Best of the Week
Most Popular
1.Are UK Savings Interest Rates Finally Starting to Rise? Best Cash ISA 2017 - Nadeem_Walayat
2.Inflation Tsunami - Supermarkets, Retail Sector Crisis 2017, EU Suicide and Burning Stocks - Nadeem_Walayat
3.Big Moves in the World Stock Markets - Big Bases - Rambus_Chartology
4.The Next Financial Implosion Is Not Going To Be About The Banks! - Gordon_T_Long
5.Why EU BrExit Single Market Access Hard line is European Union Committing Suicide - Nadeem_Walayat
6.Trump Ramps Up US Military Debt Spending In Preparations for China War - Nadeem_Walayat
7.Watch What Happens When Silver Price Hits $26...  - MoneyMetals
8.Stock Market Fake Risk, Fake Return? Market Crash? - 2nd Mar 17 - Axel_Merk
9.Global Inflation Surges, Central Banks Losing Control and Triggered the Wage Price Spiral? - Nadeem_Walayat
10.Why Gold Will Boom In 2017 - James Burgess
Last 7 days
This is About So Much More Than Trump and Brexit - 23rd Mar 17
Trump Stock Market Rally Over? 20% Bear Drop By Mid Summer? - 22nd Mar 17
Trump Added $3 Trillion in Wealth to Stock Market Participants - 22nd Mar 17
What's Next for the US Dollar, Gold and Stocks? - 22nd Mar 17
MSM Bond Market Full Nonsense Mode as ‘Trump Trades’ Unwind on Schedule - 22nd Mar 17
Peak Gold – Biggest Gold Story Not Being Reported - 22nd Mar 17
Return of Sovereign France, Europe’s Changing Landscape - 22nd Mar 17
Trump Stocks Bull Market Rolling Over? You Were Warned! - 22nd Mar 17
Stock Market Charts That Scream “This Is It” - Here’s What to Do - 22nd Mar 17
Raising the Minimum Wage Is a Jobs Killing Move - 22nd Mar 17
Potential Bottoming Patterns in Gold and Silver Precious Metals Stocks Complex... - 22nd Mar 17
UK Stagflation, Soaring Inflation CPI 2.3%, RPI 3.2%, Real 4.4% - 21st Mar 17
The Demise of the Gold and Silver Bull Run is Greatly Exaggerated - 21st Mar 17
USD Decline Continues, Pull SPX Down as well? - 21st Mar 17
Trump Watershed Budget - 21st Mar 17
How do Client Acquisition Offers Affect Businesses? - 21st Mar 17
Physical Metals Demand Plus Manipulation Suits Will Break Paper Market - 20th Mar 17
Stock Market Uncertainty Following Interest Rate Increase - Will Uptrend Continue? - 20th Mar 17
Precious Metals : Who’s in Charge ? - 20th Mar 17
Stock Market Correction Continues - 20th Mar 17
Why The Status Quo Is Under Increasing Attack By 'Populist People Power' - 20th Mar 17
Why the SNP WILL Destroy Scotland, Exit UK Single Market for EU - IndyRef2 - 19th Mar 17
Crypto Craziness: Bitcoin Plunges on Fork Concerns, Steem Skyrockets and Dash Surges Above $100 - 19th Mar 17
What ‘Ice-Nine’ Means for Your Money - 19th Mar 17
Stock Market 4 Year Cycle - 18th Mar 17
The Only Article You Need to Read to Understand the Trump Phenomenon - 17th Mar 17
Janet Yellen Just Popped the Stock Market Bubble - 17th Mar 17
Financial Crisis, Steve Eisman: Smart, Lucky, Abrasive & Now One Of Them - 17th Mar 17
Gold Cup – Horse Racing’s Greatest Show, Gambling and ‘Going for Gold’ - 17th Mar 17
Trader Education Week - Free Event to Help You Learn to Spot Trading Opportunities - 17th Mar 17
$1.4 Trillion of SPX Notionals Due to Expire - 17th Mar 17
Preserving Order Amid Change in NAFTA, U.S. Sovereignty v. WTO - 17th Mar 17
3 Maps That Explain Why Syria Raqqa Battle Will Drag On - 17th Mar 17
Crude Oil Price Outlook 2017 - Video - 16th Mar 17
Dutch and French Electons - Winners are Losers and Left is Right - 16th Mar 17
The Straddle Trade Stock Market Brief - 16th Mar 17
Gold Up 1.8%, Silver Up 2.6% After Dovish Fed Signals Slow Interest Rate Rises - 16th Mar 17
Stocks Get Close To Record High Again As Fed Hikes Interest Rates - 16th Mar 17
Scotland Second Independence Referendum War - SNP Determined to Destroy the UK - 16th Mar 17
Here’s How Pharma Is Using AI Deep Learning To Cure Aging - 16th Mar 17
Stock Market Chaos in the Chicken Coop - 15th Mar 17
Gold and Silver Price Manipulation: The Biggest Financial Crime In History - 15th Mar 17
“Ryancare” Dead on Arrival: Can We Please Now Try Single Payer? - 15th Mar 17
Fanaticism, Stock Market Crash 2017 or Continuation of Bull Market - 15th Mar 17
Stock Market Most Overvalued On Record — Worse Than 1929? - 15th Mar 17
Desperate Saudi Arabia Turns to Asia for Investment - 15th Mar 17
Startups Will Define the Future of US Employment - 15th Mar 17
Fed Rate Hikes, Fiscal vs. Monetary Policy and Why Again the Case for Gold? - 15th Mar 17
SNP Declare Scotland to Commit Economic Suicide Early 2019, 2nd Independence Referendum - 14th Mar 17

