Best of the Week
Most Popular
1.SNP Offers Labour Deadly Death Embrace Alliance, Holding England to Ransom, Destroy UK From Within - Nadeem_Walayat
2.Gold And Silver – Most Widely Used Currency In Western World? Stupidity - Michael_Noonan
3.Election Forecast 2015 - Coalition Economic Recovery vs Labour Collapse - Nadeem_Walayat
4.Election Forecast 2015 - Debates Boost Labour Into Opinion Polls Seats Lead - Nadeem_Walayat
5.Why are Interest Rates So Low? Ben Bernanke, Confused as Ever, Starts His Own Blog to Prove It - Mike_Shedlock
6.Leaders Debate Election 2015 - Natalie Bennett Green Party Convincing Anti-Austerity More Debt Argument - Nadeem_Walayat
7.Labour Economic Collapse vs Coalition Recovery - UK Election Forecast 2015 - Video - Nadeem_Walayat
8.China’s Stock Market Mania; How High can Red-chips Fly? - Gary_Dorsch
9.Gold and Misery, Strange Bedfellows - 31st Mar 15 - Dan_Norcini
10.Ed Miliband Debate Election 2015 Analysis - Labour Spending, Debt and Economic Collapse - Nadeem_Walayat
Last 5 days
One Stock Market Where You Haven't Missed the Bull Market Boom Yet - 26th Apr 15
Migrant Crisis - Europe Has Completely Lost It - 26th Apr 15
What Obama's First-Ever Energy Review Missed - 26th Apr 15
Sheffield Hallam Election Battle 2015, School Places Crisis, Can Nick Clegg Win? - 26th Apr 15
Stocks Bull Market Looks to Resume - 25th Apr 15
Gold And Silver - The U.S. Is A Corporation. Precious Metals Stand In The Way - 25th Apr 15
When the Nuclear Money Option Fails - 25th Apr 15
The War on Cash Special Report - 25th Apr 15
China Economic Slowdown Story - Why “Didi Dache” Is a Phrase You Need to Know - 25th Apr 15
The Trans-Pacific Partnership and the Death of the Republic - 25th Apr 15
Stock Splitting Caused the Stock Market Crash - 25th Apr 15
China Stock Market Parabolic Mania’s Global Risk - 24th Apr 15
What Will Happen to You When the U.S. Dollar Collapses? - 24th Apr 15
Why 2 of U.S. Dollar's Recent Bottoms Have 1 Thing In Common - 24th Apr 15
UK Economy Debt Timebomb Will Explode After Election - 24th Apr 15
Are Gold Stocks the Cheapest Ever? - 24th Apr 15
God, the Stock Market and Pascal's Wager - 24th Apr 15
Greedy Insurers Are in for a Nasty Surprise – Positioning You for Big Profits - 24th Apr 15
Four Things Missing From Obama’s First-Ever Energy Review - 24th Apr 15
How to Grow a Regenerative Medicine Industry - 23rd Apr 15
Stocks and Bonds Seven Year of Negative Returns; Fraudulent Promises - 23rd Apr 15
The Existential Danger To The Euro Is Elections - 23rd Apr 15
Stock Market No Clear Direction As Investors React To Quarterly Earnings Releases - 23rd Apr 15
Is China The Next United States? - 23rd Apr 15
U.S. Oil Glut: How High Can It Go? - 23rd Apr 15
Distorted Financial System Expect Deflation, Inflation And Hyperinflation - 23rd Apr 15
What McDonald’s Corporate Earnings Report Is Really Telling You - 23rd Apr 15
Gold Price Forecast to Become Priceless - 23rd Apr 15
FDIC Plots a Bank Heist Involving YOUR Accounts - 23rd Apr 15
$GOLD Price Year 2007 Again - 23rd Apr 15
Stocks Bubble - The Spread between Stock Prices and GDP is Blowing Out - 23rd Apr 15
Ukraine War - When Did We All Become Murderers? - 23rd Apr 15
Libya Crisis - EU Leaders Are Indicted for Nazi-Style Crimes against Humanity - 22nd Apr 15
Why Alternative Energy Isn’t Taking It on the Chin Despite Low Oil Prices - 22nd Apr 15
Bill Gross - German 10-Year Bunds Short of a Life Time - 22nd Apr 15
How to Profit from the Drop in the Oil Price - 22nd Apr 15
The U.S. Dollar's Move Is More Dangerous than You Think - 22nd Apr 15
Apple Watch Means Apple Will Become Worlds First $1 Trillion Stock - 22nd Apr 15
Half a Stocks Bubble Off Dead Center - 22nd Apr 15
They Said Go to College - Learning to become Debt Slaves - 22nd Apr 15
Best Cash ISA 2015/16, Instant and Fixed Savings Interest Rates, New Flexible Withdrawal / Deposit Rule - 22nd Apr 15
Unsound Banking: Why Most of the World's Banks Are Headed for Collapse - 21st Apr 15
Bitcoin Recent Low Price Volatility Might Be Deceptive - 21st Apr 15
Currency Wars Back As Russia Buys Gold - One Million Ounces in March Alone - 21st Apr 15
The Greece 'Grexit' Issue and the Problem of Free Trade - 21st Apr 15
Why Europe Lets People Drown - 21st Apr 15
Wealth Destruction for the 99.9 Percent - 21st Apr 15
SNP Publish England's Suicide Note as Pollsters Still Forecast Labour-SNP Election Disaster - 21st Apr 15
Characteristics of Extremely Over-Indebted Economies - 21st Apr 15
Trader Education Week -- a Free Event to Help You Learn to Spot Trading Opportunities - 21st Apr 15
Gold & Silver Alert: Silver Stocks’ Signal - 20th Apr 15
Now is the Time to Buy Resource Stocks, Especially Gold Equities - 20th Apr 15
DJ Transportation & Utility Averages Suggest Stocks Bull Market Is Over - 20th Apr 15
Crude Oil Price Bull Market Hope - 20th Apr 15
Stock Market Bears Get Slaughtered Despite Greece Counting Down to Grexit Financial Armageddon - 20th Apr 15
The Rise of the Paper Machines - 20th Apr 15
Gold and Silver Inflection Point - 20th Apr 15
SP500: A Butcher's Stock Market (Chop Chop Chop) - 20th Apr 15
Are Stock Market Bears Slowly Gaining Control? - 20th Apr 15
Sugar Commodity Price Bear Rally - 19th Apr 15
Avoid the Spread of the Stock Market "China Syndrome" - 19th Apr 15
Stock Market Going Nowhere Fast - 19th Apr 15
An Easy Way to Profit From the Two Biggest Trends in the Stock Market - 19th Apr 15
No Scripture Is Divine, Authentic and Beyond the Creation of the Human Brain - 19th Apr 15

