Best of the Week
Most Popular
1. Stock Markets and the History Chart of the End of the World (With Presidential Cycles) - 28th Aug 20
2.Google, Apple, Amazon, Facebook... AI Tech Stocks Buying Levels and Valuations Q3 2020 - 31st Aug 20
3.The Inflation Mega-trend is Going Hyper! - 11th Sep 20
4.Is this the End of Capitalism? - 13th Sep 20
5.What's Driving Gold, Silver and What's Next? - 3rd Sep 20
6.QE4EVER! - 9th Sep 20
7.Gold Price Trend Forecast Analysis - Part1 - 7th Sep 20
8.The Fed May “Cause” The Next Stock Market Crash - 3rd Sep 20
9.Bitcoin Price Crash - You Will be Suprised What Happens Next - 7th Sep 20
10.NVIDIA Stock Price Soars on RTX 3000 Cornering the GPU Market for next 2 years! - 3rd Sep 20
Last 7 days
Gold Price Trend Forecast into 2021, Is Intel Dying?, Can Trump Win 2020? - 20th Oct 20
Gold Asks Where Is The Inflation - 20th Oct 20
Last Chance for this FREE Online Trading Course Worth $129 value - 20th Oct 20
More Short-term Stock Market Weakness Ahead - 20th Oct 20
Dell S3220DGF 32 Inch Curved Gaming Monitor Unboxing and Stand Assembly and Range of Movement - 20th Oct 20
Best Retail POS Software In Australia - 20th Oct 20
From Recession to an Ever-Deeper One - 19th Oct 20
Wales Closes Border With England, Stranded Motorists on Severn Bridge? Covid-19 Police Road Blocks - 19th Oct 20
Commodity Bull Market Cycle Starts with Euro and Dollar Trend Changes - 19th Oct 20
Stock Market Melt-Up Triggered a Short Squeeze In The NASDAQ and a Utilities Breakout - 19th Oct 20
Silver is Like Gold on Steroids - 19th Oct 20
Countdown to Election Mediocrity: Why Gold and Silver Can Protect Your Wealth - 19th Oct 20
“Hypergrowth” Is Spilling Into the Stock Market Like Never Before - 19th Oct 20
Is Oculus Quest 2 Good Upgrade for Samsung Gear VR Users? - 19th Oct 20
Low US Dollar Risky for Gold - 17th Oct 20
US 2020 Election: Are American's ready for Trump 2nd Term Twilight Zone Presidency? - 17th Oct 20
Custom Ryzen 5950x, 5900x, 5800x , RTX 3080, 3070 64gb DDR4 Gaming PC System Build Specs - 17th Oct 20
Gold Jumps above $1,900 Again - 16th Oct 20
US Economic Recovery Is in Need of Some Rescue - 16th Oct 20
Why You Should Focus on Growth Stocks Today - 16th Oct 20
Why Now is BEST Time to Upgrade Your PC System for Years - Ryzen 5000 CPUs, Nvidia RTX 3000 GPU's - 16th Oct 20
Beware of Trump’s October (November?) Election Surprise - 15th Oct 20
Stock Market SPY Retesting Critical Resistance From Fibonacci Price Amplitude Arc - 15th Oct 20
Fed Chairman Begs Congress to Stimulate Beleaguered US Economy - 15th Oct 20
Is Gold Market Going Back Into the 1970s? - 15th Oct 20
Things you Should know before Trade Cryptos - 15th Oct 20
Gold and Silver Price Ready For Another Rally Attempt - 14th Oct 20
Do Low Interest Rates Mean Higher Stocks? Not so Fast… - 14th Oct 20
US Debt Is Going Up but Leaving GDP Behind - 14th Oct 20
Dell S3220DGF 31.5 Inch VA Gaming Monitor Amazon Prime Day Bargain Price! But WIll it Get Delivered? - 14th Oct 20
Karcher K7 Pressure Washer Amazon Prime Day Bargain 51% Discount! - 14th Oct 20
Top Strategies Day Traders Adopt - 14th Oct 20
AMD is KILLING Intel as Ryzen Zen 3 Takes Gaming Crown, AMD Set to Achieve CPU Market Dominance - 13th Oct 20
Amazon Prime Day Real or Fake Sales to Get Rid of Dead Stock? - 13th Oct 20
Stock Market Short-term Top Expected - 13th Oct 20
Fun Stuff to Do with a Budgie or Parakeet, a Child's Best Pet Bird Friend - 13th Oct 20
Who Will Win the Race to Open a Casino in Japan? - 13th Oct 20
Fear Grips Stock Market Short-Sellers -- What to Make of It - 12th Oct 20
For Some Remote Workers, It Pays to Stay Home… If Home Stays Local - 12th Oct 20
A Big Move In Silver: Watch The Currency Markets - 12th Oct 20
Precious Metals and Commodities Comprehensive - 11th Oct 20
The Election Does Not Matter, Stick With Stock Winners Like Clean Energy - 11th Oct 20
Gold Stocks Are Cheap, But Not for Long - 11th Oct 20
Gold Miners Ready to Fall Further - 10th Oct 29
What Happens When the Stumble-Through Economy Stalls - 10th Oct 29
This Is What The Stock Market Is Saying About Trump’s Re-Election - 10th Oct 29
Here Is Everything You Must Know About Insolvency - 10th Oct 29
Sheffield Coronavirus Warning - UK Heading for Higher Covid-19 Infections than April Peak! - 10th Oct 29
Q2 Was Disastrous. But What’s Next for the US Economy – and Gold? - 9th Oct 20
Q4 Market Forecast: How to Invest in a World Awash in Debt - 9th Oct 20
A complete paradigm shift will make gold the generational trade - 9th Oct 20
Why You Should Look for Stocks Climbing Out of a “Big Base” - 9th Oct 20
UK Coronavirus Pandemic Wave 2 - Daily Covid-19 Positive Test Cases Forecast - 9th Oct 20
Ryzen ZEN 3: The Final Nail in Intel's Coffin! Cinebench Scores 5300x, 5600x, 5800x, 5900x 5950x - 9th Oct 20

