Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
US House Prices Trend Forecast 2024 to 2026 - 11th Oct 24
US Housing Market Analysis - Immigration Drives House Prices Higher - 30th Sep 24
Stock Market October Correction - 30th Sep 24
The Folly of Tariffs and Trade Wars - 30th Sep 24
Gold: 5 principles to help you stay ahead of price turns - 30th Sep 24
The Everything Rally will Spark multi year Bull Market - 30th Sep 24
US FIXED MORTGAGES LIMITING SUPPLY - 23rd Sep 24
US Housing Market Free Equity - 23rd Sep 24
US Rate Cut FOMO In Stock Market Correction Window - 22nd Sep 24
US State Demographics - 22nd Sep 24
Gold and Silver Shine as the Fed Cuts Rates: What’s Next? - 22nd Sep 24
Stock Market Sentiment Speaks:Nothing Can Topple This Market - 22nd Sep 24
US Population Growth Rate - 17th Sep 24
Are Stocks Overheating? - 17th Sep 24
Sentiment Speaks: Silver Is At A Major Turning Point - 17th Sep 24
If The Stock Market Turn Quickly, How Bad Can Things Get? - 17th Sep 24
IMMIGRATION DRIVES HOUSE PRICES HIGHER - 12th Sep 24
Global Debt Bubble - 12th Sep 24
Gold’s Outlook CPI Data - 12th Sep 24
RECESSION When Yield Curve Uninverts - 8th Sep 24
Sentiment Speaks: Silver Is Set Up To Shine - 8th Sep 24
Precious Metals Shine in August: Gold and Silver Surge Ahead - 8th Sep 24
Gold’s Demand Comeback - 8th Sep 24
Gold’s Quick Reversal and Copper’s Major Indications - 8th Sep 24
GLOBAL WARMING Housing Market Consequences Right Now - 6th Sep 24
Crude Oil’s Sign for Gold Investors - 6th Sep 24
Stocks Face Uncertainty Following Sell-Off- 6th Sep 24
GOLD WILL CONTINUE TO OUTPERFORM MINING SHARES - 6th Sep 24
AI Stocks Portfolio and Bitcoin September 2024 - 3rd Sep 24
2024 = 1984 - AI Equals Loss of Agency - 30th Aug 24
UBI - Universal Billionaire Income - 30th Aug 24
US COUNTING DOWN TO CRISIS, CATASTROPHE AND COLLAPSE - 30th Aug 24
GBP/USD Uptrend: What’s Next for the Pair? - 30th Aug 24
The Post-2020 History of the 10-2 US Treasury Yield Curve - 30th Aug 24
Stocks Likely to Extend Consolidation: Topping Pattern Forming? - 30th Aug 24
Why Stock-Market Success Is Usually Only Temporary - 30th Aug 24
The Consequences of AI - 24th Aug 24
Can Greedy Politicians Really Stop Price Inflation With a "Price Gouging" Ban? - 24th Aug 24
Why Alien Intelligence Cannot Predict the Future - 23rd Aug 24
Stock Market Surefire Way to Go Broke - 23rd Aug 24
RIP Google Search - 23rd Aug 24
What happened to the Fed’s Gold? - 23rd Aug 24
US Dollar Reserves Have Dropped By 14 Percent Since 2002 - 23rd Aug 24
Will Electric Vehicles Be the Killer App for Silver? - 23rd Aug 24
EUR/USD Update: Strong Uptrend and Key Levels to Watch - 23rd Aug 24
Gold Mid-Tier Mining Stocks Fundamentals - 23rd Aug 24
My GCSE Exam Results Day Shock! 2024 - 23rd Aug 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Gold Safe Haven Jumps 2% as Stock Market Indices Crash

Stock-Markets / Financial Markets 2011 Aug 05, 2011 - 09:55 AM GMT

By: GoldCore

Stock-Markets

Best Financial Markets Analysis ArticleGold is 0.75% higher in dollar terms this morning on safe haven buying after yesterday’s 0.43% fall. Gold is marginally higher against all currencies and is trading at USD 1,659.50 , EUR 1,170.20 , GBP 1,018.30, CHF 1,269.00 per ounce and 130,530.00 JPY.

The surprisingly positive U.S. jobs figure may lead to further short term weakness.


Cross Currency Rates

Gold reached new record nominal highs in the dollar, euro and pound yesterday and remains close to these record highs today.

Gold’s slight fall yesterday (in dollars) was primarily due to margin calls in futures markets and profit taking.

Leveraged players in the futures market, such as banks and hedge funds, seeing massive losses on stock and commodity positions likely placed stop loss orders below the record highs yesterday which may have contributed to the slight dip.

Given the scale of losses incurred in yesterday’s ‘bloodbath’, margin calls will have forced many to close their long gold positions.

Some profit taking may also have taken place as gold has hit a succession of new record highs in recent days.