Free Instant Analysis

Free Instant Technical Analysis


Market Oracle FREE Newsletter

The War on Cash!

Gold and Silver Fall While Stock Markets Hit 5-Year Highs

Commodities / Gold and Silver 2013 Jan 28, 2013 - 11:15 AM GMT

By: Ben_Traynor

Commodities

THE U.S. DOLLAR gold price extended its losses from last week Monday, dipping to a near-three-week low below $1655 per ounce during London's morning trading, as stock markets ticked higher, with the FTSE 100 hitting its highest level since May 2008.

The S&P 500 meantime climbed above 1500 last week for the first time since December 2007.


Silver this morning dropped below $31 an ounce to hit a two-week low, while other commodities were broadly flat and US Treasurie gained.

Last week saw spot gold fall 1.5%, while silver was down 2.1%.

"It seems that a number of safe haven refuges like gold, the Japanese Yen, US Treasury bonds, and the Swiss Franc have all been under pressure lately," says Ed Meir, metals analyst at brokerage INTL FCStone.

"Investors [are becoming] more comfortable parking their capital in riskier asset classes like the Euro and equity markets."

The Swiss Franc is still "too strong", Switzerland's economy minister Johann Schneider-Ammann said Saturday, adding that he "hopes it will devalue further".

"The Franc is still very strong," Swiss finance minister Eveline Widmer-Schlumpf told reporters at the World Economic Forum in Davos the same day.

In September 2011, the Swiss National Bank announced a peg of SFr1.20 to the Euro in September 2011, following several years of Franc appreciation. The Swiss currency has weakened in recent weeks against the Euro, trading above SFr1.24 this morning, as the Euro has strengthened on the currency markets.

On Friday, SNB chairman Thomas Jordan told Davos he expects further weakening of the Franc.

A campaign to force a referendum on Switzerland repatriating all its foreign-vaulted gold bullion and increasing its gold reserves is nearing its target of 100,000 signatures.

Britain's chancellor George Osborne would prefer to see the bank of England continue with its current inflation target policy framework rather than shift to targeting a nominal level of economic output, according to a report in the Financial Times Monday.

In a speech last month, Bank of Canada governor Mark Carney, who takes over at the Bank of England this summer, suggested a role for so-called nominal GDP targeting. When he spoke in Davos on Saturday however Carney "went out of his way not to mention nominal GDP", the FT reports, but instead praised "flexible inflation targeting".

Since the start of this month, Sterling has depreciated 4% against the Dollar and more than 5.5% against the Euro, which climbed to a 14-month high against the Pound this morning.

The gold price in Sterling meantime is up more than 2% from where it started January, while the Dollar gold price is flat on the month and gold in Euros is down 3%.

The so-called speculative net long position in Comex gold futures and options – calculated as the difference between 'bullish' long and 'bearish' short contracts held by noncommercial traders – ticked higher in the week ended last Tuesday, weekly data published Friday by the Commodity Futures Trading Commission show.

The world's biggest gold exchange traded fund meantime continued to see outflows of bullion held to back its shares on Friday. The volume of gold held by SPDR Gold Trust (GLD) fell by nearly two tonnes from a day earlier to 1329.9 tonnes, its lowest level since the start of October.

The world's largest silver ETF also continued to see outflows, with the volume of silver held by iShares Silver Trust (SLV) falling to 10,468.8 tonnes Friday – though this was still more than 300 tonnes above where it was 10 days previously following strong inflows.

"For the first time in eight weeks, ETFs' commitment to silver has wavered," says Standard Bank commodities strategist Marc Ground.

Kazakhstan and Russia both added to their gold reserves last month, International Monetary Fund figures show. Kazakhstan's reserves rose 1.7% to 115.3 tonnes, the figures show, while Russia grew by 2.1% to 957.8 tonnes.

Russia's central bank intends to continue buying gold, its first deputy chairman Alexei Ulyukayev said earlier this month, although he denied there is a target for gold to make up 10% of reserves.

Despite a flurry of new regulations to control "speculation" in Vietnam's gold market, unlicensed trading of bullion continues, according to local press reports.

Some dealers and consumers have switched to trading rings and other jewelry pieces instead of gold bullion bars. This weekend, the State Bank said it will become the sole point for import and export of gold.

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

© 2005-2015 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