Best of the Week
Most Popular
1. Gold vs Cash in a Financial Crisis - Richard_Mills
2.Current Stock Market Rally Similarities To 1999 - Chris_Vermeulen
3.America See You On The Dark Side Of The Moon - Part2 - James_Quinn
4.Stock Market Trend Forecast Outlook for 2020 - Nadeem_Walayat
5.Who Said Stock Market Traders and Investor are Emotional Right Now? - Chris_Vermeulen
6.Gold Upswing and Lessons from Gold Tops - P_Radomski_CFA
7.Economic Tribulation is Coming, and Here is Why - Michael_Pento
8.What to Expect in Our Next Recession/Depression? - Raymond_Matison
9.The Fed Celebrates While Americans Drown in Financial Despair - John_Mauldin
10.Hi-yo Silver Away! - Richard_Mills
Last 7 days
South Korea Coronavirus Outbreak Data Analysis Warning Rate of Infection is Exponential! - 26th Feb 20
Gold Price Long-term Trend Analysis Forecast 2020 - 26th Feb 20
Fake Markets Are on Collision Course with Reality - 26th Feb 20
Microsoft is Crushing the S&P 500, Secret Trait Of Stocks That Soar 1,000%+ - 26th Feb 20
Europe's Best Ski Resorts For The Ultimate Adventure - 26th Feb 20
Samsung Galaxy S20+ vs Galaxy S10+ Which One to Buy? - 26th Feb 20
Gold Is Taking on $1,700 amid Rising Coronavirus Fears - 26th Feb 20
Is This What Falling Through the Floor Looks Like in Stocks? - 26th Feb 20
Gold Minsky Moment Coming - 26th Feb 20
Why Every Student Should Study Economics - 26th Feb 20
Stock Market Correction Over? - 26th Feb 20
US Bond Market Yield Curve Patterns – What To Expect In 2020 - 25th Feb 20
Has Stock Market Waterfall Event Started Or A Buying Opportunity? - 25th Feb 20
Coronavirus IN Sheffield! Royal Hallamshire Hospital treating 2 infected Patients, UK - 25th Feb 20
Dow Short-term Trend Analysis - Coronavirus Trigger a Stocks Bear Market? - 24th Feb 20
Sustained Silver Rally Coming? - 24th Feb 20
Should Investors Worry about Repo Market and Buy Gold? - 24th Feb 20
Are FANG Technology Stocks Setting Up For A Market Crash? - 24th Feb 20
Gold Above $1,600 Amid FOMC Minutes and Coronavirus Impact - 24th Feb 20
CoronaVirus Pandemic Day 76 Trend Forecast Update - Infected 540k, Minus China 1715, Deaths 4920 - 23rd Feb 20 -
Ways to Find Startup Capital - 23rd Feb 20
Stock Market Deviation from Overall Outlook for 2020 - 22nd Feb 20
The Shanghai Composite and Coronavirus: A Revealing Perspective - 22nd Feb 20
Baltic Dry, Copper, Oil, Tech and China Continue Call for Stock Market Crash Soon - 22nd Feb 20
Gold Warning – This is Not a Buying Opportunity - 22nd Feb 20
Is The Technology Sector FANG Stocks Setting Up For A Market Crash? - 22nd Feb 20
Coronavirus China Infection Statistics Analysis, Probability Forecasts 1/2 Million Infected - 21st Feb 20
Is Crude Oil Firmly on the Upswing Now? - 20th Feb 20
What Can Stop the Stocks Bull – Or At Least, Make It Pause? - 20th Feb 20
Trump and Economic News That Drive Gold, Not Just Coronavirus - 20th Feb 20
Coronavirus COVID19 UK Infection Prevention, Boosting Immune Systems, Birmingham, Sheffield - 20th Feb 20
Silver’s Valuable Insights Into the Upcoming PMs Rally - 20th Feb 20
Coronavirus Coming Storm Act Now to Protect Yourselves and Family to Survive COVID-19 Pandemic - 19th Feb 20
Future Silver Prices Will Shock People, and They’ll Kick Themselves for Not Buying Under $20… - 19th Feb 20
What Alexis Kennedy Learned from Launching Cultist Simulator - 19th Feb 20
Stock Market Potential Short-term top - 18th Feb 20
Coronavirus Fourth Turning - No One Gets Out Of Here Alive! - 18th Feb 20
The Stocks Hit Worst From the Coronavirus - 18th Feb 20
Tips on Pest Control: How to Prevent Pests and Rodents - 18th Feb 20
Buying a Custom Built Gaming PC From Overclockers.co.uk - 1. Delivery and Unboxing - 17th Feb 20
BAIDU (BIDU) Illustrates Why You Should NOT Invest in Chinese Stocks - 17th Feb 20
Financial Markets News Report: February 17, 2020 - February 21, 2020 - 17th Feb 20
NVIDIA (NVDA) GPU King For AI Mega-trend Tech Stocks Investing 2020 - 17th Feb 20
Stock Market Bubble - No One Gets Out Of Here Alive! - 17th Feb 20
British Pound GBP Trend Forecast 2020 - 16th Feb 20
SAMSUNG AI Mega-trend Tech Stocks Investing 2020 - 16th Feb 20
Ignore the Polls, the Markets Have Already Told You Who Wins in 2020 - 16th Feb 20
UK Coronavirus COVID-19 Pandemic WARNING! Sheffield, Manchester, Birmingham Outbreaks Probable - 16th Feb 20
iShares Nasdaq Biotechnology ETF IBB AI Mega-trend Tech Stocks Investing 2020 - 15th Feb 20
Gold Stocks Still Stalled - 15th Feb 20
Is The Technology Stocks Sector Setting Up For A Crash? - 15th Feb 20
UK Calm Before Corona Virus Storm - Infections Forecast into End March 2020 - 15th Feb 20

