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
Best AI Tech Stocks ETF and Investment Trusts - 19th Oct 21
Gold Mining Stocks: Will Investors Dump the Laggards? - 19th Oct 21
The Most Exciting Medical Breakthrough Of The Decade? - 19th Oct 21
Prices Rising as New Dangers Point to Hard Assets - 19th Oct 21
It’s not just Copper; GYX indicated cyclical the whole time - 19th Oct 21
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

Gold and Silver "Continue Upswing"

Commodities / Gold and Silver 2012 Sep 04, 2012 - 07:05 AM GMT

By: Ben_Traynor

Commodities

Best Financial Markets Analysis ArticleWHOLESALE prices to buy gold bullion hovered above $1690 an ounce Tuesday morning in London, in line with where they started the week, while stocks and commodities were broadly flat and US Treasuries fell, as markets looked ahead to this week's European Central Bank policy meeting.

Silver bullion rose as high as $32.33 per ounce – 1.9% up on the week so far, and the highest level since April.


"Precious metals are continuing their upswing," says Tuesday's commodities note from Commerzbank.

"Silver has made even stronger gains than gold...underpinned by speculative financial investors."
On the Shanghai Futures Exchange, the most actively traded silver contract hit a record high of 6932 Yuan per kilogram, newswire Reuters reports. The SFE launched its silver contract in May of this year.

In India meantime, which reclaimed its traditional place as the world's biggest gold bullion buying nation in the second quarter, Rupee gold prices hit a fresh all-time high of Rs 31850 per 10 grams, according to local reports.

Euro gold bullion prices remained within 2.5% of their all-time high se hit last September, while on the currency markets, the Euro climbed back above $1.26 in Tuesday's Asian session, after ECB chief Mario Draghi reportedly said he would be comfortable with his institution buying government bonds of up to three years in maturity.

"[Draghi] considers that buying medium-term bonds of three years on the secondary markets is not money creation," said French MEP Jean-Paul Gauzès, who sits on the Economic and Monetary Affairs Committee, before which Draghi appeared yesterday.

"Since in effect those debts will be due very quickly and the funds will be put back into the circuit...he said for example three years is OK, 15 years no."

The ECB is due to make its latest policy announcement this Thursday, followed by a press conference with Draghi.

"We have to be very careful that we don't raise false expectations," warned German finance minister Wolfgang Schaeuble, speaking to Deutschlandfunk radio yesterday.

"It has to remain very clear, state debt can't be financed through monetary policy. Therefore we can't have a decision...that's not covered by the ECB mandate."

Small businesses in Spain meantime are facing the highest borrowing costs in four years – while those in Germany are paying record low interest rates – the Financial Times reports, citing ECB data published Monday.

"The fragmentation [of the Eurozone] is getting worse," says David Riley, head of sovereign ratings at ratings agency Fitch.

"If this trend gains even greater momentum we'll face a fundamental reordering of the Eurozone. It undercuts the whole rationale of the Euro, and could eventually make it easier for it to break up."

"In such a difficult phase these [struggling] countries deserve our solidarity and that we root for them to overcome their difficulties," German chancellor Angela Merkel told a crowd of beer drinkers in a tent near Munich yesterday.

"[But] we have [also] to press for reforms in other countries even if they sometimes say we're hardline...it's not enough just to keep muddling through."

Only a quarter of Germans however think Greece should remain in the Euro, according to poll results published by the FT earlier this week. Bank of America Merrill Lynch has explored the option of filling trucks with cash and driving them to Greece to help clients keep their businesses running in the event of a Greek Euro exit, while Ford has configured its computer systems to accept a new Greek currency, according to the New York Times.

Rating agency Moody's meantime has changed its outlook for the European Union's Aaa credit rating from 'stable' to 'negative'.

"The negative outlook on the EU's long-term ratings reflects the negative outlook on the Aaa ratings of the member states with large contributions to the EU budget," said a statement from Moody's, adding that Germany, France, the UK and the Netherlands account for 45% of EU budget revenue.

"Moody’s believes that it is reasonable to assume the same probability of default by the EU on its debt obligations as the highest rated key members states' probability of default."

In July, Moody's put Germany and the Netherlands on negative outlook.

In South Africa, four people were injured after police and security guards fired tear gas and rubber bullets at sacked gold mining workers who were trying to prevent colleagues from working at Gold One's Modder East mine, Reuters reports.

In the separate dispute at the Gold Fields KDC East mine, this afternoon will see a mass meeting aimed at getting 12,000 people back to work.

Thirty-four striking platinum workers were shot dead last month during a dispute at Lonmin's Marikana platinum mine.

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