Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
Chinese Tech Stocks CCP Paranoia, VIES - Variable Interest Entities - 19th Oct 21
Inflation Peaked Again, Right? - 19th Oct 21
Gold Stocks Bouncing Hard - 19th Oct 21
Stock Market New Intermediate Bottom Forming? - 19th Oct 21
Beware, Gold Bulls — That’s the Beginning of the End - 18th Oct 21
Gold Price Flag Suggests A Big Rally May Start Soon - 18th Oct 21
Inflation Or Deflation – End Result Is Still Depression - 18th Oct 21
A.I. Breakthrough Could Disrupt the $11 Trillion Medical Sector - 18th Oct 21
US Economy and Stock Market Addicted to Deficit Spending - 17th Oct 21
The Gold Price And Inflation - 17th Oct 21
Went Long the Crude Oil? Beware of the Headwinds Ahead… - 17th Oct 21
Watch These Next-gen Cloud Computing Stocks - 17th Oct 21
Overclockers UK Custom Built PC 1 YEAR Use Review Verdict - Does it Still Work? - 16th Oct 21
Altonville Mine Tours Maze at Alton Towers Scarefest 2021 - 16th Oct 21
How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
The Only way to Crush Inflation (not stocks) - 14th Oct 21
Why "Losses Are the Norm" in the Stock Market - 14th Oct 21
Sub Species Castle Maze at Alton Towers Scarefest 2021 - 14th Oct 21
Which Wallet is Best for Storing NFTs? - 14th Oct 21
Ailing UK Pound Has Global Effects - 14th Oct 21
How to Get 6 Years Life Out of Your Overclocked PC System, Optimum GPU, CPU and MB Performance - 13th Oct 21
The Demand Shock of 2022 - 12th Oct 21
4 Reasons Why NFTs Could Be The Future - 12th Oct 21
Crimex Silver: Murder Most Foul - 12th Oct 21
Bitcoin Rockets In Preparation For Liftoff To $100,000 - 12th Oct 21
INTEL Tech Stock to the MOON! INTC 2000 vs 2021 Market Bubble WARNING - 11th Oct 21
AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
Stock Market Wall of Worry Meets NFPs - 11th Oct 21
Stock Market Intermediate Correction Continues - 11th Oct 21
China / US Stock Markets Divergence - 10th Oct 21
Can US Save Taiwan From China? Taiwan Strait Naval Battle - PLA vs 7th Fleet War Game Simulation - 10th Oct 21
Gold Price Outlook: The Inflation Chasm Between Europe and the US - 10th Oct 21
US Real Estate ETFs React To Rising Housing Market Mortgage Interest Rates - 10th Oct 21
US China War over Taiwan Simulation 2021, Invasion Forecast - Who Will Win? - 9th Oct 21
When Will the Fed Taper? - 9th Oct 21
Dancing with Ghouls and Ghosts at Alton Towers Scarefest 2021 - 9th Oct 21
Stock Market FOMO Going into Crash Season - 8th Oct 21
Scan Computers - Custom Build PC 6 Months Later, Reliability, Issues, Quality of Tech Support Review - 8th Oct 21
Gold and Silver: Your Financial Main Battle Tanks - 8th Oct 21
How to handle the “Twin Crises” Evergrande and Debt Ceiling Threatening Stocks - 8th Oct 21
Why a Peak in US Home Prices May Be Approaching - 8th Oct 21
Alton Towers Scarefest is BACK! Post Pandemic Frights Begin, What it's Like to Enter Scarefest 2021 - 8th Oct 21
AJ Bell vs II Interactive Investor - Which Platform is Best for Buying US FAANG Stocks UK Investing - 7th Oct 21
Gold: Evergrande Investors' Savior - 7th Oct 21
Here's What Really Sets Interest Rates (Not Central Banks) - 7th Oct 21

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.


© 2005-2019 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