Best of the Week
Most Popular
1.Is the Stocks Bull Market Over? Dow Trend Forecast into End January 2015 - Nadeem_Walayat
2.Gold and Silver Stocks Apocalypse Now, Bear Market Review - Rambus_Chartology
3.NHS Baldrick Plan to Spread Ebola Across UK - Sheffield, Newcastle, Liverpool, London Hospitals - Nadeem_Walayat
4.Ebola Terror Threat Suicide Bio-Weapons Threatens Multiple 9/11's, Global Plague - Nadeem_Walayat
5.Second-Richest Man Says Mortgages Now a "No Brainer" - Dr. Steve Sjuggerud
6.Gold And Silver Still No End In Sight - Michael_Noonan
7.NHS Baldrick Plan to Spread Ebola Across UK - Sheffield, Newcastle, Liverpool, London Hospitals - Nadeem_Walayat
8.The Gold Bug is Set to Bite Back - EWI
9.How Alibaba Could Capitalize on the EBay-PayPal Split - Frank_Holmes
10.The Consequences of the Economic Peace - John_Mauldin
Last 5 days
Focus on Graphite Companies with Green Energy and Technology Strategies - 22nd Oct 14
Crude Oil Price Hitting Bottom - 22nd Oct 14
Evidence of Another Even More Sweeping U.S. Housing Market Bust Already Starting to Appear - 22nd Oct 14
Gold Or Crushing Paper Debt Stocks Crash? - 22nd Oct 14
India Gold Demand Surges 450% and Bank of Russia Demand At 15 Year High - 22nd Oct 14
Bitcoin Stock Exchange Could Be "More Valuable than Alibaba" - 22nd Oct 14
Currency War - How to Profit from a Stronger U.S. Dollar - 22nd Oct 14
Banks Hold Treasuries and Make Loans- 22nd Oct 14
Gold and Silver Timing is Everything - 22nd Oct 14
Don't Get Ruined by These 10 Popular Investment Myths (Part VII) - 22nd Oct 14
Follow the Baby Boom to Biotech Stock Profits - 22nd Oct 14
Copper, Nickel and Zinc Won't Be Cheap for Long - 22nd Oct 14
How Will We Know That the Gold & Silver Price Bottom Is In? - 21st Oct 14
Is Gold as Dead as Florida Hurricanes? - 21st Oct 14
First Swiss Gold Poll Shows Pro-Gold Side In Lead At 45% - 21st Oct 14
The Similarities Between Germany and China - 21st Oct 14
The REAL Reason Why the Stock Market Turned Down - 21st Oct 14
Petrobras is a 'Scheme, Not a Stock' - 21st Oct 14
Stocks Bear Market Indicator Is Off the Mark - 20th Oct 14
Stock Market Ideal Turning Point is at Hand - 20th Oct 14
Investors Quit Complaining, The Environment is Perfect Right Now - 20th Oct 14
Ebola Armageddon Could Trigger a Rebirth in Gold and Silver Prices - 20th Oct 14
Gold vs Euro Risk Due To Possible Return of Italian Lira - Drachmas, Escudos, Pesetas and Punts? - 20th Oct 14
Stocks Rebounded Following Recent Sell-Off, But Will It Last? - 20th Oct 14
U.S. Responsible for West Africa Ebola Outbreak Says Liberian Scientist - 20th Oct 14
Stock Market Intermediate B Wave has Started - 20th Oct 14
Gold Stocks Analysis – FNV, CG, NCM, SBM - 19th Oct 14
Stock Market Primary IV Wave Counter Trend Rally - 19th Oct 14
Gold And Silver - Financial World: House Of Cards Built On Sand - 18th Oct 14
Anatomy of a Stock Market Sell-Off - 18th Oct 14
Why OPEC Has Declared an Oil War on Russia - 18th Oct 14
Gold and Silver Extreme Shorting Peaks - 18th Oct 14
Bitcoin Price Fall to $350? - 18th Oct 14
Tesco Supermarket Crisis Worse To Come as Customers Vanish! - 18th Oct 14
Sheffield Roma Crisis School Place Application's Fraud Perfect Storm - 17th Oct 14
Stock Markets, Commodities and Indicators - 17th Oct 14
“Save Our Swiss Gold ” - Game Changer For Gold? - 17th Oct 14
How to Trade the Ebola Stock Market Sell-Off - 17th Oct 14
When... Not if... Crude Oil Price Drops Below $70 - 17th Oct 14
Either You're The Butcher or You're The Cattle - 17th Oct 14
Gold Benefits from Market Uncertainty - 17th Oct 14
Stock Market Pullback Underway, Euro downside, Commodities - 17th Oct 14
Stock Market Seven Year Cycle and A Correction Ahead? - 17th Oct 14
Three Ways to Play Uranium: Top Stock Picks - 17th Oct 14
America Flirts With Deflation - 17th Oct 14

