Best of the Week
Most Popular
1. Stock Markets and the History Chart of the End of the World (With Presidential Cycles) - 28th Aug 20
2.Google, Apple, Amazon, Facebook... AI Tech Stocks Buying Levels and Valuations Q3 2020 - 31st Aug 20
3.The Inflation Mega-trend is Going Hyper! - 11th Sep 20
4.Is this the End of Capitalism? - 13th Sep 20
5.What's Driving Gold, Silver and What's Next? - 3rd Sep 20
6.QE4EVER! - 9th Sep 20
7.Gold Price Trend Forecast Analysis - Part1 - 7th Sep 20
8.The Fed May “Cause” The Next Stock Market Crash - 3rd Sep 20
9.Bitcoin Price Crash - You Will be Suprised What Happens Next - 7th Sep 20
10.NVIDIA Stock Price Soars on RTX 3000 Cornering the GPU Market for next 2 years! - 3rd Sep 20
Last 7 days
Stock Market Minor Correction Due - 13th Apr 21
How to Feed Budgies Cucumbers - Best Vegetables Feeding for the First Time, Parakeet Care UK - 13th Apr 21
Biggest Inflation Threat in 40 Years Looms over Markets - 13th Apr 21
How to Get Rich with the Pareto Distribution - Tesco Example - 13th Apr 21
Litecoin and Bitcoin-Which Is Better? - 13th Apr 21
The Major Advantages Of Getting Your PhD Online - 12th Apr 21
Covid-19 Pandemic Current State for UK, US, Europe, Brazil Vaccinations vs Lockdown's Third Wave - 12th Apr 21
Why These Stock Market Indicators Should Grab Your Full Attention - 12th Apr 21
Rising Debt Means a Weaker US Dollar - 12th Apr 21
Another Gold Stocks Upleg - 12th Apr 21
AMD The ZEN Tech Stock - 12th Apr 21
Overclockers UK Build Quality - Why Glue Fan to CPU Heat sink Instead of Using Supplied Clips? - 12th Apr 21 -
What are the Key Capabilities You Should Look for in Fleet Management Software? - 12th Apr 21
What Is Bitcoin Gold? - 12th Apr 21
UK Covd-19 FREE Lateral Flow Self Testing Kits How Use for the First Time at Home - 10th Apr 21
NVIDIA Stock ARMED and Dangeorus! - 10th Apr 21
The History of Bitcoin Hard Forks - 10th Apr 21
Gold Mining Stocks: A House Built on Shaky Ground - 9th Apr 21
Stock Market On the Verge of a Pullback - 9th Apr 21
What Is Bitcoin Unlimited? - 9th Apr 21
Most Money Managers Gamble With Your Money - 9th Apr 21
Top 5 Evolving Trends For Mobile Casinos - 9th Apr 21
Top 5 AI Tech Stocks Investing 2021 Analysis - 8th Apr 21
Dow Stock Market Trend Forecast 2021 - Crash or Continuing Bull Run? - 8th Apr 21
Don’t Be Fooled by the Stock Market Rally - 8th Apr 21
Gold and Latin: Twin Pillars of Western Rejuvenation - 8th Apr 21
Stronger US Dollar Reacts To Global Market Concerns – Which ETFs Will Benefit? Part II - 8th Apr 21
You're invited: Spot the Next BIG Move in Oil, Gas, Energy ETFs - 8th Apr 21
Ladies and Gentlemen, Mr US Dollar is Back - 8th Apr 21
Stock Market New S&P 500 Highs or Metals Rising? - 8th Apr 21
Microsoft AI Azure Cloud Computing Driving Tech Giant Profits - 7th Apr 21
Amazon Tech Stock PRIMEDAY SALE- 7th Apr 21
The US has Metals Problem - Lithium, Graphite, Copper, Nickel Supplies - 7th Apr 21