Market Oracle FREE Newsletter

How to Get Rich Investing in Stocks by Riding the Electron Wave

Gold Struggles in Sideways Resistance Price Range

Commodities / Gold and Silver 2013 May 07, 2013 - 02:46 PM GMT

By: Ben_Traynor

Commodities

WHOLESALE gold market prices fell to $1460 an ounce Tuesday morning, around ten Dollars lower than where it closed last week, as the FTSE in London ticked higher following yesterday's UK bank holiday.

Other European stock markets also edged higher, while the Euro gained against the Dollar immediately following the release of better-than-expected German factory orders data.


Silver meantime fell below $23.70 an ounce, nearly 2% down on the week so far, while other industrial commodities also ticked lower.

"Gold is struggling against the important resistance range at $1469 [an ounce] and $1504.33," says technical analysts at UBS.

"Support is at last week's low of $1440.57, a break below this would pave the way to test $1424.63 and even$ 1405.02, the 38% and 50% retracements of the April-May recovery, respectively."

"Our view is more sideways consolidation before another test to the downside," agree technical analysts at bullion bank Scotia Mocatta, who also cite support at $1440.

On the New York Comex, the number of bearish short gold futures contracts held by smaller private traders, classified by the Commodity Futures Trading Commission as 'Nonreportable', exceeded the number of bullish long futures they held last Tuesday, according to weekly data published by the CFTC Friday. It is the first time this category of trader has been reported as holding more short than long contracts since February 2001.

So called Managed Money meantime – a category that includes hedge funds and other professional money managers – held slightly fewer short contracts than a week earlier, although at 65,224 contracts the aggregate short gold position of fund managers remains elevated compared to recent years.

Gold exchange traded funds saw their twelfth straight week of outflows last week, implying ongoing selling of their shares by investors, according to data from Bloomberg. The largest gold ETF, SPDR Gold Trust (ticker: GLD), saw its total gold holdings fall to a 44-month low of 1062.3 tonnes, compared to more than 1350 tonnes at the start of the year.

"We continue to believe exchange-traded product outflows remain a key downside risk [for the gold price] in the near term," says Suki Cooper, precious metals strategist at Barclays Capital.

The Gold Fund run by hedge fund Paulson & Co., the GLD's biggest stakeholder, ended April down 27%, Bloomberg reports, citing "two people familiar with the matter". As well as GLD shares the fund also specializes in investing in gold mining equities.

"We expect the physical [bullion] demand to support the [gold] market," say analysts at banking group ANZ.

"[But that] could prove difficult to maintain in the face of rallying equity markets,ETF outflows and speculative financial shorts... additionally, global inflation concerns that could support gold are benign. We expect to see a pick-up in prices through the second half of 2013, where gold should trade in the mid-high $1500 an ounce area."

ANZ today cut its 2013 average gold price forecast to $1573 an ounce, forecasting an average price next year of $1648 an ounce.

"To suggest the gold price makes a lot of upside from here requires either a global crisis or a re-emergence of inflation," said Gary Dugan, private bank Coutts' chief investment officer for Asia and the Middle East, in an interview quoted by Bloomberg today.

Coutts now holds between 1% and 2% of its clients' money in gold, down from 6-7% as recently as September, he said.

Gold imports to mainland China through Hong Kong more than doubled in March, net of exports, according to latest data from the Census & Statistics Bureau cited by Reuters.

The surge came as part of China's 26% rise in first-quarter gold consumption, reported today by the China Gold Association.

Over in the West meantime, April's gold price drop was met with increased demand for physical gold bullion from self-directed individual investors, according the Gold Investor Index from online precious metals exchange BullionVault, which hit a 16-month high at 58.6 last month.

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

© 2005-2019 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

6 Critical Money Making Rules