Also, gold is 17% higher year to date while most stock markets are in negative territory (the S&P is down 4.6% and the FTSE is down 9.2%) and some market participants may have decided to book profits.

Gold is nearly 2% higher in dollar terms for the week. It is 3.6%, 2.8%, 3.9%, 0.43%, 4.45% and 6.6% higher against the euro, pound, Japanese yen (see Gold Surges 3.8% in Japanese Yen as Global Currency Wars Resume), Swiss franc, Canadian and Australian dollar.

Thus in one of the most volatile weeks since the outset of the financial crisis, gold has risen in all currencies including the so called safe haven currencies. It has risen despite already healthy gains in 2011.

In dollar terms, gold may fall today as traders on Wall Street may be subject to further margin calls and may decide to take profits.

In the world’s financial market almanacs, this one will stand out as a time when governments and central banks became increasingly irrelevant.

It may be remembered as the time that gold reasserted itself as the ultimate safe haven asset and currency rather than the ‘volatile commodity.’

This week, financial markets looked on aghast as European leaders and their comfortably pensioned staffers made limp assurance after limp assurance.

The Italian and other European leaders incredulously blamed the market for pushing up their governments yields. Those of a wiser ilk immediately identified the rhetoric as delusional and another example of history repeating itself.

Similar misguided rhetoric was seen recently in Ireland, Greece, Portugal, France and other countries.

It is illustrative to look at the world of medicine.

If a doctor over prescribes the same medicine for a condition again and again, a resistance will develop to the medicine and soon the condition will persist unabated and worsen.

Quite simply the patient - the capital markets and global financial system - has been over medicated with too much debt.

Real economies are now taking their q from government and central bank policies and not the demand side economics of a free market.

We are in dangerous waters indeed.

Angela is on holidays by the way. Guten grief!

The market and the power of the market is exerting itself and all the paper games and manipulations by the powers that be is being seen as increasingly futile.

Indeed, there is now a realization that the multitude of “coordinated actions” by the “masters of the universe” have been mere short term panaceas which have done nothing to address the root cause of the crisis.

These are massive debt levels in the U.S. and most of the western world and massive debt levels in the global financial system.

Giving “bailout” loans and creating more debt and piling this debt upon existing debt is no solution.

As we have long warned, ultimately it will create contagion in bond, currency and all markets and to the insolvency of millions of taxpayers and further economic decline.

The primary solution is a massive write down of debt and a downsizing and deleveraging of balance sheets internationally and the global financial system.

The will ameliorate the situation and potentially will protect us from a serious global Depression.

The coming weeks, months and years will be challenging especially for those who have not yet realized the diversification benefits and importance of owning gold

GOLDNOMICS - CASH OR GOLD BULLION?



'GoldNomics' can be viewed by clicking on the image above or on our YouTube channel:
www.youtube.com/goldcorelimited

This update can be found on the GoldCore blog here.

Yours sincerely,
Mark O'Byrne
Exective Director

IRL
63
FITZWILLIAM SQUARE
DUBLIN 2

E info@goldcore.com

UK
NO. 1 CORNHILL
LONDON 2
EC3V 3ND

IRL +353 (0)1 632 5010
UK +44 (0)203 086 9200
US +1 (302)635 1160

W www.goldcore.com

WINNERS MoneyMate and Investor Magazine Financial Analysts 2006

Disclaimer: The information in this document has been obtained from sources, which we believe to be reliable. We cannot guarantee its accuracy or completeness. It does not constitute a solicitation for the purchase or sale of any investment. Any person acting on the information contained in this document does so at their own risk. Recommendations in this document may not be suitable for all investors. Individual circumstances should be considered before a decision to invest is taken. Investors should note the following: Past experience is not necessarily a guide to future performance. The value of investments may fall or rise against investors' interests. Income levels from investments may fluctuate. Changes in exchange rates may have an adverse effect on the value of, or income from, investments denominated in foreign currencies. GoldCore Limited, trading as GoldCore is a Multi-Agency Intermediary regulated by the Irish Financial Regulator.

GoldCore is committed to complying with the requirements of the Data Protection Act. This means that in the provision of our services, appropriate personal information is processed and kept securely. It also means that we will never sell your details to a third party. The information you provide will remain confidential and may be used for the provision of related services. Such information may be disclosed in confidence to agents or service providers, regulatory bodies and group companies. You have the right to ask for a copy of certain information held by us in our records in return for payment of a small fee. You also have the right to require us to correct any inaccuracies in your information. The details you are being asked to supply may be used to provide you with information about other products and services either from GoldCore or other group companies or to provide services which any member of the group has arranged for you with a third party. If you do not wish to receive such contact, please write to the Marketing Manager GoldCore, 63 Fitzwilliam Square, Dublin 2 marking the envelope 'data protection'

GoldCore Archive

© 2005-2022 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