Yes, the Fed Will Cover Biden’s $4 Trillion Deficit - 7th Apr 21
S&P 500 Fireworks and Gold Going Stronger - 7th Apr 21
Stock Market Perceived Vs. Actual Risks: The Key To Success - 7th Apr 21
Investing in Google Deep Mind AI 2021 (Alphabet) - 6th Apr 21
Which ETFs Will Benefit As A Stronger US Dollar Reacts To Global Market Concerns - 6th Apr 21
Staying Out of the Red: Financial Tips for Kent Homeowners - 6th Apr 21
Stock Market Pushing Higher - 6th Apr 21
Inflation Fears Rise on Biden’s $3.9 TRILLION in Deficit Spending - 6th Apr 21
Editing and Rendering Videos Whilst Background Crypto Mining Bitcoins with NiceHash, Davinci Resolve - 5th Apr 21
Why the Financial Gurus Are WRONG About Gold - 5th Apr 21
Will Biden’s Infrastructure Plan Rebuild Gold? - 5th Apr 21
Stocks All Time Highs and Gold Double Bottom - 5th Apr 21
All Tech Stocks Revolve Around This Disruptor - 5th Apr 21
Silver $100 Price Ahead - 4th Apr 21
Is Astra Zeneca Vaccine Safe? Risk of Blood Clots and What Side Effects During 8 Days After Jab - 4th Apr 21
Are Premium Bonds A Good Investment in 2021 vs Savings, AI Stocks and Housing Alternatives - 4th Apr 21
Penny Stocks Hit $2 Trillion - The Real Story Behind This "Road to Riches" Scheme - 4th Apr 21
Should Stock Markets Fear Inflation or Deflation? - 4th Apr 21
Dow Stock Market Trend Forecast 2021 - 3rd Apr 21
Gold Price Just Can’t Seem to Breakout - 3rd Apr 21
Stocks, Gold and the Troubling Yields - 3rd Apr 21
What can you buy with cryptocurrencies?- 3rd Apr 21
What a Long and Not so Strange Trip it’s Been for the Gold Mining Stocks - 2nd Apr 21
WD My Book DUO 28tb Unboxing - What Drives Inside the Enclosure, Reds or Blues Review - 2nd Apr 21
Markets, Mayhem and Elliott Waves - 2nd Apr 21
Gold And US Dollar Hegemony - 2nd Apr 21
What Biden’s Big Infrastructure Push Means for Silver Price - 2nd Apr 21
Stock Market Support Near $14,358 On Transportation Index Suggests Rally Will Continue - 2nd Apr 21
Crypto Mine Bitcoin With Your Gaming PC - How Much Profit after 3 Weeks with NiceHash, RTX 3080 GPU - 2nd Apr 21
UK Lockdowns Ending As Europe Continues to Die, Sweet Child O' Mine 2021 Post Pandemic Hope - 2nd Apr 21
A Climbing USDX Means Gold Investors Should Care - 1st Apr 21
How To Spot Market Boom and Bust Cycles - 1st Apr 21
What Could Slay the Stock & Gold Bulls - 1st Apr 21
Precious Metals Mining Stocks Setting Up For A Breakout Rally – Wait For Confirmation - 1st Apr 21
Fed: “We’re Not Going to Take This Punchbowl Away” - 1st Apr 21
Mining Bitcoin On My Desktop PC For 3 Weeks - How Much Crypto Profit Using RTX 3080 on NiceHash - 31st Mar 21
INFLATION - Wage Slaves vs Gold Owners - 31st Mar 21
Why It‘s Reasonable to Be Bullish Stocks and Gold - 31st Mar 21
How To Be Eligible For An E-Transfer Payday Loan? - 31st Mar 21
eXcentral Review – Trade CFDs with a Customer-Centric Broker - 31st Mar 21

