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
Stock Market Trend Forecast to Jan 2025 - 2nd Nov 24
President Donald PUMP Forecast to Win US Presidential Election 2024 - 1st Nov 24
At These Levels, Buying Silver Is Like Getting It At $5 In 2003 - 28th Oct 24
Nvidia Numero Uno Selling Shovels in the AI Gold Rush - 28th Oct 24
The Future of Online Casinos - 28th Oct 24
Panic in the Air As Stock Market Correction Delivers Deep Opps in AI Tech Stocks - 27th Oct 24
Stocks, Bitcoin, Crypto's Counting Down to President Donald Pump! - 27th Oct 24
UK Budget 2024 - What to do Before 30th Oct - Pensions and ISA's - 27th Oct 24
7 Days of Crypto Opportunities Starts NOW - 27th Oct 24
The Power Law in Venture Capital: How Visionary Investors Like Yuri Milner Have Shaped the Future - 27th Oct 24
This Points To Significantly Higher Silver Prices - 27th Oct 24
US House Prices Trend Forecast 2024 to 2026 - 11th Oct 24
US Housing Market Analysis - Immigration Drives House Prices Higher - 30th Sep 24
Stock Market October Correction - 30th Sep 24
The Folly of Tariffs and Trade Wars - 30th Sep 24
Gold: 5 principles to help you stay ahead of price turns - 30th Sep 24
The Everything Rally will Spark multi year Bull Market - 30th Sep 24
US FIXED MORTGAGES LIMITING SUPPLY - 23rd Sep 24
US Housing Market Free Equity - 23rd Sep 24
US Rate Cut FOMO In Stock Market Correction Window - 22nd Sep 24
US State Demographics - 22nd Sep 24
Gold and Silver Shine as the Fed Cuts Rates: What’s Next? - 22nd Sep 24
Stock Market Sentiment Speaks:Nothing Can Topple This Market - 22nd Sep 24
US Population Growth Rate - 17th Sep 24
Are Stocks Overheating? - 17th Sep 24
Sentiment Speaks: Silver Is At A Major Turning Point - 17th Sep 24
If The Stock Market Turn Quickly, How Bad Can Things Get? - 17th Sep 24
IMMIGRATION DRIVES HOUSE PRICES HIGHER - 12th Sep 24
Global Debt Bubble - 12th Sep 24
Gold’s Outlook CPI Data - 12th Sep 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Gold Needs to Break Above $1620 for Momentum

Commodities / Gold and Silver 2013 Mar 22, 2013 - 03:45 PM GMT

By: Ben_Traynor

Commodities

U.S. DOLLAR gold prices continued to hover around $1610 per ounce Friday morning, dipping back below that level after making gains in Asian trading, while stocks and commodities were flat on the day ahead of a vote by Cyprus's parliament on measures aimed at raising money and securing a bailout.

"[Gold's] $1620 high from Feb 26 will be a key level," says the latest technical analysis from bullion bank Scotia Mocatta.


"If we can close above there, it will open up a test of the top of the bearish trend channel, currently at $1643."

"The slow movement in prices has really drained the interest in the market," one Hong Kong trader told newswire Reuters this morning.

"If we can break through $1620, more people will take a look at it and think maybe there will be some momentum."

Heading into the weekend, gold looked set to record its biggest weekly gain since November by Friday lunchtime in London, up around 1% from last week's close.

By contrast, the world's biggest gold exchange traded fund, the SPDR Gold Trust (ticker GLD), was on course for its 12th week of outflows, having lost 11.7 tonnes between last Friday and yesterday.

Since the start of 2013 the GLD has seen the volume of gold held to back its shares drop by nearly 10%.

GLD investors "are exiting at more than twice the rate of sales at the nearest US competitor [the iShares Gold Trust, IAU] as a rebounding economy dims the appeal of bullion," reports news agency Bloomberg.

Gold in Euros meantime looks set to record its fourth straight weekly gain later today, despite dropping back below €1250 an ounce as the Euro ticked higher against the Dollar.

"[Gold's gains this week are] due to substantial short-covering by speculative funds," says a note from VTB Capital, "as the Cyprus crisis has reminded markets that significant potential pitfalls remain in Europe... However, gold remains in a strong downtrend since the failed attempt to break above $1800 in October."

Silver meantime drifted back towards $29 an ounce this morning, having broken above that level during Thursday's trading.

Lawmakers in Cyprus are due to vote today on plans for a national solidarity fund aimed at raising the €5.8 billion needed to secure a €10 billion bailout, after talks with Russia failed to secure financial support.

Options to be discussed include using state assets as collateral for selling bonds and the imposition of capital controls to reduce deposit withdrawals when banks reopen, as they are scheduled to do next Tuesday.

Politicians are also expected to discuss restructuring the banking sector, with the European Central Bank saying it will cut off emergency liquidity provision on Monday for any banks it considers insolvent.

A plan to split Cyprus's second-biggest lender Laiki into "good" and "bad" banks has been rejected by European leaders, the Financial Times reports today, with German chancellor Angela Merkel objecting to the idea of nationalizing Cypriot pension funds.

"There was some discussion of going back to the original plan of a bank levy," the FT quotes an unnamed source, "but there are objections from the [Cypriot] central bank."

Cypriot lawmakers rejected plans earlier this week that would have imposed a levy of 6.75% on deposits below €100,000 and 9.9% on those above that level.

"The European project is crashing to earth," former Cyprus central bank governor Athanasios Orphanides says in an FT interview, adding that conditions attached to a potential bailout have made "a mockery" of European Union treaties.

"We have seen a cavalier attitude towards the expropriation of property and the bullying of a people," Orphanides says.

Elsewhere in Europe, German businesses have become more pessimistic this month about current and future economic conditions than they were in February, according to IFO survey data published this morning.

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

© 2005-2022 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