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
Global Warming ClImate Change Mega Death Trend - 8th Apr 24
Gold Is Rallying Again, But Silver Could Get REALLY Interesting - 8th Apr 24
Media Elite Belittle Inflation Struggles of Ordinary Americans - 8th Apr 24
Profit from the Roaring AI 2020's Tech Stocks Economic Boom - 8th Apr 24
Stock Market Election Year Five Nights at Freddy's - 7th Apr 24
It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- 7th Apr 24
AI Revolution and NVDA: Why Tough Going May Be Ahead - 7th Apr 24
Hidden cost of US homeownership just saw its biggest spike in 5 years - 7th Apr 24
What Happens To Gold Price If The Fed Doesn’t Cut Rates? - 7th Apr 24
The Fed is becoming increasingly divided on interest rates - 7th Apr 24
The Evils of Paper Money Have no End - 7th Apr 24
Stock Market Presidential Election Cycle Seasonal Trend Analysis - 3rd Apr 24
Stock Market Presidential Election Cycle Seasonal Trend - 2nd Apr 24
Dow Stock Market Annual Percent Change Analysis 2024 - 2nd Apr 24
Bitcoin S&P Pattern - 31st Mar 24
S&P Stock Market Correlating Seasonal Swings - 31st Mar 24
S&P SEASONAL ANALYSIS - 31st Mar 24
Here's a Dirty Little Secret: Federal Reserve Monetary Policy Is Still Loose - 31st Mar 24
Tandem Chairman Paul Pester on Fintech, AI, and the Future of Banking in the UK - 31st Mar 24
Stock Market Volatility (VIX) - 25th Mar 24
Stock Market Investor Sentiment - 25th Mar 24
The Federal Reserve Didn't Do Anything But It Had Plenty to Say - 25th Mar 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

More Banks Bearish on Gold as Price Flatlines in "Spinning Top" Pattern

Commodities / Gold and Silver 2013 Mar 07, 2013 - 01:21 PM GMT

By: Adrian_Ash

Commodities

WHOLESALE PRICES to buy gold held around $1580 per ounce on Thursday morning, trading in a tightening range as Asian and European stock markets crept higher after the Dow stock average recorded another all-time high in New York last night.

The Euro and Sterling both rallied this morning against the Dollar after the ECB and Bank of England both left their key interest rates unchanged.



Silver ticked back below $29.00 per ounce as the broader commodity markets also held flat.

"Gold has flatlined for the last 4 sessions," says Wednesday night's note from bullion bank Scotia Mocatta, "trading in very narrow ranges with very little difference between the open and close.

"This is referred to as a spinning top in candlesticks."

"Gold continues to drift within a $1570-85 range," agrees Moudi Raad at Swiss refinery and finance group MKS.

"On one side we have long term investor liquidation capping the market...while on the other side regional Asian demand continues to support."

Still holding his hedge fund's large position in gold-backed ETF trusts, mining shares and bullion derivatives, John Paulson last month posted an 18% decline in his $900 million Gold Fund reports Bloomberg News, quoting a letter to clients.

The fund has now lost 26% so far in 2013. The gold price is down 5.5%.

"For the first time since 2008," says a new average forecast of $1600 in 2013 from Japanese bank Nomura, "the investment environment for gold is deteriorating.

"Economic recovery, rising interest rates and still benign Western inflation (for now) will likely leave some investors rethinking their cumulative $240bn investment in gold over the past four years."

Cutting its 2013 average price forecast today to $1530, Australia's Macquarie Bank says "Without a compelling new driver, weaker investment demand for gold is likely to continue on reduced tail risks, low inflation, and a lower prospect of more QE."

The Bank of England today failed to expand its Quantitative Easing program, surprising analysts and leaving its purchases of government gilts at £375 billion.

It also left its key interest rate at 0.5%, four years after first taking it to that new all-time low.

"The steep fall in Sterling seen in recent weeks may have made the BoE more cautious," reckons James Knightley at ING.

Prices to buy gold for UK savers fell as Sterling rose back above $1.50 on the news, dropping 0.5% to £1051.60 per ounce on BullionVault's live online market.

"I can't stop thinking that gold is still a good buy here, even though it is losing momentum," says one London bullion-bank dealer in a note.

"Loose monetary policies are still on, sovereign debts issue are still on, the debasement of currency is the easiest and only way out."

Ahead of Friday's much-anticipated US jobless data, new figures today showed a sharp rise in the number of planned lay-offs, rising to a 3-month high of 55,000 in February.

By Adrian Ash
BullionVault.com

Gold price chart, no delay   |   Buy gold online at live prices

Formerly City correspondent for The Daily Reckoning in London and a regular contributor to MoneyWeek magazine, Adrian Ash is the editor of Gold News and head of research at www.BullionVault.com , giving you direct access to investment gold, vaulted in Zurich , on $3 spreads and 0.8% dealing fees.

(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.

Adrian Ash 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