Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
Nvidia Numero Uno in Count Down to President Donald Pump Election Victory - 5th Nov 24
Trump or Harris - Who Wins US Presidential Election 2024 Forecast Prediction - 5th Nov 24
Stock Market Brief in Count Down to US Election Result 2024 - 3rd Nov 24
Gold Stocks’ Winter Rally 2024 - 3rd Nov 24
Why Countdown to U.S. Recession is Underway - 3rd Nov 24
Stock Market Trend Forecast to Jan 2025 - 2nd Nov 24
President Donald PUMP Forecast to Win US Presidential Election 2024 - 1st Nov 24
At These Levels, Buying Silver Is Like Getting It At $5 In 2003 - 28th Oct 24
Nvidia Numero Uno Selling Shovels in the AI Gold Rush - 28th Oct 24
The Future of Online Casinos - 28th Oct 24
Panic in the Air As Stock Market Correction Delivers Deep Opps in AI Tech Stocks - 27th Oct 24
Stocks, Bitcoin, Crypto's Counting Down to President Donald Pump! - 27th Oct 24
UK Budget 2024 - What to do Before 30th Oct - Pensions and ISA's - 27th Oct 24
7 Days of Crypto Opportunities Starts NOW - 27th Oct 24
The Power Law in Venture Capital: How Visionary Investors Like Yuri Milner Have Shaped the Future - 27th Oct 24
This Points To Significantly Higher Silver Prices - 27th Oct 24
US House Prices Trend Forecast 2024 to 2026 - 11th Oct 24
US Housing Market Analysis - Immigration Drives House Prices Higher - 30th Sep 24
Stock Market October Correction - 30th Sep 24
The Folly of Tariffs and Trade Wars - 30th Sep 24
Gold: 5 principles to help you stay ahead of price turns - 30th Sep 24
The Everything Rally will Spark multi year Bull Market - 30th Sep 24
US FIXED MORTGAGES LIMITING SUPPLY - 23rd Sep 24
US Housing Market Free Equity - 23rd Sep 24
US Rate Cut FOMO In Stock Market Correction Window - 22nd Sep 24
US State Demographics - 22nd Sep 24
Gold and Silver Shine as the Fed Cuts Rates: What’s Next? - 22nd Sep 24
Stock Market Sentiment Speaks:Nothing Can Topple This Market - 22nd Sep 24
US Population Growth Rate - 17th Sep 24
Are Stocks Overheating? - 17th Sep 24
Sentiment Speaks: Silver Is At A Major Turning Point - 17th Sep 24
If The Stock Market Turn Quickly, How Bad Can Things Get? - 17th Sep 24
IMMIGRATION DRIVES HOUSE PRICES HIGHER - 12th Sep 24
Global Debt Bubble - 12th Sep 24
Gold’s Outlook CPI Data - 12th Sep 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Gold Still Stuck in a Trading Range

Commodities / Gold and Silver 2013 Jan 14, 2013 - 06:33 AM GMT

By: Ben_Traynor

Commodities

WHOLESALE gold bullion prices hovered just below $1670 an ounce Monday morning in London, having regained some ground after Friday's losses, while stocks and commodities also ended the morning up on the day, while the Euro and the Chinese Yuan made gains against the Dollar.

"We saw a fair amount of buying from China [this morning] after gold prices fell last Friday," says Peter Tse, Hong Kong-based director at bullion bank Scotia Mocatta.


"The Yuan hit a record high [against the Dollar], making local prices cheap...[but] gold is still range bound and I wouldn't put too much on this morning's rise."

"Gold needs to sustain the close above the $1665 area to signal a move toward the $1695 area," adds a note from Barclays Capital, whose analysts see support for gold at $1640 and resistance at $1680.

Open interest in gold futures and options on the New York Comex recovered last Tuesday compared to the previous Monday, climbing 3.4%, the weekly Commitments of Traders report from the Commodity Futures Trading Commission shows. The CFTC reported its lowest open interest in over three years for New Year's Eve.

The so-called speculative net long however fell last Tuesday to its lowest level since August. The spec net long measures the difference between the number of 'bullish' long and 'bearish' short contracts held by traders classified as 'noncommercial', such as hedge funds.

"The fact that speculative financial investors are continuing to withdraw from the gold market is doubtless partly to blame for the gold price’s failure to make any substantial recovery," says a note from Commerzbank.

"More and more 'shaky hands' are getting out of the gold market...[but] their current skepticism may offer a springboard for a sharp price rise in future were sentiment among money managers to shift again."

Like gold, silver also recovered some of Friday's losses this morning, climbing to $30.77 an ounce by the end of the morning in London.

The US Treasury will not mint a $1 trillion platinum coin as a way of getting round the federal debt ceiling, a spokesman said Saturday.

Various commentators, including Nobel Prize-winning economist Paul Krugman, have proposed in recent weeks that the Treasury could use an existing law, designed to allow flexibility in supply to meet demand from platinum coin collectors, to produce such a coin without needing to seek the approval of Congress. The coin could then be deposited with the Federal Reserve, according to the proposal, and its face value credited to the Treasury's account.

"Neither the Treasury Department nor the Federal Reserve believes that the law can or should be used to facilitate the production of platinum coins for the purpose of avoiding an increase in the debt limit," said Saturday's statement from Treasury spokesman Anthony Coley.

"Congress can pay its bills or they can fail to act and put the nation into default," added White House spokesman Jay Carney.

"When congressional Republicans played politics with this issue last time, putting us at the edge of default, it was a blow to our economic recovery, causing our nation's credit rating to be downgraded."

The Euro meantime touched its highest level against the Dollar in almost eleven months Monday when it briefly traded above $1.34.

German finance minister Wolfgang Schaeuble said Friday that the Eurozone is "over the worst of the crisis", a day after European Central Bank president Mario Draghi said confidence in financial markets has "significantly improved".

Elsewhere on the currency markets, the Yen fell to its lowest level against the Dollar since June 2010 this morning, after Japan's prime minister prime minister Shinzo Abe said he wanted the next Bank of Japan governor to be someone "who can push through bold monetary policy".

Following his election victory last month, Abe said his government and the central bank will issue a joint statement ahead of its policy meeting later this month, in which they will set a 2% inflation target – double the current targeted rate. The most recent data show Japanese inflation running below zero, indicating price deflation.

China's State Administration of Foreign Exchange (SAFE) announced Monday that it has created a new unit tasked with finding new investments to diversify China's $3.31 trillion reserves, though it did not add what such investments might be.

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 2013

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.

Ben Traynor Archive

© 2005-2022 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