Best of the Week
Most Popular
1.A 'Wicked Rally' in Gold Price Predicted - The_Gold_Report
2.Gold and Silver Bullion Buying Opportunity for 2017? - Nadeem_Walayat
3.The Coming Stock Market Crash and WWIII - Brad_Gudgeon
4.First UK BrExit then Trump, Next BrExit Tsunami Wave to Hit Italy HARD Sunday! - Nadeem_Walayat
5.Trump Sets The Stage For A Huge Gold Rally In 2017 - James Burgess
6.Why We Haven’t Seen Gold Price Rally after Trump Victory - Harry_Dent
7.Silver Bullion Price Buying Opportunity for 2017? - Nadeem_Walayat
8.Trump Stocks Bull Market Furious Rally Towards Dow 20k as Bear Mantra Persists - Nadeem_Walayat
9.Gold Bullion Price Buying Opportunity for 2017? - Nadeem_Walayat
10.Trump's Presidency - Stock Market Crash or Start of New Mega-Trends - Sol_Palha
Last 7 days
Official Warning: Stocks Are Going to Crash - 10th Dec 16
CIA Warns Donald Trump is Putin's Manchurian Candidate! - 10th Dec 16
Gold Fools, US Dollar Bulls and The Long Term Outlook for Both Markets - 10th Dec 16
Stock Market Saeculum 1st Turning Underway - 10th Dec 16
India's Stock Market: Nothing "Random" About It - 9th Dec 16
Gold Futures Selling Exhausting - 9th Dec 16
Cheap Large Icicle Christmas LED Lights Review - B&M Stores - 9th Dec 16
US Interest Rates and the Toughest Man Who Ever Lived - 9th Dec 16
Amazon UK Christmas Shopping Useless Delivery Tracking Warning Alert - 9th Dec 16
Euro-zone Crisis - The Soon To Erupt Euro Experiment - 9th Dec 16
Global Market Perspective 3 Killer Charts, 2 Fast Looks at Politics - 9th Dec 16
Trump Could Fuel A Nuclear Energy Boom In 2017 - 8th Dec 16
Our Future Economy, Jobs, Banking, And Governance – Part2 - 8th Dec 16
Developing Knowledge-Intensive Society and Knowledge Industrial Hub in Kerala - 8th Dec 16
Crude Oil and Gold, Silver Precious Metals Link - 8th Dec 16
Stock Market and the Great Middle Class Revolt Gets Bigger - 8th Dec 16
Protectionist Trump Policies To Crash Dollar, Gold and Bitcoin to Soar - 8th Dec 16
The Jaws of Life : The Most Hated Stocks Bull Market in History! - 8th Dec 16
Infrastructure A Budding Asset Class - 8th Dec 16
Trump Stocks Bull Market Furious Rally Towards Dow 20k as Bear Mantra Persists - 8th Dec 16
More Talk About More Economic Growth and More Globalization - 7th Dec 16
Cracks In US Treasury Bond Market, The Japanese Factor - 7th Dec 16
The Rise of Anti-Establishment Italy - 7th Dec 16
Trump Likely to Drive Another Bump in Stock Market Buybacks — Here’s How to Hedge - 7th Dec 16
World War II and the Origins of American Unease - 7th Dec 16
Online CFD Trading for Traders on a Budget - 7th Dec 16
Silver Bullion Price Buying Opportunity for 2017? - 7th Dec 16
The Imminent Multi-Trillion Dollar Surge In Social Security & Medicare Costs - 7th Dec 16
Gold Bullion Price Buying Opportunity for 2017? - 6th Dec 16
Shariah Gold Standard Approved for $2 Trillion Islamic Finance Market - 6th Dec 16
THE Gold Play for 2017 - 6th Dec 16
Trump Sets The Stage For A Huge Gold Rally In 2017 - 6th Dec 16
BrExit Tsunami Claims Emperor Renzi's Scalp, Counting Down to End of the EU, Next? - 6th Dec 16
Failed EU - Means an Expanded Dictatorship - 6th Dec 16
Crude Oil Prices: "Random"? Hardly - 5th Dec 16
The Coming Stock Market Crash and WWIII - 5th Dec 16
This Past Week in Gold Market - 5th Dec 16
Stock Market Short-Term Correction Underway - 5th Dec 16
If Trump Doesn’t Do This, We Will Have the Great Depression 2.0 - 5th Dec 16
India’s Demonetization Could Be the First Cash Domino to Fall - 5th Dec 16
Our Future Economy, Jobs, Banking, And Governance - 5th Dec 16
Gold and Silver Bullion Buying Opportunity for 2017? - 4th Dec 16
First UK BrExit then Trump, Next BrExit Tsunami Wave to Hit Italy HARD Sunday! - 3rd Dec 16
The 10YR Yield and SPX Stocks Bull Markets - 3rd Dec 16
Gold And Silver – Do Not Expect Much Difference With Trump Compared To Obama - 3rd Dec 16
Gold, Currencies and Markets Critical 61.8% Retracements - 2nd Dec 16
Gold Junior Stocks Q3’16 Fundamentals - 2nd Dec 16
Adventures in Castro’s Cuba - 2nd Dec 16
We Are Putting Off the Inevitable - 2nd Dec 16
Macroeconomic Cycles & Demographics - A Fuse, An Explosive and The Igniting Catalyst - 2nd Dec 16

Free Instant Analysis

Free Instant Technical Analysis


Market Oracle FREE Newsletter

$10000 Gold

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.


© 2005-2016 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

Catching a Falling Financial Knife