Best of the Week
Most Popular
1. US Housing Market House Prices Bull Market Trend Current State - Nadeem_Walayat
2.Gold and Silver End of Week Technical, CoT and Fundamental Status - Gary_Tanashian
3.Stock Market Dow Trend Forecast - April Update - Nadeem_Walayat
4.When Will the Stock Market’s Rally Stop? - Troy_Bombardia
5.Russia and China Intend to Drain the West of Its Gold - MoneyMetals
6.BAIDU (BIDU) - Top 10 Artificial Intelligence Stocks Investing To Profit from AI Mega-trend - Nadeem_Walayat
7.Stop Feeding the Chinese Empire - ‘Belt and Road’ Trojan Horse - Richard_Mills
8.Stock Market US China Trade War Panic! Trend Forecast May 2019 Update - Nadeem_Walayat
9.US China Trade Impasse Threatens US Lithium, Rare Earth Imports - Richard_Mills
10.How to Invest in AI Stocks to Profit from the Machine Intelligence Mega-trend - Nadeem_Walayat
Last 7 days
UK EU Election Results, Brexit Party Victory, Labour and Tory Bloodbath, UKIP and ChangeUK Die - 27th May 19
The Three M's of Hyperinflation : Milosevic, Mugabe, And Maduro - 26th May 19
Global Multi-Market / Asset Charts Review - 26th May 19
An Oil Shock Could Be the Black Swan That Finally Drives Gold Higher - 26th May 19
Brexit Party Forces Theresa May to Resign, Boris Johnson Next Tory Prime Minister? - 26th May 19
IBM - Investing in AI Machine Intelligence Stocks - 25th May 19
Seasonal Dysfunction: Why Generations of Gold and Silver Investors Are Having Such Difficulty - 25th May 19
Employment - The Good and the Bad of Job Automation - 25th May 19
Gold Mining Mid-Tier Stocks Fundamentals - 25th May 19
Buy This Pick-and-Shovel 5G Stock Before It Takes Off - 25th May 19
China Hang Seng Stocks Index Collapses and Commodities - 24th May 19
Costco Corp. (COST): Finding Opportunity in Five Minutes or Less - 24th May 19
How Free Bets Have Impacted the Online Casino Industry - 24th May 19
This Ultimate Formula Will Help You Avoid Dividend Cutting Stocks - 24th May 19
Benefits of a Lottery Online Account - 24th May 19
Technical Analyst: Gold Price Weakness Should Be Short Term - 24th May 19
Silver Price Looking Weaker than Gold - 24th May 19
Nigel Farage's Brexit Party EU Elections Seats Results Forecast - 24th May 19
Powerful Signal from Gold GDX - 24th May 19
Eye Opening Currency Charts – Why Precious Metals Are Falling - 23rd May 19
Netflix Has 175 Days Left to Pull Off a Miracle… or It’s All Over - 23rd May 19
Capitalism Works, Ravenous Capitalism Doesn’t - 23rd May 19
The Euro Is Bidding Its Time: A Reversal at Hand? - 23rd May 19
Gold Demand Rose 7% in Q1 2019. A Launching Pad Higher for Gold? - 23rd May 19
Global Economic Tensions Translate Into Oil Price Volatility - 22nd May 19
The Coming Pension Crisis Is So Big That It’s a Problem for Everyone - 22nd May 19
Crude Oil, Hot Stocks, and Currencies – Markets III - 22nd May 19
The No.1 Energy Stock for 2019 - 22nd May 19
Brexit Party and Lib-Dems Pull Further Away from Labour and Tories in Latest Opinion Polls - 22nd May 19
The Deep State vs Donald Trump - US vs Them Part 2 - 21st May 19
Deep State & Financial Powers Worry about Alternative Currencies - 21st May 19
Gold’s Exciting Boredom - 21st May 19
Trade War Fears Again, Will Stocks Resume the Downtrend? - 21st May 19
Buffett Mistake Costs Him $4.3 Billion This Year—Here’s What Every Investor Can Learn from It - 21st May 19
Dow Stock Market Trend Forecast 2019 May Update - Video - 20th May 19
A Brief History of Financial Entropy - 20th May 19
Gold, MMT, Fiat Money Inflation In France - 20th May 19
WAR - Us versus Them Narrative - 20th May 19
US - Iran War Safe-haven Reasons to Own Gold - 20th May 19
How long does Google have to reference a website? - 20th May 19
Tory Leadership Contest - Will Michael Gove Stab Boris Johnson in the Back Again? - 19th May 19
Stock Market Counter-trend Rally - 19th May 19
Will Stock Market “Sell in May, Go Away” Lead to a Correction… or a Crash? - 19th May 19
US vs. Global Stocks Sector Rotation – What Next? Part 1 - 19th May 19
BrExit Party EarthQuake Could Win it 150 MP's at Next UK General Election! - 18th May 19
Dow Stock Market Trend Forecast 2019 May Update - 18th May 19
US Economy to Die a Traditional Death… Inflation Is Going to Move Higher - 18th May 19
Trump’s Trade War Is Good for These 3 Dividend Stocks - 18th May 19
GDX Gold Mining Stocks Fundamentals Update - 17th May 19
Stock Markets Rally Hard – Is The Volatility Move Over? - 17th May 19
The Use of Technical Analysis for Forex Traders - 17th May 19
Brexit Party Set to Storm EU Parliament Elections - Seats Forecast - 17th May 19
Is the Trade War a Catalyst for Gold? - 17th May 19
This Is a Recession Indicator No One Is Talking About—and It’s Flashing Red - 17th May 19
War! Good or Bad for Stocks? - 17th May 19
How Many Seats Will Brexit Party Win - EU Parliament Elections Forecast 2019 - 16th May 19

Market Oracle FREE Newsletter

U.S. House Prices Analysis and Trend Forecast 2019 to 2021

Physical Gold Demand Strong Below $1500 as Spain's Hidden Debt Adds to Eurozone Crisis

Commodities / Gold and Silver 2011 May 18, 2011 - 12:59 PM GMT

By: Adrian_Ash

Commodities

Best Financial Markets Analysis ArticleTHE PRICE OF GOLD rallied against all major currencies on Wednesday morning, hitting $1491 per ounce and rising 1.2% from yesterday's eight-day low as stock and commodity markets also gained.

