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
US Coronavirus Trend Trajectory Forecast Current State - 7th Apr 20
Boris Johnson Fighting for his Life In Intensive Care - UK Coronavirus Crisis - 7th Apr 20
Precious Metals Are About To Reset Like In 2008 – Gold Bugs, Buckle Up! - 7th Apr 20
Crude Oil's 2020 Crash: See What Helped (Some) Traders Pivot Just in Time - 7th Apr 20
Was the Fed Just Nationalized? - 7th Apr 20
Gold & Silver Mines Closed as Physical Silver Becomes “Most Undervalued Asset” - 7th Apr 20
US Coronavirus Blacktop Politics - 7th Apr 20
Coronavirus is America's "Pearl Harbour" Moment, There Will be a Reckoning With China - 6th Apr 20
Coronavirus Crisis Exposes Consequences of Fed Policy: Americans Have No Savings - 6th Apr 20
The Stock Market Is Not a Magic Money Machine - 6th Apr 20
Gold Stocks Crash, V-Bounce! - 6th Apr 20
How Can Writing Business Essay Help You In Business Analytics Skills - 6th Apr 20
PAYPAL WARNING - Your Stimulus Funds Are at Risk of Being Frozen for 6 Months! - 5th Apr 20
Stocks Hanging By the Fingernails? - 5th Apr 20
US Federal Budget Deficits: To $30 Trillion and Beyond - 5th Apr 20
The Lucrative Profitability Of A Move To Negative Interest Rates - Pandemic Edition - 5th Apr 20
Visa Denials: How to avoid it and what to do if your Visa is denied? - 5th Apr 20 - Uday Tank
WARNING PAYPAL Making a Grab for US $1200 Stimulus Payments - 4th Apr 20
US COVID-19 Death Toll Higher Than China’s Now. Will Gold Rally? - 4th Apr 20
Concerned That Asia Could Blow A Hole In Future Economic Recovery - 4th Apr 20
Bracing for Europe’s Coronavirus Contractionand Debt Crisis - 4th Apr 20
Stocks: When Grass Looks Greener on the Other Side of the ... Pond - 3rd Apr 20
How the C-Factor Could Decimate 2020 Global Gold and Silver Production - 3rd Apr 20
US Between Scylla and Charybdis Covid-19 - 3rd Apr 20
Covid19 What's Your Risk of Death Analysis by Age, Gender, Comorbidities and BMI - 3rd Apr 20
US Coronavirus Infections & Deaths Trend Trajectory - How Bad Will it Get? - 2nd Apr 20
Silver Looks Bearish Short to Medium Term - 2nd Apr 20
Mickey Fulp: 'Never Let a Good Crisis Go to Waste' - 2nd Apr 20
Stock Market Selloff Structure Explained – Fibonacci On Deck - 2nd Apr 20
COVID-19 FINANCIAL LOCKDOWN: Can PAYPAL Be Trusted to Handle US $1200 Stimulus Payments? - 2nd Apr 20
Day in the Life of Coronavirus LOCKDOWN - Sheffield, UK - 2nd Apr 20
UK Coronavirus Infections and Deaths Trend Trajectory - Deviation Against Forecast - 1st Apr 20
Huge Unemployment Is Coming. Will It Push Gold Prices Up? - 1st Apr 20
Gold Powerful 2008 Lessons That Apply Today - 1st Apr 20
US Coronavirus Infections and Deaths Projections Trend Forecast - Video - 1st Apr 20
From Global Virus Acceleration to Global Debt Explosion - 1st Apr 20
UK Supermarkets Coronavirus Panic Buying Before Lock Down - Tesco Empty Shelves - 1st Apr 20
Gold From a Failed Breakout to a Failed Breakdown - 1st Apr 20
P FOR PANDEMIC - 1st Apr 20
The Past Stock Market Week Was More Important Than You May Understand - 31st Mar 20
Coronavirus - No, You Do Not Hear the Fat Lady Warming Up - 31st Mar 20
Life, Religions, Business, Globalization & Information Technology In The Post-Corona Pandemics Age - 31st Mar 20
Three Charts Every Stock Market Trader and Investor Must See - 31st Mar 20
Coronavirus Stocks Bear Market Trend Forecast - Video - 31st Mar 20
Coronavirus Dow Stocks Bear Market Into End April 2020 Trend Forecast - 31st Mar 20
Is it better to have a loan or credit card debt when applying for a mortgage? - 31st Mar 20
US and UK Coronavirus Trend Trajectories vs Bear Market and AI Stocks Sector - 30th Mar 20
Are Gold and Silver Mirroring 1999 to 2011 Again? - 30th Mar 20
Stock Market Next Cycle Low 7th April - 30th Mar 20
United States Coronavirus Infections and Deaths Trend Forecasts Into End April 2020 - 29th Mar 20
Some Positives in a Virus Wracked World - 29th Mar 20
Expert Tips to Save on Your Business’s Office Supply Purchases - 29th Mar 20
An Investment in Life - 29th Mar 20
Sheffield Coronavirus Pandemic Infections and Deaths Forecast - 29th Mar 20

