Best of the Week
Most Popular
1.Canada Real Estate Bubble - Harry_Dent
2.UK House Prices ‘On Brink’ Of Massive 40% Collapse - GoldCore
3.Best Cash ISA for Soaring Inflation, Kent Reliance Illustrates the Great ISA Rip Off - Nadeem_Walayat
4.Understanding true money, Pound Sterling must make another historic low, Euro and Gold outlook! - Marc_Horn
5.5 Maps That Explain The Modern Middle East - GEORGE FRIEDMAN
6.Gold Back With A Vengeance As Bitcoin Bubble Bursts - OilPrice_Com
7.Gold Summer Doldrums - Zeal_LLC
8.Crude Oil Trade & Nasdaq QQQ Update - Plunger
9.Gold And Silver – Why No Rally? Lies, Lies, And More Lies - Michael_Noonan
10.UK Election 2017 Disaster, Fake BrExit Chaos, Forecasting Lessons for Next Time - Nadeem_Walayat
Last 7 days
Why Surging UK Household Debt Will Cause The Next Crisis - 27th Jul 17
Reconciling the US Dollar Outlook with the Super Bullish Gold and Silver COTs - 26th Jul 17
Last Week’s Rally in Gold Stocks Erased - 26th Jul 17
Dollar, Bitcoin, Markets - Is There A New Flight To Safety? - 26th Jul 17
Central Banks ARE The Crisis - 26th Jul 17
Iran: Public Image Versus Historical Reality - Part 1: An Abridged History to the 20th Century - 26th Jul 17
Trump Fails To Understand One Critical Thing—Our Trade Partners Have Options, Too - 26th Jul 17
Stock Market and Gold Stocks Trend Forecast Update - 25th Jul 17
Saving Illinois: Getting More Bang for Its Bucks - 24th Jul 17
3 Stocks Sectors That Will Win in The Fed’s Great Balance-Sheet Unwind - 24th Jul 17
Activist Investors Are Taking Over Wall Street, Procter and Gamble Might Never Remain the Same - 24th Jul 17
Stock Market Still on Track - 24th Jul 17
Last Chance For US Dollar To Rally - 24th Jul 17
UK House Prices Momentum Crash Warns of 2017 Bear Market - Video - 22nd Jul 17
Crude Oil, Gold, ETFs & more: Pro-grade Market Forecasts - 22nd Jul 17
Warning: The Fed Is Preparing to Crash the Financial System Again - 21st Jul 17
Gold / Silver Shorts Extreme - 21st Jul 17
GBP/USD Bearish Factors - 21st Jul 17
Gold Hedges Against Currency Devaluation and Cost Of Fuel, Food, Beer and Housing - 21st Jul 17
Is It Worth Investing in Palladium? - 21st Jul 17
UK House Prices Momentum Crash Threatens Mini Bear Market 2017 - 21st Jul 17
The Fed May Show Trump No Love - 20th Jul 17
The 3 Best Asset Classes To Brace Your Portfolio For The Next Financial Crisis - 20th Jul 17
Gold Stocks and Bonds - Preparing for THE Bottom - 20th Jul 17
Millennials Can Punt On Bitcoin, Own Safe Haven Gold For Long Term - 20th Jul 17
Trump Has Found A Loophole To Rewrite Trade Agreements Without Anyone’s Permission - 20th Jul 17
Basic Materials and Commodities Analysis and Trend Forecasts - 20th Jul 17
Bitcoin PullBack Is Over (For Now): Cryptocurrencies Gain Nearly A 50% In Last 48 Hours - 19th Jul 17
AAPL's 6% June slide - When Prices Are Falling, TWO Numbers Matter Most - 19th Jul 17
Discover Why A Major American Revolution Is Brewing - 19th Jul 17
iGaming – Stock Prices - 19th Jul 17

Market Oracle FREE Newsletter

Crude Oil, Gold, ETFs & more: Pro-grade Market Forecasts

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

© 2005-2017 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