 53 ounces of silver per ounce of gold.

The Euro meantime fell 1.5¢ from 3-week highs to the Dollar early on Tuesday after the Wall Street Journal accused last month's "banking stress tests" of excluding "a significant amount" of government-bond exposure amid the recent Greek deficit crisis.

European finance ministers meeting in Brussels last night agreed "on the need for credible sanctions" against governments that breach the union's debt and deficit limits, EU commissioner Olli Rehn told reporters.

But easing tensions over Greece's deficit have led to "a slight slackening of the dynamism" to fix the system, Germany's Wolfgang Schäuble warned.
 
"Despite concerns over the global economy, precious metals have also come under attack," says Walter de Wet, chief commodities analyst at Standard Bank, this morning.

"[But] while precious metals might be on the back foot for now, lingering uncertainty means the outlook for these metals still looks promising."

"Even though there's some liquidation in the gold ETF, everybody is still bullish," Reuters quotes Ronald Leung of Lee Cheong Gold Dealers in Hong Kong, after New York's SPDR Gold Trust reported a 0.4% drop in its physical holdings.

"There's so much uncertainty in the economy and the [Hindu] festive season is on and we expect to see buying at the lower end.

"I think the next target is the all-time high."

Overall last week, total global gold investment rose by more than 2.1% according to data compiled by London's VM Group consultancy, as a sharp rise in futures and options positions outweighed a slight fall in physically-backed ETF trusts.

In the US Comex gold futures market, "Gross longs in the large speculators' position have gone up by more than 1.5 million ounces [46 tonnes equivalent] in the past three weeks," says VM's weekly report for ABN Amro.

"On a rolling three-week basis, that's the largest advance [in speculative gold futures betting] since the same period ending 22 September 2009...when the gold price was just $1014 an ounce."

Silver investment worldwide last week showed a 6.3% rose on VM's analysis of ETF and futures positions.

Meantime in the stock market on Tuesday, European shares fell nearly 1% after Germany reported an unexpected drop in factory orders for July.

Ahead of Thursday's Bank of England policy meeting, the British Pound fell closer to last week's 1-month lows, buoying the gold price in Sterling above £810 an ounce.

Australian investors looking to buy gold today saw the price hold near A$1370 an ounce – some 11% below the record price of Jan. and May – after the central bank held its lending rate at 4.50%, the highest rate paid on a developed-world currency.

The Bank of Japan also held its key lending rate unchanged on Tuesday, sticking at 0.1% for the 20th month running after weighing a "moderate recovery" against the "possibility that inflation will rise more than expected" due to emerging-economy demand.

Refraining from any new forex-market or money-supply intervention, the BoJ repeated the same vow as the US and UK central banks to "take policy actions in a timely and appropriate manner if judged necessary."

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