Best of the Week
Most Popular
1. TESLA! Cathy Wood ARK Funds Bubble BURSTS! - 12th May 21
2.Stock Market Entering Early Summer Correction Trend Forecast - 10th May 21
3.GOLD GDX, HUI Stocks - Will Paradise Turn into a Dystopia? - 11th May 21
4.Crypto Bubble Bursts! Nicehash Suspends Coinbase Withdrawals, Bitcoin, Ethereum Bear Market Begins - 16th May 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.Cathy Wood Ark Invest Funds Bubble BURSTS! ARKK, ARKG, Tesla Entering Severe Bear Market - 13th May 21
7.Stock Market - Should You Be In Cash Right Now? - 17th May 21
8.Gold to Benefit from Mounting US Debt Pile - 14th May 21
9.Coronavius Covid-19 in Italy in August 2019! - 13th May 21
10.How to Invest in HIGH RISK Tech Stocks for 2021 and Beyond - Part 2 of 2 - 18th May 21
Last 7 days
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
CISCO 2020 Dot com Bubble Stock vs 2021 Bubble Tech Stocks Warning Analysis - 6th Oct 21
Precious Metals Complex Searching for a Bottom - 6th Oct 21
FB, AMZN, NFLX, GOOG, AAPL and FANG+ '5 Waves' Speaks Volumes - 6th Oct 21
Budgies Flying Ability 10 Weeks After wings Clipped, Flight Feathers Cut Grow Back - 6th Oct 21
Why Silver Price Could Crash by 20%! - 5th Oct 21
Will China's Crackdown Send Bitcoin's Price Tumbling? - 5th Oct 21
Natural Gas News: Europe Lacks Supply, So It Turns to Asia - 5th Oct 21
Stock Market Correction: One More Spark to Light the Fire? - 5th Oct 21
Fractal Design Meshify S2, Best PC Case Review, Build Quality, Airflow etc. - 5th Oct 21
Chasing Value with Five More Biotech Stocks for the Long-run - 4th Oct 21
Gold’s Century - While stocks dominated headlines, gold quietly performed - 4th Oct 21
NASDAQ Stock Market Head-n-Shoulders Warns Of Market Weakness – Critical Topping Pattern - 4th Oct 21
US Dollar on plan, attended by the Gold/Silver ratio - 4th Oct 21
Aptorum Group - APM - High RIsk Biotech Stocks Buy, Sell, Hold Investing Analysis for the Long-run - 3rd Oct 21
US Close to Hitting the Debt Ceiling: Gold Doesn’t Care - 3rd Oct 21
Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
Original Oculus VR HeadSet Rift Dev Kit v1 Before Facebook Bought Oculus - 3rd Oct 21
Microsoft Stock Valuation 2021 vs 2000 Bubble - Buy Sell or Hold Invest Analysis - 1st Oct 21
How to profit off the Acquisition spree in Fintech Stocks - 1st Oct 21
�� Halloween 2021 TESCO Shopping Before the Next Big Panic Buying! �� - 1st Oct 2
The Guide to Building a Design Portfolio Online - 1st Oct 21
BioDelivery Sciences International - BDSI - High RIsk Biotech Stocks Buy, Sell, Hold Investing Analysis for the Long-run - 30th Sep 21
America’s Revolving-Door Politics Behind the Fall of US-Sino Ties - 30th Sep 21
Dovish to Hawkish Fed: Sounds Bearish for Gold - 30th Sep 21
Stock Market Gauntlet to the Fed - 30th Sep 21
Should you include ESG investments in your portfolio? - 30th Sep 21
Takeda - TAK - High RIsk Biotech Stocks Buy, Sell, Hold Investing Analysis for the Long-run - 29th Sep 21
Stock Market Wishing Away Inflation - 29th Sep 21
Why Workers Are NOT Returning to Work as Lockdown's End - Wage Slaves Rebellion - 29th Sep 21
UK Fuel PANIC! Fighting at the Petrol Pumps! As Lemmings Create a New Crisis - 29th Sep 21
Gold Could See Tapering as Soon as November! - 29th Sep 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Market "Lacking Impetus" to Push Gold Price Higher

Commodities / Gold and Silver 2012 Oct 12, 2012 - 07:42 AM GMT

By: Ben_Traynor

Commodities

Best Financial Markets Analysis ArticleTHE U.S. DOLLAR gold price eased lower Friday morning in London, falling to $1767 an ounce, 0.7% down on the start of the week, while stock markets also ticked lower and commodities were broadly flat.