Market Oracle FREE Newsletter

Elliott Wave Trading

Gold Capped atg $1,580, Hit by Another Concentrated Burst Of Selling On High Volume

Commodities / Gold and Silver 2012 May 30, 2012 - 03:15 PM GMT

By: GoldCore

Commodities

Best Financial Markets Analysis ArticleGold’s London AM fix this morning was USD 1,548.75, EUR 1,244.98, and GBP 995.41 per ounce. Yesterday's AM fix was USD 1,573.75, EUR 1,254.48, and GBP 1,003.67 per ounce.

Silver is trading at $27.75/oz, €22.39/oz and £17.87/oz. Platinum is trading at $1,416.25/oz, palladium at $597.75/oz and rhodium at $1,275/oz.


Gold fell 0.89% or $14.00 in active trading yesterday and closed at $1,558.80/oz. Gold fell marginally in Asia but remains in a tight range. In European trading gold is hovering near the $1,550/oz level.


Determined selling at the $1,580/oz level capped gold yesterday prior to a bout of sharp selling. This saw gold quickly fall $20 from $1,575/oz to $1,555/oz on heavy volume. Tuesday’s COMEX gold futures volume was well over 450,000 lots – which is close to the record for 2012 and volume more than doubled its 30 day average.

Gold 5 Day Chart – (Bloomberg)

Counter intuitively, gold turned sharply lower due to another bout of concentrated selling despite a distinct lack of market moving news – indeed market news was quite gold bullish. There were mere rumours that Egan Jones had downgraded Spain. The downgrade rumour , which was subsequently confirmed, saw the euro fall only marginally - from 1.253 to 1.248 and little movement in equities.

Gold is weaker again today despite heightened risk aversion on fears that the euro crisis is escalating. Concerns about Italy have resurfaced after their 10 year bond yield rose above the important 6% level this morning.

Gold has recently tracked the euro as many investors opted for the dollar over safe haven gold bullion in the near term. This was graphically seen during the Lehman and AIG crisis when gold also fell in the short term prior to quickly basing and making a speedy recovery soon after.

We would expect a similar pattern to take place again and the counter intuitive short term gold price movement of late will likely soon give way to a reassertion of the gold’s primary secular bull market trend.

Cross Currency Table – (Bloomberg)

Ongoing concerns about the euro, the downgrading of Spain and the risk of contagion is of course bullish for gold but gold can often be correlated with risk assets such as equities (and risk currencies such as the euro) in the short term.

Gold has risen from below €500 to over €1,200 in last 5 years so correlation with the euro is clearly short term.

Gold is inversely correlated with the dollar and all fiat currencies over the long term and best for investors and store of value buyers to fade out the short term noise of gold's corrections and short term correlation with risk assets.

Greece's elections on June 17th may be a short term positive for the euro if pro bailout parties win, however this is way too far away to call and the scale of the debt crisis in Europe suggests that national currencies may return or that the euro will be devalued or a combination thereof.

Some market watchers are waiting for central banks to give a clear signal as to whether they are going to inject trillions of more euros, pounds and dollars into struggling economies.

The near certain further debasement of currencies in the coming months will benefit gold.

Gold 1 Year Chart – (Bloomberg)

India’s recent gold purchasing power has been hurt by the country’s weak currency and it is expected that buying will remain slow until their rainy season ends in September.

However demand from China and the rest of Asia remains robust. "While Indian demand has been lower than normal, overall we continue to see decent buying interest from the rest of Asia," says Standard Bank, “especially South East Asia.”

Speculators and some investors are waiting on the sidelines for more clues regarding price direction but smart money such as George Soros, David Einhorn, Kyle Bass, Marc Faber, pension funds, institutions such as PIMCO and central banks continue to diversify into gold.

The smart money understands the diversification benefits of gold and knows that investments, pensions and protecting and preserving wealth is about owning quality assets and currencies over the long term.

For the latest news and commentary on financial markets and gold please follow us on Twitter.

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

© 2005-2016 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

Catching a Falling Financial Knife