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
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

Comex Gold Options Expiry Could See Gold Price Push to $1800

Commodities / Gold and Silver 2012 Nov 27, 2012 - 10:20 AM GMT

By: Ben_Traynor

Commodities

THE DOLLAR gold price fell below $1750 an ounce Tuesday morning, though it remained near to where it started the week, as stock markets recovered yesterday's losses following news of a deal on Greece's debt burden.

"We continue to be bullish so long as gold holds above the $1705 low from mid-November," says the latest technical analysis from Scotia Mocatta.


Over in New York, the difference between bullish and bearish contracts held by Comex gold futures and options traders, the so-called speculative net long, rose for the second week running in the week ended last Tuesday, data published last night by the Commodity Futures Trading Commission show.

"Based on the rally across metals last week, that speculative length is most likely to have picked up substantially [since last Tuesday]," says Standard Bank commodities strategist Walter de Wet.
Comex gold options expire later on Tuesday.

"For calls, the bulk of open interest [OI] rests at the $1800 strike, with more than 3.2 million ounces," says a note from UBS.

"With OI so high, could today be the day that gold gravitates closer to the much coveted $1800 level?"

Over in India, traditionally the world's biggest source of private gold demand, the Rupee regained some ground against the Dollar Tuesday, but remained near two-month lows, with Rupee gold prices near two-month highs.

"There are no [gold] buyers at these levels," says Mayank Khemka, managing director at New Delhi bullion wholesaler Khemka Group.

"There are a few investors who are selling and booking profits."

Silver meantime also edged lower this morning, though it remained above $34 an ounce, as other industrial commodities were broadly flat.

Eurozone finance ministers agreed early on Tuesday to amend the timetable for reducing Greece's debt-to-GDP ratio. Greece is now expected to bring the ratio down to 124% by 2020, up from the previous target of 120%. An additional target of "substantially lower than 110%" has been set for 2022, while by 2016 Greece should aim for an interim target of 175%.

International Monetary Fund chief Christine Lagarde called previously for there to be no movement in the deadline or target, arguing that instead Greece's debt burden should be reduced by imposing further losses on creditors.

In addition, a Eurogroup statement referred to the possibility of Greece buying back some of its debt currently trading below par value, a measure Germany has advocated.

"If this is the route chosen," the statement said, "any tender or exchange prices are expected to be no higher than those at the close on Friday 23 November 2012."

The deal also included a possible reduction of the interest rate Greece pays on bailout loans, as well as a 10 year suspension of such payments, although these measures are subject to how much progress is made on reforms.

"The Eurogroup expects to be in a position to formally decide on the disbursement [of Greece's next tranche of bailout funding] by 13 December," the Eurogroup statement said.

On the currency markets the Euro edged lower against the Dollar Tuesday morning, as gold and silver also eased slightly in Dollar terms.

"Gold does not appear to be particularly impressed by last night's agreement," says this morning's commodities note from Commerzbank.

"The budget balance and economic growth targets set in the program are very ambitious, and it is questionable whether they will actually be achieved. If not, the Greek debt problems could return to the spotlight more quickly than anticipated."

Greece's economy will shrink by 4.5% next year, following a contraction of 6.3% in 2012, according to the latest Economic Outlook published by the Organisation for Economic Cooperation and Development Tuesday.

"The monetary policy stance should be further eased in many economies," the OECD report says.
"Additional easing is required in the Euro area, Japan and some emerging market economies, including China and India... excessive near-term fiscal consolidation should be avoided."

The OECD has cut its growth forecasts for the UK, predicting a 0.1% contraction for 2012, followed by growth of 0.9% next year – down from 1.9% forecast back in May.

The second estimate of third quarter UK GDP published this morning confirmed the UK economy grew at 1.0% between July and September.

Britain's chancellor George Osborne meantime unveiled his choice of successor to Mervyn King as Bank of England governor Monday. Osborne has appointed current Bank of Canada governor Mark Carney, describing him as "the best for Britain". Carney will take over the role next July.

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