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
AI Mega-trend Tech Stocks Buying Levels Q2 2020 - 1st Jun 20
M2 Velocity Collapses – Could A Bottom In Capital Velocity Be Setting Up? - 1st Jun 20
The Inflation–Deflation Conundrum - 1st Jun 20
AMD 3900XT, 3800XT, 3600XT Refresh Means Zen 3 4000 AMD CPU's Delayed for 5nm Until 2021? - 1st Jun 20
Why Multi-Asset Brokers Like TRADE.com are the Future of Trading - 1st Jun 20
Will Fed‘s Cap On Interest Rates Trigger Gold’s Rally? - 30th May
Is Stock Market Setting Up for a Blow-Off Top? - 29th May 20
Strong Signs In The Mobile Gaming Market - 29th May 20
Last Clap for NHS and Carers, Sheffield UK - 29th May 20
The AI Mega-trend Stocks Investing - When to Sell? - 28th May 20
Trump vs. Biden: What’s at Stake for Precious Metals Investors? - 28th May 20
Stocks: What to Make of the Day-Trading Frenzy - 28th May 20
Why You’ll Never Get Another Stimulus Check - 28th May 20
Implications for Gold – 2007-9 Great Recession vs. 2020 Coronavirus Crisis - 28th May 20
Ray Dalio Suggests USA Is Entering A Period Of Economic Decline And New World Order - 28th May 20
Europe’s Coronavirus Pandemic Dilemma - 28th May 20
I Can't Pay My Payday Loans What Will Happen - 28th May 20
Predictive Modeling Suggests US Stock Markets 12% Over Valued - 27th May 20
Why Stocks Bear Market Rallies Are So Tricky - 27th May 20
Precious Metals Hit Resistance - 27th May 20
Crude Oil Cuts Get Another Saudi Boost as Oil Demand Begins to Show Signs of Life - 27th May 20
Where the Markets are heading after COVID-19? - 27th May 20
Silver Springboards Higher – What’s Next? - 26th May 20
Stock Market Key Resistance Breakout Is Where the Rubber Meets the Road - 26th May 20
5 Ways To Amp Up Your CFD Trading Today - 26th May 20
The Anatomy of a Gold Stock Bull Market - 26th May 20
Stock Market Critical Price Level Could Soon Prompt A Big Move - 25th May 20
Will Powell Decouple Gold from the Stock Market? - 25th May 20
How Muslims Celebrated EID in Lockdown Britain 2020 - UK - 25th May 20
Stock Market Topping Behavior - 24th May 20
Fed Action Accelerates Boom-Bust Cycle; Not A Virus Crisis - 23rd May 20
Gold Silver Miners and Stocks (after a quick drop) Ready to Explode - 23rd May 20
3 Ways to Prepare Financially for Retirement - 23rd May 20
4 Essential Car Trade-In Tips To Get The Best Value - 23rd May 20
Budgie Heaven at Bird Land - 23rd May 20
China’s ‘Two Sessions’ herald Rebound of Economy - 22nd May 20
Signs Of Long Term Devaluation US Real Estate - 22nd May 20
Reading the Tea Leaves of Gold’s Upcoming Move - 22nd May 20
Gold, Silver, Mining Stocks Teeter On The Brink Of A Breakout - 21st May 20
Another Bank Bailout Under Cover of a Virus - 21st May 20
Do No Credit Check Loans Online Instant Approval Options Actually Exist? - 21st May 20
An Eye-Opening Perspective: Emerging Markets and Epidemics - 21st May 20
US Housing Market Covid-19 Crisis - 21st May 20
The Coronavirus Just Hit the “Fast-Forward” Button on These Three Industries - 21st May 20
AMD Zen 3 Ryzen 9 4950x Intel Destroying 24 core 48 thread Processor? - 21st May 20
Dow Stock Market Trend Analysis and Forecast - 20th May 20
The Credit Markets Gave Their Nod to the S&P 500 Upswing - 20th May 20
Where to get proper HGH treatment in USA - 20th May 20
Silver Is Ensured A Prosperous 2020 Thanks To The Fed - 20th May 20
It’s Not Only Palladium That You Better Listen To - 20th May 20
DJIA Stock Market Technical Trend Analysis - 19th May 20
US Real Estate Showing Signs Of Covid19 Collateral Damage - 19th May 20
Gold Stocks Fundamental Indicators - 19th May 20
Why This Wave is Usually a Market Downturn's Most Wicked - 19th May 20
Gold Mining Stocks Flip from Losses to 5x Leveraged Gains! - 19th May 20
Silver Price Begins To Accelerate Higher Faster Than Gold - 19th May 20
Gold Will Soar Soon; World Now Faces 'Monetary Armageddon' - 19th May 20

Market Oracle FREE Newsletter

Coronavirus-stocks-bear-market-2020-analysis

Gold Price Struggling for Momentum But Still Respecting Long Term Uptrend

Commodities / Gold and Silver 2012 Apr 02, 2012 - 09:40 AM GMT

By: Ben_Traynor

Commodities

Best Financial Markets Analysis ArticleSPOT MARKET gold prices jumped to $1669 per ounce ahead of Monday's US trading, broadly in line with where they ended last week, though they remained below the Asian session peak touched briefly following the release of positive Chinese manufacturing data.

