Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
Why President Trump Has NO Real Power - Deep State Military Industrial Complex - 8th Nov 24
Social Grant Increases and Serge Belamant Amid South Africa's New Political Landscape - 8th Nov 24
Is Forex Worth It? - 8th Nov 24
Nvidia Numero Uno in Count Down to President Donald Pump Election Victory - 5th Nov 24
Trump or Harris - Who Wins US Presidential Election 2024 Forecast Prediction - 5th Nov 24
Stock Market Brief in Count Down to US Election Result 2024 - 3rd Nov 24
Gold Stocks’ Winter Rally 2024 - 3rd Nov 24
Why Countdown to U.S. Recession is Underway - 3rd Nov 24
Stock Market Trend Forecast to Jan 2025 - 2nd Nov 24
President Donald PUMP Forecast to Win US Presidential Election 2024 - 1st Nov 24
At These Levels, Buying Silver Is Like Getting It At $5 In 2003 - 28th Oct 24
Nvidia Numero Uno Selling Shovels in the AI Gold Rush - 28th Oct 24
The Future of Online Casinos - 28th Oct 24
Panic in the Air As Stock Market Correction Delivers Deep Opps in AI Tech Stocks - 27th Oct 24
Stocks, Bitcoin, Crypto's Counting Down to President Donald Pump! - 27th Oct 24
UK Budget 2024 - What to do Before 30th Oct - Pensions and ISA's - 27th Oct 24
7 Days of Crypto Opportunities Starts NOW - 27th Oct 24
The Power Law in Venture Capital: How Visionary Investors Like Yuri Milner Have Shaped the Future - 27th Oct 24
This Points To Significantly Higher Silver Prices - 27th Oct 24
US House Prices Trend Forecast 2024 to 2026 - 11th Oct 24
US Housing Market Analysis - Immigration Drives House Prices Higher - 30th Sep 24
Stock Market October Correction - 30th Sep 24
The Folly of Tariffs and Trade Wars - 30th Sep 24
Gold: 5 principles to help you stay ahead of price turns - 30th Sep 24
The Everything Rally will Spark multi year Bull Market - 30th Sep 24
US FIXED MORTGAGES LIMITING SUPPLY - 23rd Sep 24
US Housing Market Free Equity - 23rd Sep 24
US Rate Cut FOMO In Stock Market Correction Window - 22nd Sep 24
US State Demographics - 22nd Sep 24
Gold and Silver Shine as the Fed Cuts Rates: What’s Next? - 22nd Sep 24
Stock Market Sentiment Speaks:Nothing Can Topple This Market - 22nd Sep 24
US Population Growth Rate - 17th Sep 24
Are Stocks Overheating? - 17th Sep 24
Sentiment Speaks: Silver Is At A Major Turning Point - 17th Sep 24
If The Stock Market Turn Quickly, How Bad Can Things Get? - 17th Sep 24
IMMIGRATION DRIVES HOUSE PRICES HIGHER - 12th Sep 24
Global Debt Bubble - 12th Sep 24
Gold’s Outlook CPI Data - 12th Sep 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Silver Hits 2-Month High

Commodities / Gold and Silver 2012 Aug 21, 2012 - 07:49 AM GMT

By: Ben_Traynor

Commodities

Best Financial Markets Analysis ArticleSPOT MARKET prices to buy silver rose to their highest level in two months Tuesday, hitting  $29.09 per ounce– 3.5% up on last week's close – after extending gains from yesterday's trading.

"This changes [silver's] posture to bullish," says the latest technical analysis note from bullion bank Scotia Mocatta.


"There was congestion in the $28.00 area and this should provide some support, while the next target is the $29.90 high from June."

Dollar gold prices meantime climbed to their highest level so far this month this morning, hitting $1626 per ounce.

By contrast, the gold price in Euros traded lower, falling to €42,069 per kilo (€1308 per ounce), just below last week's close, as the Euro extended gains against the Dollar to breach $1.24.

Stocks and commodities also traded higher, while US, UK and German government bond prices fell, following fresh reports that Eurozone policymakers are looking at ways of limiting the borrowing costs faced by struggling single currency members.

European Central Bank president Mario Draghi has received the backing of fellow ECB Executive Board member Joerg Asmussen, who tells Germany's Frankfurter Rundschau that a new program to buy Eurozone government bonds will be "better designed" than previous ECB interventions.

"A currency can only be stable if its future existence is not in doubt," says Asmussen.

"We operate within our mandate, which is primarily aimed at guaranteeing price stability in the medium term for the entire Euro area."

Britain's Telegraph newspaper meantime says it can "confirm reports" from Germany's Der Spiegel that ECB staff are studying plans to put a limit on Italian and Spanish sovereign bond yields.

"[Asmussen's] choice of wording is crucial," says the Telegraph's Ambrose Evans-Pritchard. 

"If it can be shown that the ECB is acting to avert [Eurozone] break-up – known as "convertibility risk" – bond purchases would no longer be deemed a bail-out for Italy and Spain."

Spain successfully auctioned €4.5 billion of 12- and 18-month debt Tuesday, at lower borrowing costs than those faced at similar auctions last month.

Elsewhere in Europe, Jean-Claude Juncker, who heads the Eurogroup of single currency finance ministers, is due to visit Athens tomorrow to discuss Greece's request for an extension on its austerity program.

"The market focus is on the meetings that are happening in and around Greece and the key question is whether or not they allow an extension to the fiscal adjustment program," says Geoff Kendrick, head of European currency strategy at Nomura in London.

The adjustment required from struggling European nations "is at best only half complete", according to a report published by Moody's this week.

China's central bank meantime injected 220 billion Yuan into the financial system Tuesday, although borrowing costs still ticked higher, Bloomberg and Reuters report.

The People's Bank of China used so-called reverse repos, exchanging its cash for borrowers' securities for an agreed period, in an effort to boost current levels of market liquidity. The use of reverse repos is an alternative to cutting interest rates or the reserve requirement ratio, the proportion of their assets institutions are required to hold as reserves.

"The market demand is quite large," one Shanghai trader told Reuters this morning.

"Monday's demand was really heavy. The central bank's action today basically just satisfied current demand, but didn't in any way exceed it in a way that would bring rates down."

"We still expect a reserve requirement cut," adds Dariusz Kowalczyk, Hong Kong-based strategist at Credit Agricole.

Chinese platinum imports doubled last in July compared to a year earlier, while imports of silver bullion fell by 4%, Reuters reports, citing customs data.

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.


© 2005-2022 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