Best of the Week
Most Popular
1. Gold vs Cash in a Financial Crisis - Richard_Mills
2.Current Stock Market Rally Similarities To 1999 - Chris_Vermeulen
3.America See You On The Dark Side Of The Moon - Part2 - James_Quinn
4.Stock Market Trend Forecast Outlook for 2020 - Nadeem_Walayat
5.Who Said Stock Market Traders and Investor are Emotional Right Now? - Chris_Vermeulen
6.Gold Upswing and Lessons from Gold Tops - P_Radomski_CFA
7.Economic Tribulation is Coming, and Here is Why - Michael_Pento
8.What to Expect in Our Next Recession/Depression? - Raymond_Matison
9.The Fed Celebrates While Americans Drown in Financial Despair - John_Mauldin
10.Hi-yo Silver Away! - Richard_Mills
Last 7 days
Gold Price Closely Tracks Debt-to-GDP Ratio - 9th Apr 20
Gold, Silver and Rigged Market Socialism - 9th Apr 20
Going to School in Lockdown Britain, Dobcroft Sheffield - 9th Apr 20
Amazon Face Masks to Protect Against Covid-19 Viral Particles N95, FPP2, PM2.5, for Kids and Adults - 9th Apr 20
Is Natural Gas Price Ready For An April Rally? - 8th Apr 20
Market Predictions And The Business Implications - 8th Apr 20
When Will UK Coronavirus Crisis Imrpove - Infections and Deaths Trend Trajectory Analysis - 8th Apr 20
BBC Newsnight Focuses on Tory Leadership Whilst Boris Johnson Fights for his Life! - 8th Apr 20
The Big Short Guides us to What is Next for the Stock Market - 8th Apr 20
USD Index Sheds Light on the Upcoming Gold Move - 8th Apr 20
The Post CoronaVirus New Normal - 8th Apr 20
US Coronavirus Trend Trajectory Forecast Current State - 7th Apr 20
Boris Johnson Fighting for his Life In Intensive Care - UK Coronavirus Crisis - 7th Apr 20
Precious Metals Are About To Reset Like In 2008 – Gold Bugs, Buckle Up! - 7th Apr 20
Crude Oil's 2020 Crash: See What Helped (Some) Traders Pivot Just in Time - 7th Apr 20
Was the Fed Just Nationalized? - 7th Apr 20
Gold & Silver Mines Closed as Physical Silver Becomes “Most Undervalued Asset” - 7th Apr 20
US Coronavirus Blacktop Politics - 7th Apr 20
Coronavirus is America's "Pearl Harbour" Moment, There Will be a Reckoning With China - 6th Apr 20
Coronavirus Crisis Exposes Consequences of Fed Policy: Americans Have No Savings - 6th Apr 20
The Stock Market Is Not a Magic Money Machine - 6th Apr 20
Gold Stocks Crash, V-Bounce! - 6th Apr 20
How Can Writing Business Essay Help You In Business Analytics Skills - 6th Apr 20
PAYPAL WARNING - Your Stimulus Funds Are at Risk of Being Frozen for 6 Months! - 5th Apr 20
Stocks Hanging By the Fingernails? - 5th Apr 20
US Federal Budget Deficits: To $30 Trillion and Beyond - 5th Apr 20
The Lucrative Profitability Of A Move To Negative Interest Rates - Pandemic Edition - 5th Apr 20
Visa Denials: How to avoid it and what to do if your Visa is denied? - 5th Apr 20 - Uday Tank
WARNING PAYPAL Making a Grab for US $1200 Stimulus Payments - 4th Apr 20
US COVID-19 Death Toll Higher Than China’s Now. Will Gold Rally? - 4th Apr 20
Concerned That Asia Could Blow A Hole In Future Economic Recovery - 4th Apr 20
Bracing for Europe’s Coronavirus Contractionand Debt Crisis - 4th Apr 20
Stocks: When Grass Looks Greener on the Other Side of the ... Pond - 3rd Apr 20
How the C-Factor Could Decimate 2020 Global Gold and Silver Production - 3rd Apr 20
US Between Scylla and Charybdis Covid-19 - 3rd Apr 20
Covid19 What's Your Risk of Death Analysis by Age, Gender, Comorbidities and BMI - 3rd Apr 20
US Coronavirus Infections & Deaths Trend Trajectory - How Bad Will it Get? - 2nd Apr 20
Silver Looks Bearish Short to Medium Term - 2nd Apr 20
Mickey Fulp: 'Never Let a Good Crisis Go to Waste' - 2nd Apr 20
Stock Market Selloff Structure Explained – Fibonacci On Deck - 2nd Apr 20
COVID-19 FINANCIAL LOCKDOWN: Can PAYPAL Be Trusted to Handle US $1200 Stimulus Payments? - 2nd Apr 20
Day in the Life of Coronavirus LOCKDOWN - Sheffield, UK - 2nd Apr 20
UK Coronavirus Infections and Deaths Trend Trajectory - Deviation Against Forecast - 1st Apr 20
Huge Unemployment Is Coming. Will It Push Gold Prices Up? - 1st Apr 20
Gold Powerful 2008 Lessons That Apply Today - 1st Apr 20
US Coronavirus Infections and Deaths Projections Trend Forecast - Video - 1st Apr 20
From Global Virus Acceleration to Global Debt Explosion - 1st Apr 20
UK Supermarkets Coronavirus Panic Buying Before Lock Down - Tesco Empty Shelves - 1st Apr 20
Gold From a Failed Breakout to a Failed Breakdown - 1st Apr 20
P FOR PANDEMIC - 1st Apr 20
The Past Stock Market Week Was More Important Than You May Understand - 31st Mar 20
Coronavirus - No, You Do Not Hear the Fat Lady Warming Up - 31st Mar 20
Life, Religions, Business, Globalization & Information Technology In The Post-Corona Pandemics Age - 31st Mar 20
Three Charts Every Stock Market Trader and Investor Must See - 31st Mar 20
Coronavirus Stocks Bear Market Trend Forecast - Video - 31st Mar 20
Coronavirus Dow Stocks Bear Market Into End April 2020 Trend Forecast - 31st Mar 20
Is it better to have a loan or credit card debt when applying for a mortgage? - 31st Mar 20

