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 Investors’ Limitless Risk Appetite - 27th Jan 21
3 Dividend Paying Stocks to Ride the New Housing Boom - 27th Jan 21
Biden Seeks Huge Spending, Globally Coordinated Tax Hikes - 27th Jan 21
Will Inflation Make Gold Shine in 2021? - 27th Jan 21
Amazon AI Stocks Investing Analysis 2021 - 27th Jan 21
Why You Shouldn’t Get Excited About Gold Price Mini-Rally - 26th Jan 21
The Truth About Personal Savings Everybody Should Know and Think About - 26th Jan 21
4 Economic Challenges for 2021 - 26th Jan 21
Scan Computers 2021 "Awaiting Picking" - 5950x RTX 3080 Custom PC Build Stock Status - 26th Jan 21
The End of the World History Stock Market Chart : Big Pattern = Big Move - 26th Jan 21
Stock Market Recent Sector Triggers Suggest Stocks May Enter Rally Phase - 26th Jan 21
3 Top-Performing Tech Stocks for 2021 - 26th Jan 21
5 Tips to Manage Your Debt - 26th Jan 21
Stock Market Intermediate Trend Intact - 25th Jan 21
Precious Metals Could Decline Before their Next Attempt to Rally - 25th Jan 21
Great Ways of Choosing Good CMMS Software for a Business - 25th Jan 21
The Dark Forces behind American Insurrectionists - 25th Jan 21
Economic Stimulus Doesn’t Always Stimulate – Pushing On A String - 25th Jan 21
Can Karcher K7 Pressure Washer Clean a Weed Infested Driveway? Extreme Power Test - 25th Jan 21
Lockdown Sea Shanty Craze - "Drunken Sailor" on the Pirate Falls Crazy Boat Ride - 25th Jan 21
Intel Empire Fights Back with Rocket and Alder Lake! - 24th Jan 21
4 Reasons for Coronavirus 2021 Hope - 24th Jan 21
Apple M1 Chip Another Nail in Intel's Coffin - Top AI Tech Stocks 2021 - 24th Jan 21
Stock Market: Why You Should Prepare for a Jump in Volatility - 24th Jan 21
What’s next for Bitcoin Price – $56k or $16k? - 24th Jan 21
How Does Credit Repair Work? - 24th Jan 21
Silver Price 2021 Roadmap - 22nd Jan 21
Why Biden Wants to Win the Fight for $15 Federal Minimum Wage - 22nd Jan 21
Here’s Why Gold Recently Moved Up - 22nd Jan 21
US Dollar Decline creates New Sector Opportunities to Trade - 22nd Jan 21
Sandisk Extreme Micro SDXC Memory Card Read Write Speed Test Actual vs Sales Pitch - 22nd Jan 21
NHS Recommends Oximeter Oxygen Sensor Monitors for Everyone 10 Months Late! - 22nd Jan 21
DoorDash Has All the Makings of the “Next Amazon” - 22nd Jan 21
How to Survive a Silver-Gold Sucker Punch - 22nd Jan 21
2021: The Year of the Gripping Hand - 22nd Jan 21
Technology Minerals appoints ex-BP Petrochemicals CEO as Advisor - 22nd Jan 21
Gold Price Drops Amid Stimulus and Poor Data - 21st Jan 21
Protecting the Vulnerable 2021 - 21st Jan 21
How To Play The Next Stage Of The Marijuana Boom - 21st Jan 21
UK Schools Lockdown 2021 Covid Education Crisis - Home Learning Routine - 21st Jan 21
General Artificial Intelligence Was BORN in 2020! GPT-3, Deep Mind - 20th Jan 21
Bitcoin Price Crash: FCA Warning Was a Slap in the Face. But Not the Cause - 20th Jan 21
US Coronavirus Pandemic 2021 - We’re Going to Need More Than a Vaccine - 20th Jan 21
The Biggest Biotech Story Of 2021? - 20th Jan 21
Biden Bailout, Democrat Takeover to Drive Americans into Gold - 20th Jan 21
Pandemic 2020 Is Gone! Will 2021 Be Better for Gold? - 20th Jan 21
Trump and Coronavirus Pandemic Final US Catastrophe 2021 - 19th Jan 21
How To Find Market Momentum Trades for Explosive Gains - 19th Jan 21
Cryptos: 5 Simple Strategies to Catch the Next Opportunity - 19th Jan 21
Who Will NEXT Be Removed from the Internet? - 19th Jan 21
This Small Company Could Revolutionize The Trillion-Dollar Drug Sector - 19th Jan 21
Gold/SPX Ratio and the Gold Stock Case - 18th Jan 21
More Stock Market Speculative Signs, Energy Rebound, Commodities Breakout - 18th Jan 21
Higher Yields Hit Gold Price, But for How Long? - 18th Jan 21
Some Basic Facts About Forex Trading - 18th Jan 21
Custom Build PC 2021 - Ryzen 5950x, RTX 3080, 64gb DDR4 Specs - Scan Computers 3SX Order Day 11 - 17th Jan 21
UK Car MOT Covid-19 Lockdown Extension 2021 - 17th Jan 21
Why Nvidia Is My “Slam Dunk” Stock Investment for the Decade - 16th Jan 21
Three Financial Markets Price Drivers in a Globalized World - 16th Jan 21
Sheffield Turns Coronavirus Tide, Covid-19 Infections Half Rest of England, implies Fast Pandemic Recovery - 16th Jan 21

