Best of the Week
Most Popular
1. US Housing Market Real Estate Crash The Next Shoe To Drop – Part II - Chris_Vermeulen
2.The Coronavirus Greatest Economic Depression in History? - Nadeem_Walayat
3.US Real Estate Housing Market Crash Is The Next Shoe To Drop - Chris_Vermeulen
4.Coronavirus Stock Market Trend Implications and AI Mega-trend Stocks Buying Levels - Nadeem_Walayat
5. Are Coronavirus Death Statistics Exaggerated? Worse than Seasonal Flu or Not?- Nadeem_Walayat
6.Coronavirus Stock Market Trend Implications, Global Recession and AI Stocks Buying Levels - Nadeem_Walayat
7.US Fourth Turning Accelerating Towards Debt Climax - James_Quinn
8.Dow Stock Market Trend Analysis and Forecast - Nadeem_Walayat
9.Britain's FAKE Coronavirus Death Statistics Exposed - Nadeem_Walayat
10.Commodity Markets Crash Catastrophe Charts - Rambus_Chartology
Last 7 days
The Beatings Will Continue Until the Economy Improves - 6th Jul 20
The Corona Economic Depression Is Here - 6th Jul 20
Stock Market Short-term Peaking - 6th Jul 20
Gold’s Major Reversal to Create the “Handle” - 5th July 20
Gold Market Manipulation And The Federal Reserve - 5th July 20
Overclockers UK Custom Build PC Review - 1. Ordering / Stock Issues - 5th July 20
How to Bond With Your Budgie / Parakeet With Morning Song and Dance - 5th July 20
Silver Price Trend Forecast Summer 2020 - 3rd Jul 20
Silver Market Is at a Critical Juncture - 3rd Jul 20
Gold Stocks Breakout Not Confirmed Yet - 3rd Jul 20
Coronavirus Strikes Back. But Force Is Strong With Gold - 3rd Jul 20
Stock Market Russell 2000 Gaps Present Real Targets - 3rd Jul 20
Johnson & Johnson (JNJ) Big Pharma Stock for Machine Learning Life Extension Investing - 2nd Jul 20
All Eyes on Markets to Get a Refreshed Outlook - 2nd Jul 20
The Darkening Clouds on the Stock Market S&P 500 Horizon - 2nd Jul 20
US Fourth Turning Reaches Boiling Point as America Bends its Knee - 2nd Jul 20
After 2nd Quarter Economic Carnage, the Quest for Philippine Recovery - 2nd Jul 20
Gold Completes Another Washout Rotation – Here We Go - 2nd Jul 20
Roosevelt 2.0 and ‘here, hold my beer' - 2nd Jul 20
U.S. Dollar: When Almost Everyone Is Bearish... - 1st Jul 20
Politicians Prepare New Money Drops as US Dollar Weakens - 1st Jul 20
Gold Stocks Still Undervalued - 1st Jul 20
High Premiums in Physical Gold Market: Scam or Supply Crisis? - 1st Jul 20
US Stock Markets Enter Parabolic Price Move - 1st Jul 20
In The Year 2025 If Fiat Currency Can Survive - 30th Jun 20
Gold Likes the IMF Predicting a Deeper Recession - 30th Jun 20
Silver Is Still Cheap For Now - 30th Jun 20
More Stock Market Selling Ahead - 30th Jun 20
Trending Ecommerce Sites in 2020 - 30th Jun 20
Stock Market S&P 500 Approaching the Precipice - 29th Jun 20
APPLE Tech Stock for Investing to Profit from the Machine Learning Mega trend - 29th Jun 20
Student / Gamer Custom System Build June 2020 Proving Impossible - Overclockers UK - 29th Jun 20
US Dollar with Ney and Gann Angles - 29th Jun 20
Europe's Banking Sector: When (and Why) the Rout Really Began - 29th Jun 20
Will People Accept Rampant Inflation? Hell, No! - 29th Jun 20
Gold & Silver Begin The Move To New All-Time Highs - 29th Jun 20
US Stock Market Enters Parabolic Price Move – Be Prepared - 29th Jun 20
Meet BlackRock, the New Great Vampire Squid - 28th Jun 20
Stock Market S&P 500 Approaching a Defining Moment - 28th Jun 20
U.S. Long Bond: Let's Review the "Upward Point of Exhaustion" - 27th Jun 20
Gold, Copper and Silver are Must-own Metals - 27th Jun 20
Why People Have Always Held Gold - 27th Jun 20
Crude Oil Price Meets Key Resistance - 27th Jun 20
INTEL x86 Chip Giant Stock Targets Artificial Intelligence and Quantum Computing for 2020's Growth - 25th Jun 20
Gold’s Long-term Turning Point is Here - 25th Jun 20
Hainan’s ASEAN Future and Dark Clouds Over Hong Kong - 25th Jun 20
Silver Price Trend Analysis - 24th Jun 20
A Stealth Stocks Double Dip or Bear Market Has Started - 24th Jun 20
Trillion-dollar US infrastructure plan will draw in plenty of metal - 24th Jun 20
WARNING: The U.S. Banking System ISN’T as Strong as Advertised - 24th Jun 20
All That Glitters When the World Jitters is Probably Gold - 24th Jun 20
Making Sense of Crude Oil Price Narrow Trading Range - 23rd Jun 20
Elon Musk Mocks Nikola Motors as “Dumb.” Is He Right? - 23rd Jun 20
MICROSOFT Transforming from PC Software to Cloud Services AI, Deep Learning Giant - 23rd Jun 20
Stock Market Decline Resumes - 22nd Jun 20
Excellent Silver Seasonal Buying Opportunity Lies Directly Ahead - 22nd Jun 20
Where is the US Dollar trend headed ? - 22nd Jun 20
Most Shoppers have Stopped Following Supermarket Arrows, is Coughing the New Racism? - 22nd Jun 20