Market Oracle FREE Newsletter


Gold Turns Higher After Profit Taking Earlier in the Week

Commodities / Gold & Silver Feb 13, 2008 - 08:07 AM GMT

By: Adrian_Ash

Commodities SPOT GOLD PRICES turned higher from this week's 3.3% drop to $897.25 per ounce early Wednesday as European equity markets slipped on news that Eurozone industrial output fell in December.

With Treasury bond prices ticking higher – and London 's FTSE stock index losing 1% for the day – US crude oil futures pushed higher above $92 per barrel.

Copper prices fell at the London Metal Exchange to cap a five-day winning run, while wheat fell back from its sharpest two-day gains since 2003.

Soybean and palm oil hit new all-time highs at the Dalian exchange in China .

"Subject to developments in the oil price and the US Dollar," says Wolfgang Wrzesniok-Rossbach for Heraeus, the German refining group based in Hanau , "we do not rule out [the possibility] that gold has seen its highs for the time being.

"The failed attempt on Monday to reach the most recent peak again could disenchant investors and initially lead to further profit-taking."

But with G7 politicians urging gold sales by the International Monetary Fund (IMF) – and a leftist candidate for the Economic Ministry in Hesse , Germany , now calling for the Bundesbank to follow – "private investors continue to remain on the other side," Wrzesniok-Rossbach adds.

"Demand for investment-gold remained robust this week [despite] more and more profit-taking from private investors happy to book gains at these levels."

Gold futures traded today at the Tocom in Tokyo dropped 2.6% today to equal $902.85 per ounce for Dec. '08 delivery. Recording an AM Fix in London of $905.75 per ounce – some 1.6% below Tuesday morning's Fix – physical Gold also lost 2.4% against the Pound Sterling, despite news that growth in UK earnings has slowed below inflation.

Today brings US retail sales figures for Jan. – expected to show a 0.2% decline – plus the latest US mortgage application data.

The default rate on all existing US mortgages has now reached 7.3%, says the Mortgage Bankers Association, the highest level on record. President Bush will this afternoon sign a $168 billion tax-rebate bill, hoping to stop the current slowdown from becoming a genuine economic slump.

"It certainly will be possible for the Gold Price to spike still higher," reckons David Moore at the Commonwealth Bank of Australia in Sydney . "I think it's premature to say that we've seen the peak. There's still some investor interest in gold."

The latest data on Gold Market futures & options show that, overall, bullish betting shrank 1.3% in the week-ending Feb. 5th. The world's gold-backed trust funds meantime grew by 0.3% – and that makes the volume of metal represented by the ETFs greater than the net long US derivatives position, says Mitsui today.

The switch indicates "how important these investment vehicles are in the sustainability of the gold run," the metals dealer adds. ( But wouldn't you rather actually own real gold instead? Get the facts in this Free Gold Report here... )

Meantime in the market for real physical Gold Bullion today, the early drop below $900 per ounce encouraged inventory buying from Asian jewelers, reports Reuters.

India 's gold imports slumped by 95% in January from the same month in 2007, the Bombay Bullion Association said Tuesday. But while "gold buyers may take long time to adjust to the high and volatile prices," says Rajiv Nair, vice president of Vision Commodities in Dubai , "by the second half of 2008, demand will pick up."

In the fast-growing Middle East , meantime, "jewelry demand is likely to remain stable, but we are now seeing a surge in investment demand due to growing apprehension in the global financial markets," said Ian MacDonald, head of gold and precious metals at the state-owned Dubai Multi Commodities Centre, to the Kuwait Times overnight.

Inflation in Saudi Arabia , the largest economy in the Middle East , rose to 4.1% last year from 2.2% in 2006, driven by a 7% rise in food prices and an 8% increase in housing costs.

Gold demand across the member states of the Gulf Cooperation Council (GCC) rose by one-fifth in 2007 to reach 260 tonnes according to the World Gold Council's local office.

By Adrian Ash

Gold price chart, no delay | Free Report: 5 Myths of the Gold Market
City correspondent for The Daily Reckoning in London and a regular contributor to MoneyWeek magazine, Adrian Ash is the editor of Gold News and head of research at , giving you direct access to investment gold, vaulted in Zurich , on $3 spreads and 0.8% dealing fees.

(c) BullionVault 2008

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.

Adrian Ash 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

6 Critical Money Making Rules