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
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
It’s Not Technology but the Fed That Is Taking Away Jobs - 16th May 19
Learn to Protect your Forex Trading Capital - 16th May 19
Gold Ratio Charts Offer The Keys to the Bull Market - 16th May 19
Is Someone Secretly Smashing the Stock Market at Night? - 16th May 19

Market Oracle FREE Newsletter

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

Gold Price Remains Flat

Commodities / Gold and Silver 2011 May 31, 2011 - 12:20 PM GMT

By: Adrian_Ash

Commodities

THE WHOLESALE price to buy gold continued trading in a tight range Tuesday morning around $1538 per ounce – just over 2% off its all-time high – following a flat day Monday as the US and UK had official holidays.

Stock and commodity markets meantime rose sharply – while US Treasury bonds fell – after news of a possible Eurozone agreement on a new financial aid package for Greece.


Silver prices gained 1.7% before settling into a range just below $39 per ounce, still 20% of the peak seen at the start of the month.

"Although there seems to be sporadic scrap-selling of gold, physical market buying interest has been strong so far this week, and we expect this trend to remain in place," says Walter de Wet, precious metals strategist at Standard Bank.

Asian precious metals trade saw a "quiet market" on Tuesday, according to one Hong Kong-based bullion dealer.

"It's a very quiet start," agreed a Singapore dealer, speaking to Reuters. "But we saw two-way business [on Monday]. Thailand and Indonesia were sellers [of gold], while the Indians were the buyers. We also saw speculators buying silver." 

The Euro price to buy gold hit a one-week low of €34,261 per kilogram (€1066 per ounce) on Tuesday morning, as the single currency continued the climb away from $1.40 started last Wednesday, reaching $1.44 by lunchtime in London. 

"The total restructuring of the Greek debt is not an option and isn't envisaged by anyone," Jean-Claude Juncker, chairman of the Eurozone finance ministers, told reporters in Paris on Monday.

"There is no difference between soft restructuring and restructuring," ECB executive board member Lorenzo Bini Smaghi told the Financial Times in an interview on Friday. "There is no such thing as an 'orderly' debt restructuring in current circumstances."

In Athens the Greek press reported Tuesday morning that the country's government has agreed a deal with its troika of creditors – the ECB, the International Monetary Fund and the EU – to borrow a further €60 billion to enable it to service its debt through 2012.

"Given the current state of political and economic affairs in Europe, is there any reason to believe that at the margin – and perhaps at the very center – money shall do anything other than to leave the Euro and to gravitate toward gold?" asked renowned investor Dennis Gartman on Monday.

Gartman last week described gold as the "trump card" currency.

The troika last year agreed to lend Greece €110 billion. Juncker warned last week that the IMF may have to withhold its portion of the next tranche of the bailout – due before July and worth a total of €12 billion – due to IMF rules which prevent loans to governments that cannot guarantee their solvency for at least 12 months.

Financial Times Deutschland reported on Tuesday that Germany, the Netherlands and other countries were still pushing for restructuring, asking private creditors to extend maturities on Greek debt.

However, a Wall Street Journal story claimed that Germany had dropped restructuring as a condition of any new loans to Greece.

"These are just temporary solutions," says Andrew Pease, senior investment strategist Asia Pacific at Russell Investment Group. "Talk of additional aid for Greece has given investors some relief for now...[but] that's not a sustainable solution."

"The European problem is way beyond Greece," adds BlackRock chief executive Larry Fink, speaking to Bloomberg Television on Tuesday.

Away from Greece, the ECB on Friday raised the amount by which it discounts the face value – otherwise known as the 'haircut' – on Portuguese bonds offered as collateral, from 5.5% to 10.5%.

By Ben Traynor
BullionVault.com

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

Editor of Gold News, the analysis and investment research site from world-leading gold ownership service BullionVault, Ben Traynor was formerly editor of the Fleet Street Letter, the UK's longest-running investment letter. A Cambridge economics graduate, he is a professional writer and editor with a specialist interest in monetary economics.

(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