Best of the Week
Most Popular
1.Election Forecast 2015 - Opinion Polls Trending Towards Conservative Outright Win - Nadeem_Walayat
2.UK Solar Eclipse - End Time Sign, Judgement Day, Doomsday! - Nadeem_Walayat
3.Gold And Silver - When Will Precious Metals Rally? Not In 2015 - Michael_Noonan
4.Preparing for the Next Stocks Bear Market - Forecast 2015-2016 - Gary_Savage
5.Is a Stock Market Crash Imminent? - David Eifrig
6.Gold Price Slumps as US Dollar Soars, What's Next? - Nadeem_Walayat
7.US Dollar Forex Pairs and Gold Chartology - Rambus_Chartology
8.Election Forecast 2015: The Day Labour Lost the General Election - Nadeem_Walayat
9.The ECB Should End QE Next Month - EconMatters
10.Silver Price Poised to Surge - Zeal_LLC
Last 5 days
Is the U.S. Headed for a Recession? - 1st Apr 15
Did The Fed Just Admit to Deep Uncertainty About Our Financial Security In Retirement? - 1st Apr 15
Gold Price Flat In Quarter In Dollars But 5% Higher In Pounds - 1st Apr 15
Financial Market Extremes: Expect Consequences - 1st Apr 15
Iceland Ponders Radical Banking Plan to Eliminate Fractional Reserve Lending - 1st Apr 15
How Traded Options Can Power a 300%-Plus Gain on Twitter - 1st Apr 15
You Can’t Afford Not to Invest in This Latest Yesla Technology - 1st Apr 15
Election Forecast 2015 - Coalition Economic Recovery vs Labour Collapse - 1st Apr 15
Bitcoin Price Down Move Still in the Cards - 31st Mar 15
No Body Understands Debt - Living in a Free-Lunch World - 31st Mar 15
Will Gold Win Out Against the US Dollar? - 31st Mar 15
Middle East Balance of Power Matures - 31st Mar 15
Ed Miliband Debate Election 2015 Analysis - Labour Spending, Debt and Economic Collapse - 31st Mar 15
Gold and Misery, Strange Bedfellows - 31st Mar 15
Why are Interest Rates So Low? Ben Bernanke, Confused as Ever, Starts His Own Blog to Prove It - 31st Mar 15
Don’t Celebrate the U.S. Housing Market Recovery Yet - 30th Mar 15
A Middle East Nuclear Holocaust - 30th Mar 15
Peak Gold? – Goldman Sachs Research Warns of Peak Gold Production - 30th Mar 15
With Yemen Burning, Arab Spring II Is Underway - 30th Mar 15
No FED Bets From the BIS - 30th Mar 15
Election Forecast 2015 - Debates Boost Labour Into Opinion Polls Seats Lead - 30th Mar 15
Economic Recovery, Geopolitics and Detergents - 30th Mar 15
U.S. Dollar, Commodities and the Gold Miners GDXJ ETF Analysis - 30th Mar 15
Stock Market Short-term Downtrend - 30th Mar 15
David Cameron Election 2015 Debate Facts Check - Employment, Immigration, Debt & Deficit - 29th Mar 15
Stock Market About Ready to Crash! - 29th Mar 15
Reflections in a Golden Eye - Gold Market Rejection, Repatriation and Redemption - 28th Mar 15
Stock Market Inflection Point - 28th Mar 15
Gold And Silver - What Moved Price? Bab el-Mandeb And Uranus Square Pluto. What?! - 28th Mar 15
Stock Market Investment Parachutes; Do You Have Yours? - 28th Mar 15
Peak Gold Misunderstanding, is Gold About to Run Out? - 28th Mar 15
Deflation Watch: Key U.S. Economic Measures Turn South - 27th Mar 15
The Hard-Earned Truth About Recreational Real Estate - 27th Mar 15
Bitcoin Price Still in Important Territory - 27th Mar 15
Stocks Bear Market Conditions - Index Market Range Warning - 27th Mar 15
BEA Leaves Q4 2014 U.S. GDP Growth Essentially Unchanged at 2.22% - 27th Mar 15
Brazil Economy Victim of Vulgar Keynesianism - 27th Mar 15
Gold to Fuel Silver Price Upleg - 27th Mar 15
Gold and Silver Stocks Will Rise Again! - 27th Mar 15
Risk of ‘World War’ between NATO and Russia on Ukraine as Yemen Bombed - 27th Mar 15
FOMC Minutes Turned The Gold Tide - 27th Mar 15
Sheffield Hallam Election Battle 2015 - Lib Dems Go to War Whilst Labour Sleeps - 27th Mar 15
Gold Effect On Mining & Shale Wasteland - 27th Mar 15
How Stock Investors Should Play the 2016 Presidential Race - 26th Mar 15
MidEast Energy Alert: Why the Crisis in Yemen Could Get Ugly Very Fast - 26th Mar 15
Stock Market Downward Spiral of Dumbness - 26th Mar 15
The Monetary Approach Reigns Supreme - 26th Mar 15
Stock Market Large Gap Down, Despite the Algos' Push Back - 26th Mar 15
Crude Oil Surges, Gold price Spikes as Middle East Tensions Escalate - 26th Mar 15
The U.S. Housing Market Recovery Is Fabricated Optimism - 26th Mar 15
Why Yemen Is The Next Saudi-Iranian Battleground - 26th Mar 15
The Crude Oil Price Crash and China Economic Slow Down - 26th Mar 15
Global Financial Markets Are More Distorted Than Ever Before - 26th Mar 15
One More Stock Market Rally and Then a Huge Drop Expected - 26th Mar 15
Danger Will Robinson - Stock Market Crash Warning - 25th Mar 15
Learn the Basics of Corrective Elliott Waves - 25th Mar 15
Why CNBC Is Hazardous to Your Financial Health! - 25th Mar 15
Will Your Retirement Accounts Survive The Coming Tax Code "Revolution"? - 25th Mar 15
US Dollar - Americas Phoenix - 25th Mar 15
California’s Epic Drought: Only One Year of Water Left! - 25th Mar 15
What’s Wrong With Silver? - 25th Mar 15
SPX Futures Appear Weak. WTIC and Gold May Be at Max Retracement - 25th Mar 15
We’re at the Dawn of a “New Energy Age” - 25th Mar 15
A Very Weak U.S. Economic Recovery - 25th Mar 15
Zero UK CPI Inflation Rate Prompts Deflation Danger Propaganda For Fresh Money Printing - 25th Mar 15

Free Instant Analysis

Free Instant Technical Analysis


Market Oracle FREE Newsletter

US Economy Still on Life Support

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

© 2005-2015 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