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
Inflation Consequences for the Stock Market, FED Balance Sheet - 24th Oct 21
To Be or Not to Be: How the Evergrande Crisis Can Affect Gold Price - 24th Oct 21
During a Market Mania, "no prudent professional is perceived to add value" - 24th Oct 21
Stock Market S&P500 Rallies Above $4400 – May Attempt To Advance To $4750~$4800 - 24th Oct 21
Inflation and the Crazy Crypto Markets - 23rd Oct 21
Easy PC Upgrades with Motherboard Combos - Overclockers UK Unboxing - MB, Memory and Ryzen 5600x CPU - 23rd Oct 21
Gold Mining Stocks Q3 2021 - 23rd Oct 21
Gold calmly continues cobbling its Handle, Miners lay in wait - 23rd Oct 21
US Economy Has Been in an Economic Depression Since 2008 - 22nd Oct 21
Extreme Ratios Point to Gold and Silver Price Readjustments - 22nd Oct 21
Bitcoin $100K or Ethereum $10K—which happens first? - 22nd Oct 21
This Isn’t Sci-Fi: How AI Is About To Disrupt This $11 Trillion Industry - 22nd Oct 21
Ravencoin RVN About to EXPLODE to NEW HIGHS! Last Chance to Buy Before it goes to the MOON! - 21st Oct 21
Stock Market Animal Spirits Returning - 21st Oct 21
Inflation Advances, and So Does Gold — Except That It Doesn’t - 21st Oct 21
Why A.I. Is About To Trigger The Next Great Medical Breakthrough - 21st Oct 21
Gold Price Slowly Going Nowhere - 20th Oct 21
Shocking Numbers Show Government Crowding Out Real Economy - 20th Oct 21
Crude Oil Is in the Fast Lane, But Where Is It Going? - 20th Oct 21
3 Tech Stocks That Could Change The World - 20th Oct 21
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 Rises Against All Currencies and Looks Set to Challenge All Time Highs

Commodities / Gold & Silver Feb 08, 2008 - 12:39 PM GMT

By: Mark_OByrne

Commodities Gold was up $5.90 to $906.40 per ounce in trading in New York yesterday and silver was up 23 cents to $16.74 per ounce. Gold continued to rally in Asia and surged in early trading in Europe and is up to $915 per ounce. Silver has also surged and is up to $17.02 per ounce.

Gold again rose in the other major currencies and surged to new near record highs in euros and sterling. The London AM Fix at 1030 GMT this morning was at $914 (up from $908.25  yesterday). Gold fixed at £468.96 (up from £465.53 yesterday) and €631.17 (up from €620.516 yesterday). (See table of record highs in various currencies below.)

Gold looks set to challenge last week's $936.80 record high and once again confound the skeptics. Gold is surging in all major currencies as it seems likely that major Central banks are set to cut interest rates in order to prevent a global recession. Even the ECB, the most hawkish and inflation conscious of all the central banks, is faltering in its resolve to target and fight inflation which is negative for the Euro and indeed for all fiat currencies and indeed the asset classes denominated in those currencies.  

‘Tricky Trichet' may not be that tricky after all and may also deserve the helicopter moniker reserved for Easy Al's successor Bernanke. Unlike his predecessor Duisenberg, he has helped fuel the fastest growth in the Euro M3 money supply. It now runs at three times the rate of the ECB's original guidelines, deemed consistent with low inflation. The US money supply is so out of control that in an effort to conceal this the government discontinued publishing M3 money supply growth.

These is also the risk of competitive currency devaluation as central banks  embark on a massive cycle of global money and credit creation.

Inflate or die seems to be the new mantra. This is obviously extremely bullish for the finite currency that is gold and will likely see gold reach it's inflation adjusted high of $2,400 per ounce faster than market participants expect. The macroeconomic climate for gold is possibly the most conducive it has ever been. It is even more conducive than in 1971 when Nixon went of the gold standard. Gold rallied nearly 3,000% in the next 9 years – from a fixed price of $35 per ounce to over $850 per ounce.

Were gold to again rise 3,000% from its lows in 1999 at some $250 per ounce it would reach $7,500. This is possible  especially if politicians and central bankers continue to print and therefore cheapen money in a way akin to a  banana republic.

Gold reaching the inflation adjusted 1980 high of 28 years ago of $2,400 per ounce in the next 5 years seems more than likely in the present macroeconomic, systemic and monetary climate.

There is little in the way of important data today and thus market sentiment may be again gained from equity markets. Continued volatility in international equity markets will increase safe haven demand for gold.

Yesterdays interest rate announcements from the Bank of England and the ECB were as expected. A 25 basis point cut was duly delivered by the MPC and no change from the ECB. Those that were gambling on a larger cut from the BOE exited the market quickly pushing Sterling higher only briefly before being heavily sold for the rest of the afternoon. The slightly less hawkish tone from Trichet triggered heavy selling of the Euro too.

