Best of the Week
Most Popular
1. Stock Markets and the History Chart of the End of the World (With Presidential Cycles) - 28th Aug 20
2.Google, Apple, Amazon, Facebook... AI Tech Stocks Buying Levels and Valuations Q3 2020 - 31st Aug 20
3.The Inflation Mega-trend is Going Hyper! - 11th Sep 20
4.Is this the End of Capitalism? - 13th Sep 20
5.What's Driving Gold, Silver and What's Next? - 3rd Sep 20
6.QE4EVER! - 9th Sep 20
7.Gold Price Trend Forecast Analysis - Part1 - 7th Sep 20
8.The Fed May “Cause” The Next Stock Market Crash - 3rd Sep 20
9.Bitcoin Price Crash - You Will be Suprised What Happens Next - 7th Sep 20
10.NVIDIA Stock Price Soars on RTX 3000 Cornering the GPU Market for next 2 years! - 3rd Sep 20
Last 7 days
Stock Market Investors’ Limitless Risk Appetite - 27th Jan 21
3 Dividend Paying Stocks to Ride the New Housing Boom - 27th Jan 21
Biden Seeks Huge Spending, Globally Coordinated Tax Hikes - 27th Jan 21
Will Inflation Make Gold Shine in 2021? - 27th Jan 21
Amazon AI Stocks Investing Analysis 2021 - 27th Jan 21
Why You Shouldn’t Get Excited About Gold Price Mini-Rally - 26th Jan 21
The Truth About Personal Savings Everybody Should Know and Think About - 26th Jan 21
4 Economic Challenges for 2021 - 26th Jan 21
Scan Computers 2021 "Awaiting Picking" - 5950x RTX 3080 Custom PC Build Stock Status - 26th Jan 21
The End of the World History Stock Market Chart : Big Pattern = Big Move - 26th Jan 21
Stock Market Recent Sector Triggers Suggest Stocks May Enter Rally Phase - 26th Jan 21
3 Top-Performing Tech Stocks for 2021 - 26th Jan 21
5 Tips to Manage Your Debt - 26th Jan 21
Stock Market Intermediate Trend Intact - 25th Jan 21
Precious Metals Could Decline Before their Next Attempt to Rally - 25th Jan 21
Great Ways of Choosing Good CMMS Software for a Business - 25th Jan 21
The Dark Forces behind American Insurrectionists - 25th Jan 21
Economic Stimulus Doesn’t Always Stimulate – Pushing On A String - 25th Jan 21
Can Karcher K7 Pressure Washer Clean a Weed Infested Driveway? Extreme Power Test - 25th Jan 21
Lockdown Sea Shanty Craze - "Drunken Sailor" on the Pirate Falls Crazy Boat Ride - 25th Jan 21
Intel Empire Fights Back with Rocket and Alder Lake! - 24th Jan 21
4 Reasons for Coronavirus 2021 Hope - 24th Jan 21
Apple M1 Chip Another Nail in Intel's Coffin - Top AI Tech Stocks 2021 - 24th Jan 21
Stock Market: Why You Should Prepare for a Jump in Volatility - 24th Jan 21
What’s next for Bitcoin Price – $56k or $16k? - 24th Jan 21
How Does Credit Repair Work? - 24th Jan 21
Silver Price 2021 Roadmap - 22nd Jan 21
Why Biden Wants to Win the Fight for $15 Federal Minimum Wage - 22nd Jan 21
Here’s Why Gold Recently Moved Up - 22nd Jan 21
US Dollar Decline creates New Sector Opportunities to Trade - 22nd Jan 21
Sandisk Extreme Micro SDXC Memory Card Read Write Speed Test Actual vs Sales Pitch - 22nd Jan 21
NHS Recommends Oximeter Oxygen Sensor Monitors for Everyone 10 Months Late! - 22nd Jan 21
DoorDash Has All the Makings of the “Next Amazon” - 22nd Jan 21
How to Survive a Silver-Gold Sucker Punch - 22nd Jan 21
2021: The Year of the Gripping Hand - 22nd Jan 21
Technology Minerals appoints ex-BP Petrochemicals CEO as Advisor - 22nd Jan 21
Gold Price Drops Amid Stimulus and Poor Data - 21st Jan 21
Protecting the Vulnerable 2021 - 21st Jan 21
How To Play The Next Stage Of The Marijuana Boom - 21st Jan 21
UK Schools Lockdown 2021 Covid Education Crisis - Home Learning Routine - 21st Jan 21
General Artificial Intelligence Was BORN in 2020! GPT-3, Deep Mind - 20th Jan 21
Bitcoin Price Crash: FCA Warning Was a Slap in the Face. But Not the Cause - 20th Jan 21
US Coronavirus Pandemic 2021 - We’re Going to Need More Than a Vaccine - 20th Jan 21
The Biggest Biotech Story Of 2021? - 20th Jan 21
Biden Bailout, Democrat Takeover to Drive Americans into Gold - 20th Jan 21
Pandemic 2020 Is Gone! Will 2021 Be Better for Gold? - 20th Jan 21
Trump and Coronavirus Pandemic Final US Catastrophe 2021 - 19th Jan 21
How To Find Market Momentum Trades for Explosive Gains - 19th Jan 21
Cryptos: 5 Simple Strategies to Catch the Next Opportunity - 19th Jan 21
Who Will NEXT Be Removed from the Internet? - 19th Jan 21
This Small Company Could Revolutionize The Trillion-Dollar Drug Sector - 19th Jan 21
Gold/SPX Ratio and the Gold Stock Case - 18th Jan 21
More Stock Market Speculative Signs, Energy Rebound, Commodities Breakout - 18th Jan 21
Higher Yields Hit Gold Price, But for How Long? - 18th Jan 21
Some Basic Facts About Forex Trading - 18th Jan 21
Custom Build PC 2021 - Ryzen 5950x, RTX 3080, 64gb DDR4 Specs - Scan Computers 3SX Order Day 11 - 17th Jan 21
UK Car MOT Covid-19 Lockdown Extension 2021 - 17th Jan 21
Why Nvidia Is My “Slam Dunk” Stock Investment for the Decade - 16th Jan 21
Three Financial Markets Price Drivers in a Globalized World - 16th Jan 21
Sheffield Turns Coronavirus Tide, Covid-19 Infections Half Rest of England, implies Fast Pandemic Recovery - 16th Jan 21