Free Instant Analysis

Free Instant Technical Analysis


Market Oracle FREE Newsletter

Stocks Epic Bear Market

Gold Price Continues to Consolidate

Commodities / Gold and Silver 2012 Nov 14, 2012 - 08:31 AM GMT

By: Ben_Traynor

Commodities

Best Financial Markets Analysis ArticleU.S. DOLLAR gold prices drifted lower to $1722 an ounce this morning in London, slightly down from last week's close, while stock markets also fell along with US Treasury bonds as US policymakers continue to discuss how to deal with the so-called fiscal cliff.

"Gold is consolidating last week's strong up leg from $1673 to $1739," says the latest technical analysis from bullion dealer Scotiabank.


Silver prices edged down to $32.38 an ounce, also slightly down on last week's close.

Broad commodities were little changed on the day by lunchtime in London, while on the currency markets, the Euro extended yesterday's gains against the Dollar following news that Greece has successfully raised the €5 billion it needs to cover a bond repayment this week.

Forty unions in 23 countries meantime were expected to take part in anti-austerity strikes across Europe today, according to the European Trade Union Confederation.

Police clashed with protestors in Madrid as unions in Spain and Portugal held their first ever coordinated strike, Reuters reports, bringing transport and manufacturing to a halt in many places.

Workers in Belgium, France, Greece and Italy were among those planning stoppages as part of the 'European Day of Action and Solidarity'.

In the US, President Obama plans to propose $1.6 trillion worth of tax rises on corporations and wealthy individuals over the next ten years, the Washington Post reports.

After meeting labor leaders yesterday, Obama will meet business representatives today as he continues his efforts to build support for his plans to avoid the so-called fiscal cliff of tax rises and spending cuts currently due at the start of January.

Democrats have said they would like to see tax cuts on the wealthiest 2% brought in under President Bush expire. Republicans have expressed opposition to this.

As well as letting the Bush tax cuts expire, the government will also need to impose additional taxes, according to US Treasury secretary Timothy Geithner.

"When you take a cold, hard look at the amount of resources you can raise from that top 2% of Americans through limiting deductions," Geithner said yesterday, "you will find yourself disappointed relative to the magnitude of the revenue increases that we need."

"Our short-term outlook continues to call for further gains in gold," says a note from brokerage INTL FCStone, "but we would not be surprised by a rather substantial correction once a fiscal cliff agreement is reached, particularly if the accord is more comprehensive in nature and not a patchwork job that merely kicks the can down the road."

"If we have brinkmanship, and we don't see a resolution, that could put downward pressure on gold," adds Deutsche Bank analyst Daniel Brebner.

Gold prices will "take out $2000 [an ounce]," according to Brebner's colleague Raymond Key, Deutsche bank's global head of precious metals trading, speaking in an interview he gave in Hong Kong where he was attending the annual London Bullion Market Association conference.

"We'll go higher...that's on the view that [the Federal Reserve will] continue to print money."

The minutes of the most recent Fed meeting are published later today.

The Bank of England meantime has lowered its UK growth forecast to 1% for next year, down from its previous forecast of 2%.

In its quarterly Inflation Report published this morning, the Bank said "underlying growth is likely to remain sluggish in the near term".

"The subdued recovery reflects a judgment that the global environment will remain unfavorable," the Bank's governor Mervyn King said.

"We face the rather unappealing combination of a subdued recovery with inflation remaining above target for a while."

Consumer price inflation rose to 2.7% last month, figures published Tuesday show, the 36th month in a row it has been above the Bank's 2% target.

"Inflation is likely to remain above target for the first part of the forecast period," said King this morning.

"Nevertheless, the [Monetary Policy] Committee judges that inflation is likely to fall back in the second half of next year."

The global silver bullion market is expected to remain in surplus this year, with the surplus rising to 300 million ounces, Philip Klapwijk, global head on metals analytics at consultancy Thomson Reuters GFMS said Wednesday.

"We see weaker fabrication demand on two main reasons," said Klapwijk.

"One is industrial fabrication has slowed quite considerably this year, especially in recent months, and we see weakness especially in the electronics field and photovoltaic end users."

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.


© 2005-2014 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

Free Report - Financial Markets 2014