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
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
Central Banks Move To Keep The Global Markets Party Rolling – Part III - 14th Aug 19
You Have to Buy Bonds Even When Interest Rates Are Low - 14th Aug 19
Gold Near Term Risk is Increasing - 14th Aug 19
Installment Loans vs Personal Bank Loans - 14th Aug 19
ROCHE - RHHBY Life Extension Pharma Stocks Investing - 14th Aug 19
Gold Bulls Must Love the Hong Kong Protests - 14th Aug 19
Gold, Markets and Invasive Species - 14th Aug 19
Cannabis Stocks With Millennial Appeal - 14th Aug 19
August 19 (Crazy Ivan) Stock Market Event Only A Few Days Away - 13th Aug 19
This is the real move in gold and silver… it’s going to be multiyear - 13th Aug 19
Global Central Banks Kick Can Down The Road Again - 13th Aug 19
US Dollar Finally the Achillles Heel - 13th Aug 19
Financial Success Formula Failure - 13th Aug 19
How to Test Your Car Alternator with a Multimeter - 13th Aug 19
London Under Attack! Victoria Embankment Gardens Statues and Monuments - 13th Aug 19
More Stock Market Weakness Ahead - 12th Aug 19
Global Central Banks Move To Keep The Party Rolling Onward - 12th Aug 19
All Eyes On Copper - 12th Aug 19
History of Yield Curve Inversions and Gold - 12th Aug 19
Precious Metals Soar on Falling Yields, Currency Turmoil - 12th Aug 19
Why GraphQL? The Benefits Explained - 12th Aug 19
Is the Stock Market Making a V-shaped Recovery? - 11th Aug 19
Precious Metals and Stocks VIX Are About To Pull A “Crazy Ivan” - 11th Aug 19
Social Media Civil War - 11th Aug 19
Gold and the Bond Yield Continuum - 11th Aug 19
Traders: Which Markets Should You Trade? - 11th Aug 19
US Corporate Debt Is at Risk of a Flash Crash - 10th Aug 19
EURODOLLAR futures above 2016 highs: FED to cut over 100 bps quickly - 10th Aug 19
Market’s flight-to-safety: Should You Buy Stocks Now? - 10th Aug 19
The Cold, Hard Math Tells Netflix Stock Could Crash 70% - 10th Aug 19
Our Custom Index Charts Suggest Stock Markets Are In For A Wild Ride - 9th Aug 19
Bitcoin Price Triggers Ahead - 9th Aug 19
Walmart Is Coming for Amazon - 9th Aug 19

Market Oracle FREE Newsletter

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

Gold Rises vs. Falling Euro and Stock-Markets

Commodities / Gold and Silver 2010 Nov 29, 2010 - 06:19 AM GMT

By: Adrian_Ash

Commodities

Best Financial Markets Analysis ArticleTHE PRICE OF GOLD slipped against the Dollar but held steady vs. the Euro in London on Monday, reversing an earlier rally as the Euro slipped to a new 9-week low to the Dollar following the weekend's €85 billion rescue package for Ireland, agreed with the International Monetary Fund and European Union.

Irish banking shares rose sharply, but government bonds were little changed on the news, with the yield on Spanish 10-year debt continuing to trade near all-time record highs over comparable German bonds.


European stock markets fell, and silver prices gave back an early 1.8% jump, but crude oil rallied above $84 per barrel.

New data showed a decline in Eurozone industrial confidence, plus a decline in the UK's money supply.

"It is decision time for year-end positioning," writes UBS strategist Edel Tully, but "as Eurozone funding worries are not going to go away, it is against the Euro that gold should be gauged."

"Gold outperformed the industrial metals last week," says Mitsui's London team, "as its safe haven appeal lay in stark contrast to the liquidation on equity bourses over growth concerns."

Global stock markets have lost $2.3 trillion in value this month, Mitsui notes. The Dollar gold price stood unchanged from Oct. 31st at lunchtime today in London, trading just shy of $1360 an ounce.

Versus the Euro, gold stood 6.0% higher for November so far, re-touching early Nov.'s 5-month high above €33,200 per kilo.

"This is not a rescue plan. It is the longest ransom note in history," writes Irish Times' columnist Fintan O'Toole today, calling the near-6% interest rate agreed on the joint IMF-EU loans "viciously extortionate".

"Do what we tell you and you may, in time, get your country back."

Dublin's opposition parties all said they will vote against the government's austerity Budget – a key part of the EU-IMF bailout – on Dec. 7th.

The €85 billion EU-IMF bailout package for Ireland announced last night was roundly condemned by the Opposition parties who are now all likely to vote against the Budget on December 7th.

Fine Gael, Labour and Sinn Féin also attacked the rescue's use of €10 billion from Ireland's €24.5bn National Pension Reserve Fund.

The Fianna Fáil government last night put aside a further €35bn of public money to buoy the Irish banking sector, vowing to nationalize Allied Irish Banks (AIB) by the end of Feb.

"Gold usually shines in a crisis," writes Fortune columnist Colin Barr. "But thanks in large part to changing views of China, the problems swirling in Europe and Korea have barely budged gold prices."

Food-price rises have compounded expectations for tighter monetary policy in China – the world's fastest-growing economy and its No.2 gold consumer – where cash depositors currently get 2% below the rate of inflation in annual interest.

"One reason China is possibly dithering on raising rates is because it wants to discourage hot money inflows into the region," says the FT's Alpha blog, however, "since all they do is cause China to print more domestic money of its own."

The People's Bank of China said today that it spent CNY519 billion in October absorbing inflows, swapping the equivalent of $78bn for foreign currencies held by domestic citizens and business, and issuing Yuan-denominated bonds to try and mop up the extra money thus created.

That was a sharp rise from Sept.'s CNY290bn, and the largest monthly total since April 2008.

Meantime in India, "In October we exceeded the [total] 2009 import levels," says Manikbhai Dolakia, a bullion trader in Munbai's Zaveri Bazaar, speaking to MineWeb about the 624 tonnes of gold bullion officially imported to the world's No.1 gold market between Jan. and last month.

"Consumer demand has been so high and continues to be, despite the high prevailing price of gold."

By Adrian Ash
BullionVault.com

Gold price chart, no delay   |   Buy gold online at live prices

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