Spot gold in Euros tracked the Dollar-price rise, continuing to hold inside 3% of December's all-time high as former German chancellor Gerhard Schroeder accused current leader Angela Merkel of being "too hesitant" and "lacking leadership" in the Eurozone debt crisis.



Government-bond yields edged up as debt prices slipped.
 
Silver prices gained 1% before handing most of it back to trade around $34 per ounce – some 30% below last month's 31-year high.

"Spot gold is about to retest this year's uptrend line at $1478," wrote Commerzbank's senior technical analyst Axel Rudolph in a note on Tuesday.

"This time round [it] should give way."

"We maintain our view that gold should be bought on dips below $1500," counters Marc Ground at Standard Bank in London.

"Investor interest in gold is still relatively strong. Coupled with the strong physical interest we've seen below $1500, this supports our long-term bullish view on gold."

"The demand for physical is rather interesting again," Reuters quotes Afshin Nabavi, head of trading at Switzerland's MKS Finance.

Spot Gold prices "could not break [below] $1470 yesterday, and so a bit of short covering overnight, as well as this demand, has taken us higher."

In the silver market, the iShares Silver Trust – the world's biggest exchange-traded silver ETF – saw its holdings rise by four-and-a-half tonnes as investor demand increased on Tuesday, marking only the fourth addition since falling from a record hoard of 11390 tonnes three weeks ago.

Holding its metal at J.P.Morgan's bank vaults in London, the SLV trust has since shed more than 900 tonnes of silver bullion as its shareholders sold out, a drop of 8% worth some $5.4 billion.

"Silver will probably bounce back at some point (potentially sharply), but for now further falls seem the most likely scenario," writes Daniel Smith, metals analyst at Standard Chartered, in a note to clients.

In the debt markets, meantime, Spanish government bonds fell in price – driving 10-year yields up to 5.37% – after the Financial Times reported research by consultants Freemarket Corporate Intelligence that says Spain may have up to €26 billion of "hidden debt" on the balance sheets of its 17 autonomous regional governments.

That comes on top of the official figure of €115 billion ($163bn), which itself has almost doubled since 2008. In November last year, Madrid imposed deficit limits on the regions, but in January Spain's biggest region, Catalonia, then said that it had missed its 2010 target.

"There's a lack of leadership right now...Someone has to say 'That's enough' more often," said former German chancellor Gerhard Schroeder in an interview Tuesday, criticizing his replacement Angela Merkel's handling of the Eurozone debt crisis.

Berlin cannot justify the cost of new bailout programs to German taxpayers, he says, "unless they force creditors that have made a lot of money on the enormous interest rates for Greece and the others to share the cost."

Now awaiting trial for attempted rape in New York, International Monetary Fund chief Dominique Strauss Kahn should be replaced by someone "at least friendly to traditional German views" reckons Frederik Erixon, director of the European Centre for International Political Economy in Brussels.

"The growing question among politicians in Berlin is why aren't there any Germans in top economic positions...If [German chancellor Angela] Merkel agreed not to put forward a German she would be seen as internally weak."

Italian policy-maker Mario Draghi is set to succeed Frenchman Jean-Claude Trichet as president of the European Central Bank in October, after German central-banker Axel Weber dropped out of the race.

Spot gold prices for UK investors also ticked higher today as the Pound fell to a six-week low following news that only three out of nine Bank of England policy-makers voted to raise interest rates at this month's meeting.

One of the other six members voted to raise the £200 billion "quantitative easing" program instead.

UK consumer-price inflation rose to a 30-month high in April of 4.5%. Bank Rate has now been held at 0.5% since Feb. 2009.

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.


Comments

greg63252@gmail.com
18 May 11, 22:50
Greg - Eurozone

The Eurozone is crock. Germany should bite the bullet now and pull out. The problem is easy enough to understand. You run a good strong econcomy but are responsible for all the other countries in your group but have no control over them! If they go down you go down. Ridiculous. Otherwise known as putting all your eggs in one basket. There would be no Euro crisis if there was no Euro. On top of that Europe ir become a Muslim state because of zero border controls.


Paul_B
19 May 11, 09:39
Euro Disaster Zone

Far from bringing the "prosperity" we were all promised, the euro has brought only poverty, despair, unemployment, bankruptcy and foreclosure to untold millions right around the edges of the continent. In the core countries it is giving rise to inflationary pressures not seen since the 1920s. The people responsible for its (forced) introduction should be tracked down and thrown into prison for a very long time.


peter
19 May 11, 13:58
eurozone

the only value of the euro is once again to the unelected bankers who understand that whoever controls the money supply controls the people, in this case the people of Europe. This is nothing more than another takeover by the banks.

I agree that Germany needs to bail out of this mess and go back to it's own roots and it's own currency. Germany has a fundamental difference in philosopy as far as work and wealth is concerned for them to be aligned with the southern european states.

This will not end well.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules