Most Popular
1. THE INFLATION MONSTER is Forecasting RECESSION - Nadeem_Walayat
2.Why APPLE Could CRASH the Stock Market! - Nadeem_Walayat
3.The Stocks Stealth BEAR Market - Nadeem_Walayat
4.Inflation, Commodities and Interest Rates : Paradigm Shifts in Macrotrends - Rambus_Chartology
5.Stock Market in the Eye of the Storm, Visualising AI Tech Stocks Buying Levels - Nadeem_Walayat
6.AI Tech Stocks Earnings BloodBath Buying Opportunity - Nadeem_Walayat
7.PPT HALTS STOCK MARKET CRASH ahead of Fed May Interest Rate Hike Meeting - Nadeem_Walayat
8.50 Small Cap Growth Stocks Analysis to CAPITALISE on the Stock Market Inflation -Nadeem_Walayat
9.WE HAVE NO CHOICE BUT TO INVEST IN STOCKS AND HOUSING MARKET - Nadeem_Walayat
10.Apple and Microsoft Nuts Are About to CRACK and Send Stock Market Sharply Lower - Nadeem_Walayat
Last 7 days
The Inflation Mega-trend and UK House Prices - Housing Market Analysis Trend Forecast 2022 to 2025 - 5th July 22
Gold Price Summer Seasonal Doldrums - 5th July 22
Tame Budgies Having Fun on a Grape Vine - UK Parakeet Easy Training - 5th July 22
Is the US Yield Curve Inversion Broken? - 3rd July 22
New Signs Economic Turmoil Will Prompt Fed to Lose Its Nerve - 3rd July 22
Stagflation With Powell Could Make Gold Price Happy - 3rd July 22
UK Housing Market Analysis, Trend Forecast 2022 to 2025 - Part 2 - 30th June 22
Stock Market Turning the Screws - 30th June 22
How to Ignore Stocks (and why you should) - 30th June 22
Top Tips For Getting The Correct Insurance Option For Your Needs - 30th June 22
Central Banks Plan To Buy More Gold In 2022 - 30th June 22
AI Tech Stock PORTFOLIO NAME OF THE GAME - 29th June 22
Rebounding Crude Oil Gets Far Away from the Bearish Side - 29th June 22
UK House Prices - Lets Get Jiggy With UK INTEREST RATES - 28th June 22
GOLD STOCKS ARE WORSE THAN GOLD - 28th June 22
This “Bizarre” Chart is Wrecking the Stock Market - 28th June 22
Recession Question Answered - 28th June 22
Technical Analysis: Why You Should Expect a Popularity Surge - 28th June 22
Have US Bonds Bottomed? - 27th June 22
Gold Junior Miners: A Bearish Push Is Coming to Move Them Lower - 27th June 22
Stock Market Watching Out - 27th June 22
The NEXT BIG EMPIRE WILL BE..... CANZUK - 25th June 22
Who (or What) Is Really in Charge of Bitcoin's Price Swings? - 25th June 22
Crude Oil Price Forecast - Trend Breaks Downward – Rejecting The $120 Level - 25th June 22
Everyone and their Grandma is Expecting a Big Stocks Bear Market Rally - 23rd June 22
The Fed’s Hawkish Bite Left Its Mark on the S&P 500 Stocks - 23rd June 22
No Dodging the Stock Market Bullet - 23rd June 22
How To Set Up A Business To Better Manage In The Free Market - 23rd June 22
Why Are Precious Metals Considered A Good Investment? Find Out Here - 23rd June 22
UK House Prices and the Inflation Mega-trend - 22nd June 22
Sportsbook Betting Reviews: How to Choose a Sportsbook- 22nd June 22
Looking to buy Cannabis Stocks? - 22nd June 22
UK House Prices Momentum Forecast - 21st June 22
The Fed is Incompetent - Beware the Dancing Market Puppet - 21st June 22
US Economy Headed for a Hard Landing - 21st June 22
How to Invest in EU - New Opportunities Uncovered - 21st June 22
How To Protect Your Assets During Inflation - 21st June 22

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Gold "Vulnerable" as U.S. Treasury Bond Market Sell-Off Worsens

Commodities / Gold and Silver 2012 Mar 15, 2012 - 07:49 AM GMT

By: Adrian_Ash

Commodities

Best Financial Markets Analysis ArticleThe WHOLESALE-MARKET gold price twice rose within a few cents of $1650 per ounce in London Thursday morning, adding 0.9% from yesterday's fresh 8-week low as industrial commodities ticked lower again.

The price of silver bullion rallied 2.3% to $32.40 per ounce, but remained over 5% down for the week so far, being "very much influenced" by the gold price according to one Swiss precious-metals dealer.


Japanese and Hong Kong equities rose, but European stock markets were flat while US equity futures pointed higher.

The price of US Treasury fell for the seventh consecutive session, pushing the 10-year bond's yield up to 2.29% – just shy of Wednesday's 5-month high – and extending the longest period of price falls since 2006 on Bloomberg's data.

"The [bond] market is on the back foot," reckons head strategist Charles Diebel at Lloyds Banking Group in London.

"The catalyst seemed to be the Fed acknowledging the better growth."

Analyst forecasts for today's US jobless data pointed to a further drop in the number of people claiming unemployment benefits.

US manufacturing and consumer price data – due Thursday and tomorrow respectively – were forecast to show a slight rise.

"Overall, the [gold price] looks rather vulnerable with a likelihood of testing lower levels before it resumes it upward run," says refinery and finance group MKS in its latest note.

"What seems to be surprising at these levels is lack of firm physical demand."

Over in India, however – the world's No.1 gold buying nation – "Demand has improved significantly in the past two days," Reuters quotes a Mumbai dealer.

"Prices have fallen and there is also concern about import duty hike in tomorrow's budget."

New Delhi doubled gold import duties – and handed India's domestic gold-recycling operators a strong price advantage – in January.

Despite yesterday's fresh drop in the gold price, the quantity of physical bullion held to back the SPDR Gold Trust – the world's single largest exchange-traded gold trust (ETF), now capitalized at $68 billion on the New York Stock Exchange – remained unchanged after slipping half-a-tonne Tuesday to 1293.3 tonnes.

Gold ETF holdings worldwide were unchanged Wednesday at a record high of 2409.7 tonnes, according to Bloomberg data.

Open interest in US gold futures crept 0.6% higher on Wednesday to 445,163 contracts – greater by 1.2% from a week before.

"Gold dropped bearishly [on Wednesday] through our Fibo support level," says Russell Browne at bullion bank Scotia Mocatta, pointing to another Fibonacci level – based on a number series used by some technical analysts to spot important prices – for the "the next key support level at 1625.

"A definitive close below this support level opens up a full retracement to the December low of 1522."

On the currency market Thursday morning, the US Dollar eased back from last night's rise close to a 7-week high against the Euro, which slipped near $1.30.

That held the gold price in Euros below €40,600 per kilo (€1263 per ounce).

Spain today sold €3 billion in new debt, paying 3.37% annually on 4-year debt – just less than it paid at a sale in January, despite prime minister Mariano Rajoy saying last week that Madrid will breach the newly-agreed budget deficit limit for Eurozone members.

Europe's benchmark Brent crude slipped but held near record-highs in Euro and Sterling terms.

The Reuters newswire claims that US president Obama and British prime minister Cameron yesterday discussed using emergency oil reserves to bring prices lower.

"The window for solving [Iran's nuclear program] diplomatically is shrinking," Obama told a press conference.

By Adrian Ash
BullionVault.com

Gold price chart, no delay   |   Buy gold online at live prices

Formerly 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 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