Market Oracle FREE Newsletter

FIRST ACCESS to Nadeem Walayat’s Analysis and Trend Forecasts

Gold Making Gains on Stronger Dollar, AAA-rated Debt "An Endangered Species"

Commodities / Gold and Silver 2012 Jul 24, 2012 - 12:43 PM GMT

By: Ben_Traynor

Commodities

Best Financial Markets Analysis ArticleU.S. DOLLAR gold prices fell to $1573 an ounce Tuesday morning in London – a few Dollars above last week's low – as stocks and commodities also traded lower, while US Treasuries were flat and German bunds fell after Germany's credit rating was placed on negative outlook.

Silver prices briefly dipped below $27 per ounce – 1.2% below where they began the week.


On the currency markets, the Euro briefly dropped below $1.21 for the second day in a row, while Euro gold prices hovered around €1300 per ounce – 3.2% off its six-month high. The gold price in Euros has gained 8% since the middle of May.

"Thanks to the Euro's depreciation vis-a-vis the US Dollar, gold in Euro terms has been making gains for some time now," says a note from Commerzbank.

Ratings agency Moody's said last night that it is placing three Aaa-rated Eurozone sovereigns, Germany, Luxembourg and the Netherlands, on negative outlook.

"There is an increasing likelihood that greater collective support for other Euro area sovereigns, most notably Spain and Italy, will be required," said a statement from Moody's.

"Given the greater ability to absorb the costs associated with this support, this burden will likely fall most heavily on more highly rated member states if the Euro area is to be preserved in its current form."

The German finance ministry responding by insisting that "Germany will, through solid economic and financial policy, defend its 'safe haven' status and continue to maintain its responsible anchor role in the Eurozone".

Moody's also said it will "assess the implications" of recent Eurozone developments for Austria and France, whose Aaa ratings the agency put on negative outlook in February.

"In all large industrialized countries, AAA is an endangered species," says Joerg Kraemer, chief economist at Commerzbank.

"They're all under fire."

Spain and Italy meantime both announced short-selling bans on Monday following heavy stock market losses. Spain's regulator CMNV has banned short-selling – by which traders bet on a fall in prices – on all Spanish securities for three months, Reuters reports. Italy's Consob has banned the short-selling of 29 banking and insurance stocks for one week.

Spain's Ibex stock index saw the biggest loss of major European bourses in Tuesday morning's trading, falling 2.7% by lunchtime, while Italy's FTSE MIB index was down 1.3%.

Both nations introduced short-selling bans last August, which also saw similar bans implemented by Belgium and France.

Benchmark yields on Spanish 10-Year government bonds continued to rise Tuesday to just below 7.6%, after two Spanish regions confirmed over the weekend that they plan to seek financial aid from the government in Madrid. Several other regions are also expected to ask for bailouts.

Despite this, Spain managed to sell just over €3 billion of three-month and six-month debt at an auction this morning, although borrowing costs were higher than at a similar auction last month.

In Italy, ten major cities, including Milan, Naples and Turin, are on the verge of financial collapse, according to a report in newspaper La Stampa, which also reports on growing calls on social media sites for a return to the Lira, as well as for people to withdraw funds from their bank accounts.

Italian 10-Year bond yields hit six-month highs at over 6.4% on Tuesday.

CME Group, the futures and options exchange operator that runs the New York Comex, announced Monday that is "exploring the concept of having clearing houses or other depositories hold all customer segregated funds".

A statement from CME Group said it "is appalled at the recent misuse of segregated funds by two firms, MF Global Inc. and PFG", adding that "the current system in which customer funds are held at the firm level must be re-evaluated".

Over in China – which has overtaken India in recent months to become the world's largest source of demand to buy gold – manufacturing has contracted at a slower pace this month than last, according to preliminary purchasing managers index data published by HSBC today.

HSBC's flash PMI for this month was 49.5, up from 48.2 in June, with a figure below 50 indicating sector contraction. The survey however showed a faster rate of employment contraction, with the sub-index for employment growth hitting its lowest level in 40 months.

"[This] should ring alarm bells in Beijing," says Nikolaus Keis, economist at UniCredit, who adds that he expects authorities to respond with fiscal and monetary stimulus measures.

"Creating enough jobs for millions of new graduates and rural migrant workers is crucial for the government."

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