Best of the Week
Most Popular
1.UK House Prices Momentum Crash Threatens Mini Bear Market 2017 - Nadeem_Walayat
2.Perfect Storm - This Fourth Turning has Over a Decade of Continuous Storms to Come - James_Quinn
3.UK House Prices Momentum Crash Warns of 2017 Bear Market - Video - Nadeem_Walayat
4.Billionaire Investors Backing A Marijuana Boom In 2017 - OilPrice_Com
5.Emerging Markets & Basic Materials Stocks Breaking Out Together - Rambus_Chartology
6.Global Currency Reserve At Risk - Jim_Willie_CB
7.Gold and Silver: Your Stomach Is Probably Wrenching Right Now - The_Gold_Report
8.Warning: The Fed Is Preparing to Crash the Financial System Again - Graham_Summers
9.Basic Materials and Commodities Analysis and Trend Forecasts - Rambus_Chartology
10.Discover Why A Major American Revolution Is Brewing - Harry_Dent
Last 7 days
You Are Being Lied To About “Low” Gold Demand - 19th Aug 17
This is Why Cocoa's Crash Was a Perfect Setup - 19th Aug 17
Gold, Silver Consolidate On Last Weeks Gains, Palladium Surges 36% YTD To 16 Year High - 19th Aug 17
North Korea Is Far From Being Irrational… It Has A Plan - 18th Aug 17
US Civil War - FUNCTIONAL ILLITERATES TRYING TO ERASE HISTORY - 18th Aug 17
Bitcoin Hits New All-Time High Over $4,400 As It Catches Paypal In Total Market Cap - 17th Aug 17
3 Psychological Ingredients behind Great Web Content - 17th Aug 17
The War on Cash - Rogoff, Orwell and Kafka - 17th Aug 17
The Stock Market Guns of August, Trade Set-Up & Removing your Rose Tinted Glasses - 16th Aug 17
Stocks, Bonds, Interest Rates, and Serbia, Camp Kotok 2017 - 16th Aug 17
U.S. Stock Market: Sunrise ... Sunset - 16th Aug 17
The Next Tech Crash Could Delay Your Retirement by a Decade - 15th Aug 17
Gold and Silver Precious Metals Nearing Breakout - 15th Aug 17
North Korea Showdown: Pivotal Market Turning Point - 15th Aug 17
Tech Stocks DOT COM Bubble Do-Over? - 14th Aug 17
Deep State Conspiracy or Chaos - 14th Aug 17
From the Trans-Atlantic Axis and the Trans-Asian Axis - 14th Aug 17
Stock Market Intermediate Correction Underway - 14th Aug 17
The Islamic State Jihadi Pivot to Asia - 13th Aug 17
Potential Pivots Upcoming for Stocks and Gold - 13th Aug 17
North Korean Chinese Proxy vs US Military Empire Trending Towards Nuclear War! - 12th Aug 17
Gold Stocks Coiled Spring - 12th Aug 17
Neil Howe: The Amazon-Walmart Rivalry Will Determine the Future of Retail - 12th Aug 17
How to Alton Towers Half Price Discount Entry 2017 and 2018, Any Time, No Pre-Booking! - 12th Aug 17
Top 3 Technical Trading Tools Part 2: Relative Strength Index (RSI) - 11th Aug 17
What Makes Women Better Investors - 11th Aug 17
Crude Oil Price Precious Metals Link in August - 11th Aug 17
Influencer Marketing Predictions All Businesses Should Take Into Account - 11th Aug 17
Really Bad Ideas - Government Debt Isn’t Actually Debt - 10th Aug 17
Gold Sees Safe Haven Gains On Trump “Fire and Fury” Threat - 9th Aug 17
Why Is The Stock Market Not Trading On Fundamentals Lately? - 9th Aug 17
USD/CAD - Can We Trust This Breakout? - 9th Aug 17
New Monthly Rebate to Help Reduce Your Trading Costs - 9th Aug 17
Stock Market Divergences Are Now Appearing! - 9th Aug 17

Market Oracle FREE Newsletter

3 Videos + 8 Charts = Opportunities You Need to See - Free

Gold "Headed for Sell Off" Despite Stronger US Coin Sales

Commodities / Gold and Silver 2013 Feb 19, 2013 - 02:32 PM GMT

By: Ben_Traynor

Commodities

WHOLESALE prices for gold bullion hovered above $1610 an ounce during Tuesday morning's London session, having ticked higher in Asian trading following losses yesterday, as stock markets also gained, with the US set to reopen following a holiday yesterday.

Gold is still down around 3% on the month however following last week's drop.

"[Last week's] bearish close should lead to a sell-off to below the $1600 level unfolding in the weeks to come," reckons Axel Rudolph, senior technical analyst at Commerzbank.


"Gold broke the support line since May [last week]," adds a note from technical analysts at Societe Generale, "and the key support region of $1630 which was composed of last summer's congestion...it is therefore set to correct lower."

Silver meantime held just above $30 an ounce throughout this morning, around 4% down on the month, as commodities and US treasury bond prices were also little changed on the day.

Sales of silver American Eagle coins by the US Mint so far this month have already beaten the total for the whole of last February. Gold American Eagle sales for this month meantime are more than double those of the whole of February 2012.

Over in India, the world's biggest gold buying nation, dealers reported light demand for gold Tuesday, as the Rupee failed to recover last week's losses against the Dollar.

Last Friday, the Securities and Exchange Board of India (Sebi) announced that gold exchange traded funds can now invest up to 20% of their assets in gold deposit schemes run by banks, on which the banks would pay them a rate of return.

"Gold certificates issued by banks in respect of investments made by gold ETFs in [Gold Deposit Schemes] shall be held by the mutual funds only in dematerialized form," said a statement from Sebi.

Encouraging people to invest in 'dematerialized' gold rather than own bullion itself is one of the strategies discussed in a Reserve Bank of India report published earlier this month, which looks at ways of reducing the amount of gold India imports.

Over in Vietnam, owners of small amounts of gold could be forced to sell their metal at a discount following a recent decree by that country's central bank, according to local press reports Tuesday.

The State Bank of Vietnam has said only one tael (approx. 1.2 troy ounces) bars produced by the Saigon Jewelry Co. can be bought and sold. In 2011, the SBV announced it had "administratively acquired" SJC. The SBV later announced SJC as the producer of the national gold brand, while also drafting rules on eligibility that excluded many competitors.

In Tehran meantime, a spokesman for Iran's foreign ministry has criticized proposals to ease sanctions on dealing in gold with Iran in return for the country shutting down its Fordow nuclear plant, Reuters reports.

"Lately they have said 'Shut down Fordow, stop enrichment [of uranium], and we will allow gold transactions'," Ramin Mehmanparast said Monday.

"They want to take away the rights of a nation in exchange for allowing trade in gold."

Last year saw Iran become the number one destination for Turkish gold exports, in what came to be dubbed a "gold-for-gas" trade. Bullion dealers elsewhere in the Middle East however have begun to avoid gold bars produced in Turkey amid fears that dealing such bars may be part of efforts to get round US sanctions.

Earlier this month, Turkey's economy minister said his country "is not bound by restrictions imposed by others"

Here in Europe, economic sentiment has improved in both Germany and the Eurozone as a whole this month, according to ZEW survey data published this morning.

"We enter 2013 in a more stable financial environment than in recent years," European Central Bank president Mario Draghi told the European Parliament yesterday.

Draghi added that recent talk of currency wars is "really excessive".

"Most of the exchange rate movements that we have seen were not explicitly targeted, they were the result of domestic macroeconomic policies meant to boost the economy," he said.

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