Market Oracle FREE Newsletter

FIRST ACCESS to Nadeem Walayat’s Analysis and Trend Forecasts

February Sees Gold up 6% and Silver up 19% on Inflation and Escalating Geopolitical Risk

Commodities / Gold and Silver 2011 Feb 28, 2011 - 06:54 AM GMT

By: GoldCore

Commodities

Best Financial Markets Analysis ArticleThe paper-driven sell off in the gold market seen in January has been trumped by continuing robust physical demand in January and February. This has resulted in gold rising nearly 6% in February and silver’s strong industrial and investment demand leading to a 19% rise to new nominal 30-year highs.


Gold in USD – 6-Month (Daily) and 150-Day Moving Average

Political, and more importantly socioeconomic, revolutions in the Middle East and North Africa are leading to a degree of geopolitical instability and risk not seen in many years. This is leading to concerns about oil supplies from the region and hence the 14% jump in US crude oil just last week and deepening inflation concerns.

Hopes that the feudal Saudi regime will contain the situation by increasing production and exporting more oil are misplaced as the Saudis are already producing oil at maximum capacity and indeed are likely to have been overstating their oil reserves for some years, possibly considerably.

Ireland Government Bonds 10-Year – 1 Year (Daily)

With all eyes on the Middle East and North Africa, there has been less focus on the continuing European sovereign debt crisis. However, the crisis continues and recent days and weeks have seen government bonds in Greece and Ireland again come under pressure.

The yield on Greek bonds (10-year) have risen to over 11.6% in recent days and the yield on Ireland’s 10-year reached a new record high of 9.40% this morning after the Irish electorate “liquidated” the Fianna Fail/Green government over the weekend. While the new government is likely to be a centrist Fine Gael and Labour one, there has been a swing to the left with Sinn Fein, the Workers Party and many left leaning independents elected.

The majority of Irish people are seeking that the massive debts of the Irish and European banking systems, incurred against them, be restructured or defaulted. Therefore, the new government will be under pressure to negotiate a fairer, more equitable settlement with the European Commission and the ECB with possible ramifications for the many European banks who lent irresponsibly to Irish banks.

US Dollar Index – 10-Year (Weekly)

Political and economic instability in Europe is set to continue and while the Irish used the ballot box, citizens in some EU countries may not be as peaceful or passive. While the euro has bounced against the beleaguered US dollar recently (the dollar looks very vulnerable to breaking down technically (see chart above), gold above EUR 1,000/oz (€1,020/oz this morning) is a sign that the euro’s troubles are far from over and further euro weakness in the coming months will see gold rise above the EUR 1,072/oz high seen at the end of 2010 (December 28th).

The move by the popular Egyptian Front for Reclaiming the People’s Wealth to ban the export of gold in order to preserve the wealth of the impoverished Egyptian people is a prudent one. The move may be emulated in other countries in the coming months leading to a further decline in scrap supply from emerging markets.

Conversely, mooted proposals by the Vietnamese Central Bank to ban “gold bullion trading” (see news below) are somewhat bizarre. If true this would be a very important development as the Vietnamese are some of the largest buyers of gold bullion in the world. It is unclear whether the proposed ban is simply to prevent “trading” or speculative short term buying and selling, or actually a move to ban the buying of gold bullion ingots and jewellery by Vietnamese households. If it is the latter, it will be unworkable as buying will simply move to the black market or Vietnamese will buy from overseas from bullion dealers.

Gold
Gold is trading at $1,410.50/oz, €1,020.11/oz and £868.59/oz.

Silver
Silver is trading at $33.43/oz, €24.18/oz and £20.59/oz.

Platinum Group Metals
Platinum is trading at $1,803.50/oz, palladium at $787.00/oz and rhodium at $2,350/oz.

News
(Al-Masry Al-Youm) -- Egypt bans exporting gold in effort to curb illegal wealth transfers
The Minister of Trade and Industry Samir Sayyad banned the export of gold in all its forms from Sunday evening.

The minister said in a press statement that the ban will remain in effect from 27 February to 30 June, explaining that it comes during a time of “exceptional circumstances” and is necessary “to preserve the wealth of the country until the current situation stabilizes.”

Since the start of the 25 January uprising, fears have risen that individuals suspected of corruption or wanted for investigation have been smuggling money abroad in the form of gold.

Mohamed Mahsoub, secretary-general of the popular Egyptian Front for Reclaiming the People’s Wealth, said early last week that the group has documents in its possession proving that certain former officials had transferred large amounts of money to foreign banks, where they had also deposited quantities of gold and platinum ingots.