Market Oracle FREE Newsletter

AI Stocks 2020-2035 15 Year Trend Forecast

Silver & Gold Looking at Gains on Week Despite Dull Markets

Commodities / Gold and Silver 2012 Feb 24, 2012 - 07:07 AM GMT

By: Ben_Traynor

Commodities

Best Financial Markets Analysis ArticleU.S. DOLLAR gold bullion prices held steady around $1780 an ounce Friday morning London time, having fallen slightly from yesterday's 3-month high.

Silver bullion meantime hit its highest level since September, rising to $35.74 per ounce just after London opened.


"Silver has finally broken out of its sideways range," says Russell Browne, technical analyst at bullion bank Scotia Mocatta.

"We have also cleared the previous resistance at $35.16...and this level should now start to act as support."

Stocks and commodities were relatively flat going into this weekend's G20 meeting, while government bond prices ticked higher.

Heading into the weekend, gold bullion at Friday lunchtime looked set for a weekly gain of over 3%, with silver looking at a gain of over 6% on last Friday's close.

However "the market is still dull" says gold dealer Pinakin Vyas, assistant vice president at IndusInd Bank in Mumbai, which imports gold bullion.

"Gold prices have moved up $40 [in two days], so people will take time to digest these prices."

"While one would not expect strong physical demand as prices push higher," adds a note from Swiss investment bank UBS, "the overall weakness in physical demand of late has caught our attention...in India, volumes have eased this week."

UBS also sees signs of slower activity on the Shanghai Gold Exchange.

"SGE premiums have been hovering at the lower end of the range, reflecting consistently muted demand out of China post-Lunar New Year."

The ongoing Eurozone crisis is expected to dominate discussions at this weekend's meeting of G20 finance ministers and central bank governors in Mexico. Eurozone leaders will be encouraged to increase the size of the so-called 'firewall', the European Stability Mechanism bailout fund, before asking for help from the International Monetary Fund, the Financial Times reports.

"IMF resources cannot be a substitute for further steps by the Eurozone to support its currency," UK chancellor George Osborne and Japanese finance minister Jun Azumi wrote in a jointly-authored FT article yesterday.

"The Eurozone must increase the resources of its firewall so the markets can be reassured that it can respond to any eventuality."

"Until Europe starts showing more signs that it's getting its act together," adds Mohamed El-Erian, chief executive of world's largest bond fund Pimco, in the same organ Friday, "the other G20 members must resist [pressure for the IMF to lend]."

Germany remains opposed to increasing the size of the €500 billion ESM, due to become operational in July, by adding to it funds that remain in the existing temporary bailout vehicle the European Financial Stability Facility.

The German Bundestag is due to vote Monday on whether to approve the second Greek bailout deal earlier this week, while Eurozone leaders are set to discuss the ESM's size at a summit next Thursday.

Germany appears to be the only Eurozone nation opposed to an increase after Dutch finance minister Jan Kees de Jager expressed his support for such a move on Wednesday.

"We're aware we're pretty isolated," one German source tells newswire Reuters.

"But this has to be a unanimous decision."

Another source told the newswire that domestic politics creates a disincentive for German politicians to support the idea:

"It doesn't help anyone to agree on something that isn't going to go through the Bundestag."

Elsewhere in Europe, the European Commission yesterday revised down its growth forecasts for the Eurozone. It now expects the single currency area as a whole to see its economy shrink 0.3% in 2012 – compared to its forecast last autumn for 0.5% growth.

Spain's government has asked the Commission to ease its budget deficit target following the revised forecasts.

Eurozone banks could seek to borrow around €470 billion at next week's 3-Year longer term refinancing operation by the European Central Bank, according to the median estimate of a survey by news agency Bloomberg. This would represent a small decline from the amount borrowed at December's LTRO, as well as a dig drop from earlier estimates that €1 trillion.

ECB president Mario Draghi has stressed that there is "no stigma" in borrowing at the LTRO, and that "the facilities are there to be used".

"It is really monetary expectations that are making the investment rationale for gold," reckons Bayram Dincer, analysts at LGT Capital Management.

"Conditional on those expectations, it makes sense, but the potential for disappointment, and price consolidation, is a given."

Across the Atlantic, US Mint sales of American Eagle gold bullion coins so far this month are down 87% on January's total by weight, according to US Mint data.

So far this year, 4.4tonnes of the gold coins – the most popular gold investment coin produced by the US Mint – have been sold.

By comparison, the US Mint sold over seven tonnes in the first two months of 2011.

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 2012

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