Best of the Week
Most Popular
1. TESLA! Cathy Wood ARK Funds Bubble BURSTS! - 12th May 21
2.Stock Market Entering Early Summer Correction Trend Forecast - 10th May 21
3.GOLD GDX, HUI Stocks - Will Paradise Turn into a Dystopia? - 11th May 21
4.Crypto Bubble Bursts! Nicehash Suspends Coinbase Withdrawals, Bitcoin, Ethereum Bear Market Begins - 16th May 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.Cathy Wood Ark Invest Funds Bubble BURSTS! ARKK, ARKG, Tesla Entering Severe Bear Market - 13th May 21
7.Stock Market - Should You Be In Cash Right Now? - 17th May 21
8.Gold to Benefit from Mounting US Debt Pile - 14th May 21
9.Coronavius Covid-19 in Italy in August 2019! - 13th May 21
10.How to Invest in HIGH RISK Tech Stocks for 2021 and Beyond - Part 2 of 2 - 18th May 21
Last 7 days
US Economy and Stock Market Addicted to Deficit Spending - 17th Oct 21
The Gold Price And Inflation - 17th Oct 21
Went Long the Crude Oil? Beware of the Headwinds Ahead… - 17th Oct 21
Watch These Next-gen Cloud Computing Stocks - 17th Oct 21
Overclockers UK Custom Built PC 1 YEAR Use Review Verdict - Does it Still Work? - 16th Oct 21
Altonville Mine Tours Maze at Alton Towers Scarefest 2021 - 16th Oct 21
How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
The Only way to Crush Inflation (not stocks) - 14th Oct 21
Why "Losses Are the Norm" in the Stock Market - 14th Oct 21
Sub Species Castle Maze at Alton Towers Scarefest 2021 - 14th Oct 21
Which Wallet is Best for Storing NFTs? - 14th Oct 21
Ailing UK Pound Has Global Effects - 14th Oct 21
How to Get 6 Years Life Out of Your Overclocked PC System, Optimum GPU, CPU and MB Performance - 13th Oct 21
The Demand Shock of 2022 - 12th Oct 21
4 Reasons Why NFTs Could Be The Future - 12th Oct 21
Crimex Silver: Murder Most Foul - 12th Oct 21
Bitcoin Rockets In Preparation For Liftoff To $100,000 - 12th Oct 21
INTEL Tech Stock to the MOON! INTC 2000 vs 2021 Market Bubble WARNING - 11th Oct 21
AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
Stock Market Wall of Worry Meets NFPs - 11th Oct 21
Stock Market Intermediate Correction Continues - 11th Oct 21
China / US Stock Markets Divergence - 10th Oct 21
Can US Save Taiwan From China? Taiwan Strait Naval Battle - PLA vs 7th Fleet War Game Simulation - 10th Oct 21
Gold Price Outlook: The Inflation Chasm Between Europe and the US - 10th Oct 21
US Real Estate ETFs React To Rising Housing Market Mortgage Interest Rates - 10th Oct 21
US China War over Taiwan Simulation 2021, Invasion Forecast - Who Will Win? - 9th Oct 21
When Will the Fed Taper? - 9th Oct 21
Dancing with Ghouls and Ghosts at Alton Towers Scarefest 2021 - 9th Oct 21
Stock Market FOMO Going into Crash Season - 8th Oct 21
Scan Computers - Custom Build PC 6 Months Later, Reliability, Issues, Quality of Tech Support Review - 8th Oct 21
Gold and Silver: Your Financial Main Battle Tanks - 8th Oct 21
How to handle the “Twin Crises” Evergrande and Debt Ceiling Threatening Stocks - 8th Oct 21
Why a Peak in US Home Prices May Be Approaching - 8th Oct 21
Alton Towers Scarefest is BACK! Post Pandemic Frights Begin, What it's Like to Enter Scarefest 2021 - 8th Oct 21
AJ Bell vs II Interactive Investor - Which Platform is Best for Buying US FAANG Stocks UK Investing - 7th Oct 21
Gold: Evergrande Investors' Savior - 7th Oct 21
Here's What Really Sets Interest Rates (Not Central Banks) - 7th Oct 21
CISCO 2020 Dot com Bubble Stock vs 2021 Bubble Tech Stocks Warning Analysis - 6th Oct 21
Precious Metals Complex Searching for a Bottom - 6th Oct 21
FB, AMZN, NFLX, GOOG, AAPL and FANG+ '5 Waves' Speaks Volumes - 6th Oct 21
Budgies Flying Ability 10 Weeks After wings Clipped, Flight Feathers Cut Grow Back - 6th Oct 21
Why Silver Price Could Crash by 20%! - 5th Oct 21
Will China's Crackdown Send Bitcoin's Price Tumbling? - 5th Oct 21
Natural Gas News: Europe Lacks Supply, So It Turns to Asia - 5th Oct 21
Stock Market Correction: One More Spark to Light the Fire? - 5th Oct 21
Fractal Design Meshify S2, Best PC Case Review, Build Quality, Airflow etc. - 5th Oct 21
Chasing Value with Five More Biotech Stocks for the Long-run - 4th Oct 21
Gold’s Century - While stocks dominated headlines, gold quietly performed - 4th Oct 21
NASDAQ Stock Market Head-n-Shoulders Warns Of Market Weakness – Critical Topping Pattern - 4th Oct 21
US Dollar on plan, attended by the Gold/Silver ratio - 4th Oct 21
Aptorum Group - APM - High RIsk Biotech Stocks Buy, Sell, Hold Investing Analysis for the Long-run - 3rd Oct 21
US Close to Hitting the Debt Ceiling: Gold Doesn’t Care - 3rd Oct 21
Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
Original Oculus VR HeadSet Rift Dev Kit v1 Before Facebook Bought Oculus - 3rd Oct 21
Microsoft Stock Valuation 2021 vs 2000 Bubble - Buy Sell or Hold Invest Analysis - 1st Oct 21
How to profit off the Acquisition spree in Fintech Stocks - 1st Oct 21
�� Halloween 2021 TESCO Shopping Before the Next Big Panic Buying! �� - 1st Oct 2
The Guide to Building a Design Portfolio Online - 1st Oct 21
BioDelivery Sciences International - BDSI - High RIsk Biotech Stocks Buy, Sell, Hold Investing Analysis for the Long-run - 30th Sep 21
America’s Revolving-Door Politics Behind the Fall of US-Sino Ties - 30th Sep 21
Dovish to Hawkish Fed: Sounds Bearish for Gold - 30th Sep 21
Stock Market Gauntlet to the Fed - 30th Sep 21
Should you include ESG investments in your portfolio? - 30th Sep 21
Takeda - TAK - High RIsk Biotech Stocks Buy, Sell, Hold Investing Analysis for the Long-run - 29th Sep 21
Stock Market Wishing Away Inflation - 29th Sep 21
Why Workers Are NOT Returning to Work as Lockdown's End - Wage Slaves Rebellion - 29th Sep 21
UK Fuel PANIC! Fighting at the Petrol Pumps! As Lemmings Create a New Crisis - 29th Sep 21
Gold Could See Tapering as Soon as November! - 29th Sep 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Gold Steady, Trading in Tight Range

