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
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

Gold Trades at New All Time High

Commodities / Gold & Silver Jan 08, 2008 - 11:13 AM GMT

By: Adrian_Ash

Commodities SPOT GOLD PRICES leapt at the London opening on Tuesday, shooting 1.5% higher against the US Dollar to hit all-time record highs above $876 per ounce.

Australian investors saw Gold Prices break A$995, another new record high. In Canadian Dollars, gold hit C$876 per ounce, while the Gold Price in Euros jumped 1.3% to a new record of €595 – higher by nearly one-quarter from this time last year.


British investors looking to Buy Gold above £442 this morning have now seen the price gain more than 5.2% in the last week alone.

"Spot Gold Prices currently show no weakness," says Christopher Langguth in his technical analysis for Mitsui, the precious metals dealer, setting a near-term objective of $970 per ounce.

"However, gold has already reached or [is] close to most long-term projections and the advance has become very steep," Langguth believes – and new data from the Comex gold futures exchange in New York shows that speculative traders grew their bullish position by 8% in the last week of Dec., often a sign of short-term overheating.

" Gold Prices have been rising too fast," agrees Akira Doi at Daiichi Commodities in Tokyo , "but many people believe that gold will remain supported.

"There are simply too many reasons to hold gold as fears over inflation have been heightened by high oil prices."

Crude oil prices fell back early in London today, slipping below $96 per barrel while US Treasury bond prices also ticked lower, pushing the 10-year yield four basis points higher to 3.87%.

Two-year Treasury bond yields rose six points to 2.79% overnight, but with the most recent reading on price inflation for US consumer reaching 4.29%, returns to bond investors remain sharply negative – and low-to-negative bond yields remain the common denominator linking the Gold Market's historic bull runs of 1971-1980 and 2001 to date.

"Gold's rise shows investors are nervous," says the Financial Times today. "That is an important message for central banks contemplating interest rate cuts.

"The Fed must show it is not prepared to allow inflation to take off," the paper adds, but the market in US interest-rate futures market now puts the chance of the Fed cutting to 3.25% from the current 4.25% by April at one-in-two.

Over in India , meanwhile – the world's hungriest market for physical gold bullion – the Gold Market's most recent surge has been met with growing scrap-sales from jewelry owners. "If rates stay like this," said one large gold importer in New Delhi to Reuters yesterday, "jewelry demand may not pick up until [the strong gold-buying festival of Akshaya Thrithiya in] April.

Until then, he believes, "necessity-driven demand" for weddings and birthdays will be met via scrap sales. But "India has had a history of being a gold savvy country," PR.Dilip, head of Impetus Wealth Management, told the Hindu Business Line overnight, "with almost 750 tonnes of gold being consumed last year.

"Now we can see that more people are turning towards exchange-traded gold funds," he believes, "as they seem to be a safer option as compared to physical gold."

Dealing volumes in India 's exchange-traded gold funds fell last week, however, dropping by almost one-half from the finish of 2007 despite the surging Gold Price . And just as India 's growing middle-classes still prefer holding physical "investment jewelry" to stock certificates backed by gold, so China 's fast-growing investing classes would rather own metal than paper, too.

"I will not play gold futures," said Lao Wang, an investor in the Shanghai stock market since 1994, to Reuters on Monday.

"Gold is good, elders love it, but futures is another story. I do not want to lose all my money all at once. Futures is a kind of gambling."

Physical gold sales also continue to boom in the Middle East, reported the World Gold Council yesterday, with Gold Sales in Saudi Arabia rising nearly 17% by volume in 2007 for an increase by value of almost one-third.

"The economy of Saudi Arabia , especially after the euphoria of the stock market cooled off, grew in 2007 – and that helped gold demand in the country," said Moaz Barakat, head of the WGC's Middle East office, to The Peninsula newspaper. Gold demand in the United Arab Emirates rose 12% by volume, he said.

Dubai's stock market, now standing almost 50% higher from this time last year, was little changed by late afternoon on Tuesday, while on the currency markets the Euro crept back above $1.4700 despite news that retail sales in the 15-nation single currency zone slid by 1.4% in Nov. from the same month in 2006.

The British Pound briefly spiked more than one cent to $1.9840 on news that UK house prices rose 1.3% last month from Nov., but market sentiment towards Sterling has clearly turned, despite the Bank of England's anti-inflation protests.

Private-sector lending grew by 12.8% in Nov. from a year earlier, meaning that the global credit crunch has yet to dent four years of double-digit growth in UK credit creation.

By Adrian Ash
BullionVault.com

Gold price chart, no delay | Free Report: 5 Myths of the Gold Market
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 2007

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.

Adrian Ash Archive

© 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