Best of the Week
Most Popular
1. Stock Markets and the History Chart of the End of the World (With Presidential Cycles) - 28th Aug 20
2.Google, Apple, Amazon, Facebook... AI Tech Stocks Buying Levels and Valuations Q3 2020 - 31st Aug 20
3.The Inflation Mega-trend is Going Hyper! - 11th Sep 20
4.Is this the End of Capitalism? - 13th Sep 20
5.What's Driving Gold, Silver and What's Next? - 3rd Sep 20
6.QE4EVER! - 9th Sep 20
7.Gold Price Trend Forecast Analysis - Part1 - 7th Sep 20
8.The Fed May “Cause” The Next Stock Market Crash - 3rd Sep 20
9.Bitcoin Price Crash - You Will be Suprised What Happens Next - 7th Sep 20
10.NVIDIA Stock Price Soars on RTX 3000 Cornering the GPU Market for next 2 years! - 3rd Sep 20
Last 7 days
Trump and Coronavirus Pandemic Final US Catastrophe 2021 - 19th Jan 21
How To Find Market Momentum Trades for Explosive Gains - 19th Jan 21
Cryptos: 5 Simple Strategies to Catch the Next Opportunity - 19th Jan 21
Who Will NEXT Be Removed from the Internet? - 19th Jan 21
This Small Company Could Revolutionize The Trillion-Dollar Drug Sector - 19th Jan 21
Gold/SPX Ratio and the Gold Stock Case - 18th Jan 21
More Stock Market Speculative Signs, Energy Rebound, Commodities Breakout - 18th Jan 21
Higher Yields Hit Gold Price, But for How Long? - 18th Jan 21
Some Basic Facts About Forex Trading - 18th Jan 21
Custom Build PC 2021 - Ryzen 5950x, RTX 3080, 64gb DDR4 Specs - Scan Computers 3SX Order Day 11 - 17th Jan 21
UK Car MOT Covid-19 Lockdown Extension 2021 - 17th Jan 21
Why Nvidia Is My “Slam Dunk” Stock Investment for the Decade - 16th Jan 21
Three Financial Markets Price Drivers in a Globalized World - 16th Jan 21
Sheffield Turns Coronavirus Tide, Covid-19 Infections Half Rest of England, implies Fast Pandemic Recovery - 16th Jan 21
Covid and Democrat Blue Wave Beats Gold - 15th Jan 21
On Regime Change, Reputations, the Markets, and Gold and Silver - 15th Jan 21
US Coronavirus Pandemic Final Catastrophe 2021 - 15th Jan 21
The World’s Next Great Onshore Oil Discovery Could Be Here - 15th Jan 21
UK Coronavirus Final Pandemic Catastrophe 2021 - 14th Jan 21
Here's Why Blind Contrarianism Investing Failed in 2020 - 14th Jan 21
US Yield Curve Relentlessly Steepens, Whilst Gold Price Builds a Handle - 14th Jan 21
NEW UK MOT Extensions or has my Car Plate Been Cloned? - 14th Jan 21
How to Save Money While Decorating Your First House - 14th Jan 21
Car Number Plate Cloned Detective Work - PY16 JXV - 14th Jan 21
Big Oil Missed This, Now It Could Be Worth Billions - 14th Jan 21
Are you a Forex trader who needs a bank account? We have the solution! - 14th Jan 21
Finetero Review – Accurate and Efficient Stock Trading Services? - 14th Jan 21
Gold Price Big Picture Trend Forecast 2021 - 13th Jan 21
Are Covid Lockdowns Bullish or Bearish for Stocks? FTSE 100 in Focus - 13th Jan 21
CONgress "Insurrection" Is Just the Latest False Flag Event from the Globalists - 13th Jan 21
Reflation Trade Heating Up - 13th Jan 21
The Most Important Oil Find Of The Next Decade Could Be Here - 13th Jan 21
Work From Home £10,000 Office Tour – Workspace + Desk Setup 2021 Top Tips - 12th Jan 21
Collect a Bitcoin Dividend Without Owning the King of Cryptos - 12th Jan 21
The BAN Hotlist trade setups show incredible success at the start of 2021, learn how you can too! - 12th Jan 21
Stocks, Bitcoin, Gold – How Much Are They Worth? - 12th Jan 21
SPX Short-term Top Imminent - 12th Jan 21
Is This The Most Exciting Oil Play Of 2021? - 12th Jan 21
Why 2021 Will Be the Year Self-Driving Cars Go Mainstream - 11th Jan 21
Gold Began 2021 With a Bang, Only to Plunge - 11th Jan 21
How to Test Your GPU Temperatures - Running Too Hot - GTX 1650 - Overclockers UK - 11th Jan 21
Life Lesson - The Early Bird Catches the Worm - 11th Jan 21
Precious Metals rally early in 2021 - 11th Jan 21
The Most Exciting Oil Stock For 2021 - 11th Jan 21
Financial Market Forecasts 2021: Navigation in Uncharted Waters - 10th Jan 21
An Urgent Message to All Conservatives, Right-Wingers and Patriots - 10th Jan 21
Despite Signs to the Contrary, Gold Price at or Near Top - 10th Jan 21 -
Ultimate Guide On The 6 Basic Types Of Index Funds - 10th Jan 21
Getting Vaccinated at TESCO - Covid-19 Vaccinations at UK Supermarket Pharmacies and Chemists - 10th Jan 21
Cheers for the 2021 Stock Market and These "Great Expectations" - 9th Jan 21
How to Plan Your Child With Better Education - 9th Jan 21
How To Find The Best Casino - 9th Jan 21
Gold Is Still a Bargain Buy - 8th Jan 20
Gold Price Set to Soar as Hyperinflation Looms - 8th Jan 21
Have Big Dreams? Here's How to Pay for Them - 8th Jan 21
Will the Fed Support Gold Prices in 2021? - 8th Jan 21
Stocks trading strategies for beginners - 8th Jan 21
Who is Buying and Selling Stocks in 2021 - 8th Jan 21
Clap for NHS Heroes 2021 as Incompetent Government Loses Control of Virus Again! - 8th Jan 21