One of the main beneficiaries of the negative sentiment towards the European currencies was of course the US Dollar, which rallied strongly throughout the afternoon session and remained steady through Asian trading. We may be seeing the onset of a period of dollar strength in the FX markets, however investors underlying negativity toward the Greenback could be seen as gold continued to rally despite the rally in the dollar.

The Yen initially strengthened across the board before running in to profit taking post ECB and MPC. The Yen strength trend would appear to be unfolding nicely and even if we do not get a sub 154.00 close against the Euro this week, we should see this soon.

Support and Resistance
Strong support is at $850 to $860. Just because strong support is here does not mean that gold will reach these levels. Indeed there appears to be strong physical demand internationally for gold in the $890's.

Silver is trading at $16.95/70 at 1200GMT.

Platinum remains near new record nominal highs and is trading at $1837/1847 (1200GMT).
The power crisis in South Africa continues. President Mbeki has been forced to apologise for the power outage and is attempting to calm fears. The situation is so serious that some are questioning if South Africa is ready to hold the World Cup in 2010.

Mitsui reported on the huge increase in ounces of platinum held in the platinum ETF. “Interest in the platinum ETF has once again shot up. For the ETF Securities contract, volume stands at 210,646oz as of 4th Feb. Since the 29th Jan, this ETF platform has grown by 57,581oz or 38%. This is similar to the behaviour of investors last November when platinum first went into backwardation.”
$2,000 per ounce platinum should be reached in the coming weeks.

The projected supply demand deficit in platinum will inevitably be higher than expected.

Palladium has also rallied and was trading at $427/433 an ounce (1200GMT).

Historical Record High Prices in GBP, USD and EUR

Date Fix Price £ Price $ Price €
P.M. £371.066 $850.00
10th May 2006 A.M. £378.249 $704.30 €551.052
12th May 2006 A.M. £382.739 $725.75 €561.378
29th Oct 2007 A.M. £385.12 $792.50 €549.851
5th Nov 2007 A.M. £385.391 $802.50 €554.941
5th November 2007 P.M. £386.713 $804.75 €555.728
6th November 2007 A.M. £392.129 $817.56 €562.973
6th November 2007 P.M. £393.767 $822.50 €564.710
7th November 2007 A.M. £400.471 $841.75 €573.555
26th November 2007 A.M. £404.083 $836.25 €562.639
21st December 2007 A.M. £404.677 $803.00 €558.881
21st December 2007 P.M . £408.704 $810.50 €558.881
24th December 2007 A.M. £409.176 $810.25 €562.986
27th December 2007 A.M. £413.628 $822.50 €567.555
27th December 2007 P.M. £416.436 $829.00 €569.251
28th December 2007 P.M. £418.271 $833.75 €567.331
2nd January 2008 A.M. £424.806 $840.75 €573.343
2nd January 2008 M. £427.824 $846.75 €576.452
3rd January 2008 A.M. £438.485 $840.75 €573.343
8th January 2008 A.M. £441.571 $873.25 €593.805
8th January 2008 P.M. £442.032 $873.50 €593.289
9th January 2008 A.M. £452.154 $887.85 €603.528
11th January 2008 A.M. £457.559 $893.75
14th January 2008 A.M. £464.317 $911.50 €612.156

Today's London AM Fix at 1030 GMT this morning was at £468.96, $914 and €631.17.

By Mark O'Byrne, Executive Director

Gold Investments
63 Fitzwilliam Square
Dublin 2
Ph +353 1 6325010
Fax  +353 1 6619664
Gold Investments
Tower 42, Level 7
25 Old Broad Street
United Kingdom
Ph +44 (0) 207 0604653
Fax +44 (0) 207 8770708


Gold and Silver Investments Ltd. have been awarded the MoneyMate and Investor Magazine Financial Analyst of 2006.

Mission Statement
Gold and Silver Investments Limited hope to inform our clientele of important financial and economic developments and thus help our clientele and prospective clientele understand our rapidly changing global economy and the implications for their livelihoods and wealth.
We focus on the medium and long term global macroeconomic trends and how they pertain to the precious metal markets and our clienteles savings, investments and livelihoods. We emphasise prudence, safety and security as they are of paramount importance in the preservation of wealth.

Financial Regulation: Gold & Silver Investments Limited trading as Gold Investments is regulated by the Financial Regulator as a multi-agency intermediary. Our Financial Regulator Reference Number is 39656. Gold Investments is registered in the Companies Registration Office under Company number 377252 . Registered for VAT under number 6397252A . Codes of Conduct are imposed by the Financial Regulator and can be accessed at or from the Financial Regulator at PO Box 9138, College Green, Dublin 2, Ireland. Property, Commodities and Precious Metals are not regulated by the Financial Regulator

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: 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. Past experience is not necessarily a guide to future performance.

All the opinions expressed herein are solely those of Gold & Silver Investments Limited and not those of the Perth Mint. They do not reflect the views of the Perth Mint and the Perth Mint accepts no legal liability or responsibility for any claims made or opinions expressed herein.

Mark O'Byrne Archive

© 2005-2019 - 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