The silver price fell below $34 an ounce, before trading sideways until lunchtime in London.


"For days now the gold price has been hovering in a narrow trading range around the $1770 per troy ounce mark," says today's Commodities daily note from Commerzbank.

"It clearly lacks the necessary impetus to make further gains just now, the debt crisis in the Eurozone having not escalated any further and the supply risks in South Africa already being largely priced in."

"Investors are very cautious," agrees Andrey Kryuchenkov, analyst at VTB Capital.

"[Gold holdings backing] exchange-traded products are near record highs, long speculative positions [in Comex Gold Futures] are substantial and they showed little reaction to Spain's downgrade [on Wednesday]."

Credit Suisse meantime raised its forecast for the 2013 average gold price Friday to $1840 per ounce, up from $1720, citing the US Federal Reserve's announcement last month that it will continue asset purchases indefinitely as a factor behind the decision.

Over in China, the world's second-largest gold buying nation in 2011, the Yuan has risen to its highest level against the Dollar in 19 years.

The Yuan has been allowed to come close to the upper limit of the trading range maintained by the People's Bank of China two days in a row this week.

"This is something that has been quite remarkable," says Royal Bank of Scotland economist Louis Kuijs in Hong Kong.

"The PBoC has surprised the markets but the appreciation is in line with the observation that policy makers don't seem to be as concerned about the slowdown as some people in the markets and some corporates."

"It would be in Beijing's interest to see [US president] Obama re-elected [in next month's presidential election]," argues Credit Agricole strategist Dariusz Kowalczyk.

"Given [Obama's opponent] Romney's tougher stance on China…the PBoC may be trying to help Obama to make the argument in the next debate that he has succeeded to pressure Beijing into appreciating [China's currency]."

Romney has said that if he wins the presidency on of his first acts would be to label China a currency manipulator.

"Labeling China as a currency manipulator might not help enhance the Dollar's safe haven status," says this morning's note from Standard Bank analyst Steve Barrow, "given that foreign central banks, including China's, own just over a third of [US] Treasuries."

Japan's government meantime has cut its assessment for the country's economic outlook for the third month in a row, the longest stretch of consecutive downward revisions since the five months following the Lehman Brothers collapse four years ago.

US Federal Reserve policymakers have studied Japan's experience over the last two decades "very carefully", Fed vice chair Janet Yellen said yesterday.

"The key lesson that we have drawn about the Japanese experience is that when an economy is faced with a serious downturn that threatens deflation, the most important thing that the central bank can do is to act very aggressively to fight it," Yellen told an audience at a panel discussion held as part of the International Monetary Fund and World Bank annual meetings in Tokyo.

Here in London, Financial Services Authority chairman Adair Turner "believes the Bank of England should consider telling the Treasury it never has to repay some of the £375bn of government debts the Bank acquired through quantitative easing", according to a report by BBC journalist Robert Peston.

"Many conventional economists would regard with horror," Peston adds, "because it would be seen as the government, in effect, printing money to finance public spending."

In a speech last night Turner, who is regarded by some as a front runner to take over from Mervyn King as Bank governor next year, argued that QE is of diminishing benefit and that there is a need for "still more innovative and unconventional policies".

"The ultra-loose monetary policy pursued by central banks is likely to preclude any sharper fall in prices [for gold]," says Commerzbank.

Over in Europe meantime, the European Union was awarded the Nobel Peace prize Friday.

"It is a great honor for all 500 million citizens of Europe, for all the member states, and for all the European institutions," European Commission president Jose Manuel Barroso said this morning.

"Through its transformative power, the EU was able, starting with six countries, to reunite almost all the European continent."

Elsewhere in Europe, German finance minister Wolfgang Schaeuble today rejected calls made yesterday by IMF chief Christine Lagarde to give Greece extra time to implement austerity measures.

Schauble argued that leaders should wait for the report from the so-called 'troika' of international lenders – the European Central Bank, European Commission and IMF – whose representatives have been in Athens this week negotiating with the Greek government on austerity measures.

"There is progress," said one official quoted by the Wall Street Journal Thursday.

"We are close to an agreement and I hope that by the summit next week we will have settled most issues," the official added, referring to the European Union summit that begins next Thursday.

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