Market Oracle FREE Newsletter

FIRST ACCESS to Nadeem Walayat’s Analysis and Trend Forecasts

Gold's Comex Drop "A Test of Downside Interest"

Commodities / Gold and Silver 2012 Nov 29, 2012 - 10:22 AM GMT

By: Ben_Traynor

Commodities

WHOLESALE gold bullion prices rose to $1725 an ounce Thursday morning, recovering some ground after yesterday's sharp drop during US trading, as stocks, commodities and the Euro also gained and US Treasury bond prices fell.

Silver climbed to $33.87 an ounce, 2.7% up on yesterday's low but 0.9% down on this week so far.


Gold fell more than $30 an ounce in an hour Wednesday, dropping 1.5% in just a few minutes. Gold trading volume on the New York Comex futures and options exchange was more than double its 250 day average, according to Reuters.

Silver also fell Wednesday, with Bloomberg reporting the highest silver Comex volumes since May 2011, although silver rebounded more quickly than gold and was back to within a few cents of its pre-crash level by the time US markets closed.

"[Yesterday's move] puts our bullish view into jeopardy," says Scotiabank technical analyst Russell Browne.

"We shall shift to neutral should support at $1705 be broken."

"We don't think anything has materially changed for gold," adds a note from UBS.

"Essentially the metal is back to where it was trading last week. This is another test of downside buying interest but it also highlights the commitment issues that reside when the market attempts to climb higher."

Online gold exchange BullionVault saw the number of customers adding to their gold holdings triple on Wednesday compared to a day earlier.

The volume of bullion held by gold exchange traded funds meantime rose to a fresh all-time high Wednesday, according to Bloomberg data. The world's biggest gold ETF SPDR Gold Shares (GLD) also saw holdings set a new record at just over 1347 tonnes, a 1.2 tonnes rise from the previous record set a day earlier.

A spokesman for Comex operator CME Group denied yesterday's fall in gold prices was the result of a so-called 'fat finger' trade, a term used to suggest human error. Nor was stop logic triggered, the spokesman added, meaning that the fall was not sufficiently rapid to trigger a pause on CME's electronic Globex trading platform.

"Gold probably saw some additional pressure from technical stop loss selling," CME's mid-session gold report said Wednesday, "as the gold market fell through a series of key chart points."

"Some players blamed the lack of fiscal cliff progress undermined gold and other commodities," added the exchange operator's end –of-day gold market report.

"But if that was the focus of the trade one might have expected gold to have bounced more significantly into the President's White House Press conference."

President Obama yesterday urged voters to use social media website Twitter to put pressure on their representatives in Congress to reach a deal on the so-called fiscal cliff of tax rises and spending cuts currently scheduled for the end of the year.

"We don't have a lot of time here," Obama said. "We've got a few weeks to get this thing done...the Senate's already passed a bill that keeps income taxes from going up on middle class families. Democrats in the House [of Representatives] are ready to vote for that same bill today. If we can get a few House Republicans to agree as well, I'll sign this bill as soon as Congress sends it my way."

Republican Congressman Tom Cole of Oklahoma suggested this week that Republicans should support the bill.

"We all agree that we're not going to raise taxes on people who make less than $250,000," said Cole.

"We should just take them out of this discussion right now, continue to fight against any rate increases, continue to work honestly for a much bigger deal."

Republican House Speaker John Boehner rejected Cole's suggestion Wednesday. Boehner added however that he is optimistic a deal can be agreed.

Treasury secretary Timothy Geithner will today hold talks with Congressional leaders on the subject.

US hedge fund SAC Capital meantime was issued with a so-called Wells Notice by the Securities and Exchange Commission Wednesday, informing SAC that it will face charges over insider trading. 

The world's number four gold producer Gold Fields announced today that it plans to spin off two of its South African mining sites as part of a business restructuring. The two sites, Beatrix and KDC, have both been affected by strike action in recent weeks.

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

6 Critical Money Making Rules