Commodities / Gold and Silver 2011 Jun 09, 2011 - 08:25 AM GMT

By: Ben_Traynor

Commodities

Best Financial Markets Analysis ArticleTHE U.S. DOLLAR gold price continued holding steady on Thursday morning, trading in a tight range around $1536 per ounce – 2.6% off May's spot market record high – while stocks and commodities rose ahead of UK and Eurozone interest rate announcements.

Silver prices gained to hit $37.23 per ounce – 2.7% up on the week so far.


"For the time being it seems that gold ought to stay trapped between $1530 and $1550," says Swiss precious metals group MKS.

"[Gold] is lacking any momentum for a rally while on the other side the support at $1530 seems quite strong."

Gains made by the gold price on Wednesday "don't feel decisive enough" reckons one bullion dealer here in London.

The Bank of England's Monetary Policy Committee voted Thursday to keep interest rates on hold at 0.5%, where it has held rates since March 2009.

The doves – those members of the MPC who are opposed to rate rises – "have the upper hand" at the Bank of England, said Brian Hilliard, London-based economist at Société Générale and a former Bank of England official, speaking before the announcement.

"The market is scaling back its rate expectations," in the face of "concerns about growth" he added.
Across the English Channel, meantime, the European Central Bank also voted to keep its policy rate steady, at 1.25%, its level since April this year.

Analysts on Thursday morning were expecting ECB president Jean-Claude Trichet to use the phrase "strong vigilance" in his afternoon press conference to signal a rate hike next month.

"The data from the Eurozone has held up remarkably well in recent weeks in contrast to countries like the US and the UK," Derek Halpenny, European head of global currency research at Bank of Tokyo-Mitsubishi told the Financial Times on Thursday morning.

Figures published Wednesday show that Eurozone GDP for the first quarter of the year grew 2.5% compared to the same period last year. By comparison, the UK economy grew 0.5% over the same period, while US data show growth at 1.8%.

Signaling a rate hike "reinforces the credibility of the ECB, which strives to highlight...that its role is to deliver price stability not solve the Eurozone debt crisis," said Halpenny.

"Greece is only a risk scenario for the ECB," adds Ken Wattret, chief euro-region economist at BNP Paribas in London.

"Assuming that the Greek problem doesn't become systemic, the ECB will press on." 

Both interest rate announcements had little immediate impact on the gold price.

In Vienna, meantime, the Organization of Petroleum Exporting Countries (OPEC) failed on Wednesday to agree on production quotas, after Iran persuaded five other members to vote against Saudi Arabia's proposal to raise output by 1.5 million barrels a day. 

The five included Libya, whose production – which stood at 1.58 million barrels a day in January – is cut off from the world market as a result of ongoing conflict.

OPEC's failure is "bullish" for oil prices, says Andrey Kryuchenkov, London-based analyst at VTB Capital.

"The market remains undersupplied."

Libyan production, which stood at nearly 1.6 million barrels a day in January, has been offline since military action began in the country. 

"Spare capacity is not what has been portrayed by OPEC," adds Lawrence Eagles, head of energy research at JP Morgan.

"Every OPEC member [will have to] produce at its maximum in the next few months to ensure the oil market is well supplied."

Over in the US, ratings agency Fitch has joined Standard & Poor's and Moody's in warning that the country's triple-A credit rating is at risk.

Fitch warned Wednesday that failure to agree an increase in the federal debt limit by August 2 would "imply a crisis of governance", and would risk the US missing payments on Treasury notes due on August 15.

Fitch warns that if that happens, the US would be in "restricted default", and Fitch would temporarily downgrade its debt to junk status.

Last week Moody's said it would place the US under review for possible downgrade if there no progress on raising the debt limit. Standard & Poor's changed its outlook on the US rating from "stable" to "negative" in April.

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