Market Oracle FREE Newsletter

Nadeem Walayat Financial Markets Analysiis and Trend Forecasts

Gold Drops with Oil as US & Russia Argue Over Syria Ahead of G20

Commodities / Gold and Silver 2013 Sep 04, 2013 - 04:29 PM GMT

By: Adrian_Ash

Commodities

WHOLESALE GOLD fell back below $1400 per ounce for the third day running Wednesday lunchtime in London, dropping to $1393 and trading 1.7% below yesterday's high as crude oil and world stock markets both fell 0.5%.

Silver dropped to $23.53 per ounce, some 4.0% below Tuesday's top.

Major government bonds edged higher, nudging interest rates down, while weaker Eurozone debt fell in price.


Now putting airstrikes against Syria to a Congressional vote next week, "Failing to respond would only increase the risk of [further chemical weapons] attacks," said US president – and 2009 Nobel peace prize winner – Barack Obama at a press conference in Sweden today.

"The potential for Mideast tensions to intensify would be bullish for bullion," reckons a note from London market maker HSBC.

"Safe haven demand for gold is currently strong...[But] in order for gold to build on recent gains over $1400/oz, oil prices also have to remain strong we believe."

Crude oil slipped 0.5% on Wednesday morning, with US futures retreating to $108 per barrel.

Speaking ahead of tomorrow's G20 summit in St Petersburg, which Obama will attend, Russian president Vladimir Putin warned the US that the Kremlin may revive exports of missiles to its Middle Eastern allies, which include Syria and Iran.

But whilst saying it was "ludicrous" to think the Assad regime had used chemical weapons against civilians as alleged, Putin said Russia would "act in the most decisive and serious way" if UN inspectors prove those claims.

For gold, say commodity researchers at Commerzbank, "We believe that the effect of these political factors will be short-lived.

"Current geopolitical risks are unlikely to bring about any sustained trend reversal for gold. After all, physical demand is relatively weak at present."

"I reiterate what I said last week," says David Govett at brokers Marex, "about buying the rumour of war/missile strikes and selling the fact.

"Bear that in mind as time ticks down to the Congressional vote."

The 17-nation Eurozone meantime followed the UK and US today in revising its latest GDP figures higher, cutting this spring's year-on-year drop to 0.5% from the 0.7% first reported.

New service-sector data meantime showed a four-month high in China, and a surge to the fastest UK growth since 2007.

The Pound hit 1-week highs above $1.56, curbing gold for Sterling investors back below £900 per ounce – a two-year low when first breached in gold's April 2013 crash.

Gold mining output from world No.5 producer South Africa was hit meanwhile by a two-day strike, with work at 17 "partially or severely affected" according to the Chamber of Mines.

"If you are prepared to move, then we may be prepared to move," said NUM spokesperson Lesiba Seshoka on SAFM radio today, suggesting a step back from the 60% wage hikes demanded so far but refusing to comment on rumors of a drop to 10% claims.

Over on the demand side, the Reserve Bank of India today reinstated gold imports, but with a stricter list of approved firms and with the ban on gold coins and medallions still in place.

Gold smuggling to India has doubled so far in 2013 according to industry estimates, thanks to the government's 10% duty and other anti-gold-imports measures.

Nepalese seizures of illegal shipments to India are already three times last year's total. India's banks are now asking potential borrowers not to use any loans to buy gold, the Deccan Chronicle reported this week.

Shops in mid-tier city Xiamen in China – now the world's No.2 consumer country, and likely to overtake India in 2013 on official data – have seen gold and silver jewelry demand rise 42% so far in 2013 from the first 7 months of 2012, equaling more than $148 million.

By Adrian Ash
BullionVault.com

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

Adrian Ash is head of research at BullionVault, the secure, low-cost gold and silver market for private investors online, where you can buy gold and silver in Zurich, Switzerland for just 0.5% commission.

(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

© 2005-2019 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