He also said that one former Egyptian official had transferred some US$620 million from Barclay's bank in England to UBS bank in Switzerland and that the Egyptian Attorney General had asked Egypt's foreign ministry to monitor foreign bank accounts belonging to ousted president Hosni Mubarak and his immediate family.

Egypt's Illicit Gains Authority previously requested that the relevant legal bodies investigate wealth accumulated by former government ministers, National Democratic Party officials, and former chief editors of state-run newspapers.

(Al-Masry Al-Youm) -- Former Egypt officials transferred Gold and Platinum Bars to Western Banks
Mohamed Mahsoub, secretary-general of the popular "Egyptian Front for Reclaiming the People’s Wealth," said the group had documents in its possession proving that certain former Egyptian officials had transferred large amounts of money to foreign banks, where they had also deposited large numbers of gold and platinum ingots.

“We plan to submit these documents to the attorney-general and the prime minister,” Mahsoub said.

He also said that one former Egyptian official had transferred some US$620 million from Barclay's Bank in England to UBS Bank in Switzerland.

(Bloomberg) -- Bullish Gold Bets Rebound in February as Mideast Tensions Mount
Hedge funds boosted their bullish bets on gold to the highest since December, when the precious metal was headed to a record price, as tensions in the Middle East spurred investor demand for a haven.

Managed-money funds held net-long positions, or wagers on rising prices, totaling 182,739 futures and options contracts on the Comex as of Feb. 22, up 14 percent from a week earlier, U.S. Commodity Futures Trading Commission data showed last week. Holdings rose for a third straight week and are the highest since Dec. 7, the day gold reached a record $1,432.50 an ounce.

The price has rallied for five straight weeks as pro- democracy uprisings spread from the Middle East to North Africa. Gold is rebounding after a plunge in January that was the biggest in more than a year. Before then, the precious metal had rallied every year for the past decade.

“Gold has found support and buyers have been coming in in the past few weeks,” said Frank Lesh, a trader at FuturePath Trading LLC in Chicago. “All the factors driving the price of gold higher are still there -- political instability, currency volatility and inflation. People are following through with their intentions after the dip in January.”

Gold has climbed 5.6 percent this month, after a 6.1 percent decline in January prompted by an investor shift into equities. Prices are up 27 percent in the past year.

Managed-money positions include hedge funds, commodity- trading advisers and commodity pools. Analysts and investors follow changes in speculator positions because such transactions may reflect an expectation of a shift in prices.

(Bloomberg) -- Rising Gold Output Keeps Australia in No. 2 Spot, Surbiton Says
Australia kept its position as the world’s second-largest producer of gold with a 17 percent increase in output of the precious metal last year, a research group said.

Production rose 38 metric tons to 266 tons in 2010 from a year earlier, Sandra Close, a director of Melbourne-based Surbiton Associates Pty, said in an e-mailed statement.

Gold is trading near record highs as investors seek to protect their wealth against accelerating inflation and intensifying violence in the Middle East. Prices have risen for 10 straight years to reach a record $1,432.50 an ounce on Dec. 7 on the Comex in New York. Gold’s role as an inflation hedge will grow as consumer prices increase worldwide, Credit Suisse AG analyst Stefan Graber said Feb. 22.

China was No. 1 with reported production of 341 tons and the U.S. would rank No. 3 with an output of about 240 tons, Close said.

Australian output gained 12 percent to 70 tons in the fourth quarter, Surbiton said.

Newmont Mining Corp.’s Boddington mine, southeast of Perth, was Australia’s largest single producer during the quarter with 206,000 ounces. The Superpit, 550 kilometers (342 miles) east of Perth and a joint venture of Newmont and Barrick Gold Corp., remained Australia’s largest producer for the year with 788,000 ounces, Surbiton said.

(Bloomberg) -- Goldman ‘Neutral’ on Commodities in the Near Term on Unrest
Goldman Sachs Group Inc. is staying “neutral” on commodities in the near term as the unrest in the Middle East and Africa has raised concerns that global growth may slow.

