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
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
Stock Market Dow Elliott Wave Analysis Forecast - 13th Oct 19
The Most Successful IPOs Have This One Thing in Common - 13th Oct 19
Precious Metals & Stock Market VIX Are Set To Launch Dramatically Higher - 13th Oct 19
Discovery Sport EGR Valve Gasket Problems - Land Rover Dealer Fix - 13th Oct 19
Stock Market US Presidential Cycle - Video - 12th Oct 19
Social Security Is Screwing Millennials - 12th Oct 19
Gold Gifts Traders With Another Rotation Below $1500 - 12th Oct 19
US Dollar Index Trend Analysis - 11th Oct 19
China Golden Week Sales Exceed Expectations - 11th Oct 19
Stock Market Short-term Consolidation Does Not change Secular Bullish Trend - 11th Oct 19
The Allure of Upswings in Silver Mining Stocks - 11th Oct 19
US Housing Market 2018-2019 and 2006-2007: Similarities & Differences - 11th Oct 19
Now Is the Time to Load Up on 5G Stocks - 11th Oct 19
Why the Law Can’t Protect Your Money - 11th Oct 19
Will Miami be the First U.S. Real Estate Bubble to Burst? - 11th Oct 19
How Online Casinos Maximise Profits - 11th Oct 19
3 Tips for Picking Junior Gold Stocks - 10th Oct 19
How Does Inflation Affect Exchange Rates? - 10th Oct 19
This Is the Best Time to Load Up on These 3 Value Stocks - 10th Oct 19
What Makes this Gold Market Rally Different From All Others - 10th Oct 19
Stock Market US Presidential Cycle - 9th Oct 19
The IPO Market Is Nowhere Near a Bubble - 9th Oct 19
US Stock Markets Trade Sideways – Waiting on News/Guidance  - 9th Oct 19
Amazon Selling Fake Hard Drives - 4tb WD Blue - How to Check Your Drive is Genuine  - 9th Oct 19
Whatever Happened to Philippines Debt Slavery?  - 9th Oct 19
Gold in the Negative Real Interest Rates Environment - 9th Oct 19
The Later United States Empire - 9th Oct 19
Gold It’s All About Real Interest Rates Not the US Dollar - 8th Oct 19
A Trump Impeachment Would Cause The Stock Market To Rally - 8th Oct 19
The Benefits of Applying for Online Loans - 8th Oct 19
Is There Life Left In Cannabis - 8th Oct 19
Yield Curve Inversion Current State - 7th Oct 19

Market Oracle FREE Newsletter

Stock Market Trend Forecast Oct - Dec 2019 by Nadeem Walayat

Gold Drops as Japan's Nuclear Panic Hits Global Stock Markets

Commodities / Gold and Silver 2011 Mar 15, 2011 - 08:04 AM GMT

By: Adrian_Ash


THE PRICE OF GOLD fell 3% against a rising US Dollar on Tuesday morning, bouncing from a 4-week low of $1384 per ounce as world stock-market and commodity prices sank on news of radiation leaks from Japan's earthquake-hit nuclear plants.

Tokyo's Nikkei index closed Tuesday down at a 22-month closing low, slumping nearly 11% for the day as officials advised people within 30 miles of the Fukushima Daiichi facility to stay indoors.

Austria was reported to be moving its embassy south-west from Tokyo – which is some 150 miles from the stricken nuclear site – where supermarkets have been stripped bare of food, flashlights and daily necessities.

New York's stock markets opened the day nearly 3% down as Germany's Dax index traded nearly 5% lower and London's FTSE-100 lost 2.6%, dropping to new 2011 lows.

The gold price in Euros, Sterling and Japanese Yen lost 2.0% overnight, falling towards 4-week lows.

"Be it due to margin calls [on other assets] or risk averseness," says one Asian dealer, "the financial markets suffered a meltdown [that] spilled into the metals."

With Japanese car production still shut by the disaster, auto-catalyst metals platinum and palladium fell 2.3% and 3.9% by today's AM Fix in London, hitting fresh 2011 lows after what one Hong Kong trader called "panicky sales" by private investors in the Tokyo market.

Wholesale silver bullion prices fell through last Friday's trough of $34 per ounce to hit a two-week low, down more than 5% from the start of today's Asian trade.

"We saw not only selling of equities, but also panic-selling of gold, silver, platinum and palladium in Japan today," writes James Zhang at Standard Bank.

Brent crude meantime oil lost $4.75 per barrel to $109, leading a 2% drop in the broad commodity markets.

Amid the Japanese earthquake and nuclear shocks, gold investment "has not been acting as much as a safe haven as other safe-havens," notes Matthew Turner at Mitsubishi, "but it's also not been acting as much as a commodity as other commodities."
"It's not unusual for gold to tumble during initial episodes of a severe broad asset sell-off," adds Dr.Edel Tully at UBS, also quoted by Reuters.

Further ahead, "Friday’s disaster in Japan will be negative for economic growth," says Zhang at Standard Bank, and "a slump in growth in the world’s third-largest economy may have a substantial impact on the outlook for global monetary policy.

"It may move monetary tightening into the future. If so, it would be bullish for especially gold."

Major-economy government debt prices jumped as stock and commodity markets sank, driving 10-year US Treasury yields down more than 0.12% to a three-month low of 3.23%.

BNP Paribas analysts note today that Japan is China's top trading partner, accounting for 13% of imports, with hi-tech, plant and machinery dominating.

By Adrian Ash

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 , 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 - 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