"Gold [is] still respecting the long-term uptrend," says the latest technical analysis note from bullion bank Scotia Mocatta.


Silver bullion prices hovered around $32.50 per ounce – 0.5% up on Friday's close – while stocks failed to hold onto early gains.

Commodities were broadly flat and US Treasuries ticked higher.

Physical precious metals markets reported quiet activity Monday morning, with Chinese markets closed until Thursday for the Qingming Festival and Indian jewelry dealers still on strike.

"There is no business in gold and silver," Kumar Jain, vice president of the Mumbai Jewellers' Association, which covers ten thousand jewelers, told Reuters.

"The whole value chain has shut."

Imports of gold bullion by India, the world's largest gold consumer last year, fell by 55% last month, according to Bombay Bullion Association president Prithviraj Kothari, as jewelers shut their shops following an announcement by India's government that they were doubling the duty on gold imports and taxing gold jewelry sales.

"Sales have dipped drastically as almost 80 to 90 per cent of the jewelers have joined the protest against duty hike," says Kothari.

In New York meantime, the net long position of so-called speculative gold futures and options traders on the Comex – measured as the difference between bullish and bearish contracts – rose 15% in the week ended last Tuesday, according to data released at the end of last week's trading by the Commodity Futures Trading Commission.

Open interest however hit its lowest level this year on a Tuesday – the day of the week for which the CFTC publishes its Commitments of Traders reports. Data from CME Group show it fell further towards the end of last week.

"Gold [lacks] sufficient investment enthusiasm to be able to sideline the physical market as it did earlier in the year," says a note from Barclays.

"Prices are struggling to gain momentum."

"Recently prices have been driven strongly by speculative sentiment and it is not surprising to see those pullbacks," adds Eugen Weinberg, head of commodities research at Commerzbank.

"But in the longer term, we still stay very confident that the upward trend in gold is still very constructive...I think in the longer term, gold will perform even more like a currency, and be less dependent on the jewelry sector."

Here in Europe, Eurozone finance ministers agreed Friday to allow the roughly €300 billion already committed from the temporary bailout fund, the European Financial Stability Facility, to run alongside the €500 billion European Stability Mechanism, the permanent bailout vehicle due to become operational in July.

However, uncommitted funds from the €440 billion EFSF will not be available once the ESM comes in, capping the amount available for new rescues at €500 billion.

European leaders were told at February's G20 meeting that they needed to do more to solve the Eurozone crisis before they asked for extra money from the International Monetary Fund.
"Europe has done its part," said French finance minister Francois Baroin after Friday's talks. The IMF is due to meet on April 20.

Some European banks meantime are planning to repay loans from the European Central Bank's longer term refinancing operations two years early to avoid needing to raise money at the same time as many other banks, the Financial Times reports.

Banks borrowed over €1 trillion at the two LTROs in December and February.

Elsewhere in Europe, Eurozone manufacturing activity continued to fall last month – and at a faster rate than February – according to purchasing managers index figures released Monday.

Eurozone manufacturing PMI fell from 49.0 in February to 47.7 in March, with a figure below 50.0 indicating sector contraction. The unemployment rate in the Eurozone meantime rose to 10.8% last month, up from 10.7% in January, official data showed Monday.

In Germany, manufacturing PMI fell from 50.2 in February to 48.4 last month
By contrast, the latest data show the UK's manufacturing sector continued to grow last month, with March's PMI reported as 52.1, up from 51.5 in February.

China also reported accelerating growth in its manufacturing sector, with March's official PMI reading 53.1, up from 51.0 the previous month.

"Keep in mind that in March the official PMI always rises 3 percentage points from its February level," says Zhang Zhiwei, chief China economist at Nomura.

"Compared to the past, the official average PMI is about 56, whereas this month, it`s only 53. It's still very much lower."

Economists at Societe Generale however counter that even adjusting for seasonality, China's PMI remain above 50, while "the 'seasonality' this March was not especially large relative to the same month in previous years," adds SocGen interest rate strategist Christian Carrillo.

Over in the US, the first three months of 2012 saw the US Mint record its lowest first quarter sales figures for gold coins in four years.

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