The bank reiterated an “overweight” recommendation on commodities for the longer term, analysts including Jeffrey Currie wrote in a report. Goldman pared its 12-month forecast for returns on the S&P GSCI Enhanced Commodity Index to 14.3 percent, from 18.6 percent previously.

Commodities last week capped their best weekly performance in almost three months after crude oil jumped 14 percent on concern that the turmoil, which began in Egypt and has cut output in Libya, may spread to other parts of the Middle East. The Enhanced Commodity Index gained 3.9 percent last week, the most since the week to Dec. 3.

“Once the current civil unrests settle down and the contagion risks subside, we expect that higher confidence in global economic growth will once again pave the way for cyclical commodities performance to resume,” the analysts wrote in the Feb. 25 report.

(Bloomberg) -- Vietnam Dong Strengthens at Gold Shops as Reserves Set to Rise
Vietnam’s dong strengthened against the dollar at money changers on speculation foreign-exchange reserves will rise after Prime Minister Nguyen Tan Dung ordered state-owned companies not to “hoard” the greenback.

“Sentiment improved on the foreign-exchange market on expectations reserves will increase once companies sell their dollars to the state bank,” Marc Djandji, the Ho Chi Minh City- based head of research at Viet Capital Securities, wrote in a report today.

The dong advanced in the unofficial market, trading between 21,900 and 21,960 as of 3 p.m. at gold shops in Hanoi, compared with between 21,960 and 22,080 on Feb. 25, according to an information service run by state-owned Vietnam Posts & Telecommunications.

The official rate for the currency dropped 0.04 percent to 20,878, taking losses for the month to 6.6 percent, according to prices from banks compiled by Bloomberg.

“How can you hoard U.S. dollars when we are in this difficult situation?” Dung said at a meeting with ministries in Hanoi on Feb. 24.

The State Bank of Vietnam set the daily reference rate at 20,673, compared with 20,683 on Feb. 25, according to its website. The currency is allowed to trade up to 1 percent on either side of that rate.

The yield on the benchmark five-year bond fell four basis points to 11.55 percent, according to a daily fixing from banks compiled by Bloomberg. A basis point is 0.01 percentage point.

(Dow Jones)-- Vietnam Central Bank Proposes Banning Gold Bullion Trading – Report
Vietnam's central bank is proposing that the government issue regulations to ban the trade of gold bullion from the second quarter of this year, state media reported Monday, citing the State Bank of Vietnam.

"The State Bank of Vietnam in the second quarter will request the government issue a decree on management of gold trading, aiming to control imports and exports of gold and to ban the trading of gold bullion in the free market," the state-run Vietnam News Agency said.

"Trading of gold bullion is only seen in Vietnam but not in other countries," it said.

"It is bad for the economy because (the country) has to import gold, which causes trade deficits."

The elimination of gold bullion trading is "necessary and timely," as the government is rolling out measures to tame inflation and stabilize macroeconomic conditions, it said.

(Bloomberg) -- China Gold Imports Topped 300 Tons Last Year, PBOC’s Yi Says
China imported more than 300 metric tons of gold last year, People’s Bank of China Vice Governor Yi Gang said today in Beijing.

(Financial Times)-- Go for Gold: It is Far Ahead of Electronic Money
Mostly, when you buy insurance, you hope it won’t ever turn out to be necessary.

You pay annual premiums for your car insurance. But that doesn’t mean you secretly hope someone will knock you off the M25. You pay a fortune to insure your house. But that doesn’t mean you want it to be burnt to the ground during your summer holidays (mostly).

The same goes for gold. When I started buying it back in 2002 or so, I did so largely because the supply and demand balance seemed out of whack. But as the decade wore on, I began to see my holdings much more as an insurance – against pretty much all the things that have always gone wrong in the past and that will almost definitely do so at some point in the future. (For this and other important articles see the Commentary section on our website today).

GOLDNOMICS


'GoldNomics' can be viewed by clicking on the image above or on our YouTube channel:
www.youtube.com/goldcorelimited

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