Market Oracle FREE Newsletter

Coronavirus-stocks-bear-market-2020-analysis

Gold Hits 3-Month Low as Bloomberg Users Call Gold "A Bubble"

Commodities / Gold and Silver 2011 Jan 25, 2011 - 09:50 AM GMT

By: Adrian_Ash

Commodities

THE PRICE OF PHYSICAL gold in wholesale bars fell to new multi-month lows against all major currencies on Tuesday morning, dropping to $1325 per ounce as Asian speculators hit what one Hong Kong dealer called "capitulation and panic".


Currently 5.9% lower from the last day of 2010, the gold price in Dollars has suffered equal or sharper 3-week losses in 17 of the last 55 months.

"Recent positive sentiment regarding Eurozone peripheries [has] weighed on precious metals prices and discouraged safe-haven buyers," reckons KBC Bank in a note.

The Eurozone's new "stabilization fund" today drew €43 billion of demand for just €5bn-worth of bonds, issued to help fund Ireland's bail-out.

Several fixed-income analysts cited strong bids from Asian central-bank and sovereign-wealth fund managers. A new issue of Spanish government debt also found good demand, with the interest-rate charged by investors sliding from 1.8% at the last auction to 1.0% on 3-month bills.

Versus a rising Dollar, Brent crude oil meantime lost 1.2% in London trade, while copper prices dropped 2.5% and Silver Bullion lost 5.0% from Monday's high to trade at an 8-week low of $26.60 per ounce.

Tokyo equities rose after the Bank of Japan held interest rates below 0.1%, but other Asian stock markets fell and European shares also ticked lower.

"The economy will probably emerge from its slump soon and return to a moderate recovery path," said Bank of Japan governor Masaaki Shirakawa at his monthly press conference on Tuesday morning.

Pressing ahead with another $60 billion-worth of "quantitative easing" asset purchases, the Bank of Japan has now held its key lending rate at or below 0.50% since March 2001.

Measured in Japanese Yen, annual economic output has shrunk by more than 4% in the last 10 years.

New UK data today showed the British economy shrinking by 0.5% in the last 3 months of 2010, defying analyst forecasts of 0.5% growth.

The Pound slumped 2.5¢ on the news, reversing the last two weeks' gains to hit $1.5750.

Gold priced in Sterling rose from a fresh 3-month low to trade above £842 per ounce.

The gold price in Euros continued to fall, in contrast, touching new 12-week lows beneath €31,250 per kilo.

"Gold is in a bubble" reckon more than half the 1,000 Bloomberg data and news-feed terminal users responding to the news-wire's latest quarterly survey.

Nearly twice-as-many respondents say they will cut gold positions by July as say they will increase them. The SPDR gold ETF – the world's largest exchange-traded gold trust – yesterday shed 10 of the 21 tonnes it regained on Friday, slipping back to 1260 tonnes of gold bullion, held at HSBC Bank to back the value of its shares.

All told, the volume of gold investment made through formal, regulated exchanges shrank by 1.3% in the week-to-last-Tuesday, says London's VM Group in its latest Precious Metals Weekly for ABN Amro Bank.

"The decline was led" by a near-7% drop in the net bullish position held by [institutional] Large Speculators," says VM, "which hit its lowest since July 2009."

In silver, in contrast, Large Speculators such as hedge funds and other professional investors have actually grown their net bullishness in the futures market. But that's been "more than offset...by a large decline" in Small Speculator positions held by private individuals.

Meantime in India – the world's No.1 physical gold-consumer market – "Some suppliers are now charging premiums of $2 [per ounce above the London benchmark] as there is a big fight in getting supplies," a bank dealer in Mumbai told Reuters overnight.

"If we place an order now, we get delivery only in 3-4 days."

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 2011

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