Market Oracle FREE Newsletter

FIRST ACCESS to Nadeem Walayat’s Analysis and Trend Forecasts

Gold Loses 1.3% for the Week, Chinese Demand for Gold to Get Stronger

Commodities / Gold and Silver 2011 Jun 24, 2011 - 08:36 AM GMT

By: Ben_Traynor

Commodities Best Financial Markets Analysis ArticleTHE SPOT PRICE to buy gold traded in a tight range around $1520 an ounce Friday morning London time – 0.5% above its one-month low – having fallen in Asian trading, while stocks gained after comments from China's premier that inflation in that country is under control.

Spot oil prices dipped Thursday after the International Energy Agency said it will release 60 million barrels of oil from strategic reserves.


Going into the weekend, the Dollar gold price was headed for a 1.3% loss for the week Friday lunchtime. 

The Sterling price to buy gold, meantime, slid to £947 per ounce Friday morning – slightly below last week's close – following a hectic day Thursday which saw it plunge 1.8% from its record high.

The silver price slid to $34.68 – a 3.3% drop on the week.

"We are bullish on gold while the metal holds above $1504," says technical analysts at bullion bank Scotia Mocatta. 

If the price to buy gold falls below $1500, however, it could slip as far as $1463 they warn.
"Our long term view on gold remains unchanged," says Walter de Wet, commodities strategist at Standard Bank.

"We believe gold will continue to push higher in 2011."

China's manufacturing sector has barely grown in June, according to HSBC's purchasing managers' index, prompting fears that China – the world's second largest gold bullion market – is heading for an economic "hard landing".

HSBC's PMI – which is published roughly a week ahead of the official PMI – fell to 50.1 for June, down from 52 in May. A figure of 50 or above shows growth, while below 50 shows contraction.

"Demand is cooling due to the effects of tightening measures and slackness in external markets," said Qu Hongbin, HSBC's chief economist for China.

"The good news is that inflationary pressures started to ease meaningfully in June," following May's rise in consumer price inflation to 5.5%.

"China has made capping price rises the priority of macroeconomic regulation," writes China's premier Wen Jiabao in Friday's Financial Times.

"The overall price level is within a controllable range and is expected to drop steadily. The output of grain, of which there is now an abundant supply, has increased for seven years in a row."

"Inflation may peak in June or July," agrees Hua Zhongwei, Beijing-based analyst at Huachuang Securities. 

"But there are many underlying factors that could push up prices such as labor cost and agricultural product inflation." 

China's largest farming company, Heilongjiang Beidahuang, last week signed a joint venture with Cresud of Argentina to farm soybeans. The company also plans to spend $1.5 billion leasing farms in Argentina's Rio Negro province, on which it will grow a range of crops, including wheat and corn.

China also expects to import a record 2 million tons of corn from the US this year, according to Ding Shengjun, senior researcher at China's Academy of State Administration of Grain.

"Importing the corn from the US is a practical way to stabilize the domestic price," says Ding.
Chinese demand to buy gold, meantime, will continue rise as a result of ongoing inflation fears, according to Zhang Bingnan, secretary general of the China Gold Association.

"Enthusiasm for gold as an investment will get stronger," says Zhang, adding that gold investment demand "will keep doubling in the next two years." 

Here in Europe, the EU announced Friday that it has agreed a deal to provide fresh financial aid to Greece – subject to the Greek parliament passing €78 billion worth of austerity measures.

"This is an important decision that says once again we will do everything to stabilize the Euro overall," said German chancellor Angela Merkel.

The deal will involve "a voluntary rollover of bonds so that it will not create a credit event," said Olli Rehn, European commissioner for economic affairs.

"Foreign banks will struggle to justify rolling existing holdings unless the rate at which they can do so is economically viable," warns Mark Schofield, global head of interest rate strategy at Citi.

Rates that are "potentially attractive to investors, are not sustainable for Greece and would, if locked in, lead very quickly to insolvency".

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