Best of the Week
Most Popular
1. US Housing Market Real Estate Crash The Next Shoe To Drop – Part II - Chris_Vermeulen
2.The Coronavirus Greatest Economic Depression in History? - Nadeem_Walayat
3.US Real Estate Housing Market Crash Is The Next Shoe To Drop - Chris_Vermeulen
4.Coronavirus Stock Market Trend Implications and AI Mega-trend Stocks Buying Levels - Nadeem_Walayat
5. Are Coronavirus Death Statistics Exaggerated? Worse than Seasonal Flu or Not?- Nadeem_Walayat
6.Coronavirus Stock Market Trend Implications, Global Recession and AI Stocks Buying Levels - Nadeem_Walayat
7.US Fourth Turning Accelerating Towards Debt Climax - James_Quinn
8.Dow Stock Market Trend Analysis and Forecast - Nadeem_Walayat
9.Britain's FAKE Coronavirus Death Statistics Exposed - Nadeem_Walayat
10.Commodity Markets Crash Catastrophe Charts - Rambus_Chartology
Last 7 days
UK Corona Catastrophe Trend Analysis - 2nd Jun 20
US Real Estate Stats Show Big Wave Of Refinancing Is Coming - 2nd Jun 20
Let’s Make Sure This Crisis Doesn’t Go to Waste - 2nd Jun 20
Silver and Gold: Balancing More Than 100 Years Of Debt Abuse - 2nd Jun 20
The importance of effective website design in a business marketing strategy - 2nd Jun 20
AI Mega-trend Tech Stocks Buying Levels Q2 2020 - 1st Jun 20
M2 Velocity Collapses – Could A Bottom In Capital Velocity Be Setting Up? - 1st Jun 20
The Inflation–Deflation Conundrum - 1st Jun 20
AMD 3900XT, 3800XT, 3600XT Refresh Means Zen 3 4000 AMD CPU's Delayed for 5nm Until 2021? - 1st Jun 20
Why Multi-Asset Brokers Like TRADE.com are the Future of Trading - 1st Jun 20
Will Fed‘s Cap On Interest Rates Trigger Gold’s Rally? - 30th May
Is Stock Market Setting Up for a Blow-Off Top? - 29th May 20
Strong Signs In The Mobile Gaming Market - 29th May 20
Last Clap for NHS and Carers, Sheffield UK - 29th May 20
The AI Mega-trend Stocks Investing - When to Sell? - 28th May 20
Trump vs. Biden: What’s at Stake for Precious Metals Investors? - 28th May 20
Stocks: What to Make of the Day-Trading Frenzy - 28th May 20
Why You’ll Never Get Another Stimulus Check - 28th May 20
Implications for Gold – 2007-9 Great Recession vs. 2020 Coronavirus Crisis - 28th May 20
Ray Dalio Suggests USA Is Entering A Period Of Economic Decline And New World Order - 28th May 20
Europe’s Coronavirus Pandemic Dilemma - 28th May 20
I Can't Pay My Payday Loans What Will Happen - 28th May 20
Predictive Modeling Suggests US Stock Markets 12% Over Valued - 27th May 20
Why Stocks Bear Market Rallies Are So Tricky - 27th May 20
Precious Metals Hit Resistance - 27th May 20
Crude Oil Cuts Get Another Saudi Boost as Oil Demand Begins to Show Signs of Life - 27th May 20
Where the Markets are heading after COVID-19? - 27th May 20
Silver Springboards Higher – What’s Next? - 26th May 20
Stock Market Key Resistance Breakout Is Where the Rubber Meets the Road - 26th May 20
5 Ways To Amp Up Your CFD Trading Today - 26th May 20
The Anatomy of a Gold Stock Bull Market - 26th May 20
Stock Market Critical Price Level Could Soon Prompt A Big Move - 25th May 20
Will Powell Decouple Gold from the Stock Market? - 25th May 20
How Muslims Celebrated EID in Lockdown Britain 2020 - UK - 25th May 20
Stock Market Topping Behavior - 24th May 20
Fed Action Accelerates Boom-Bust Cycle; Not A Virus Crisis - 23rd May 20
Gold Silver Miners and Stocks (after a quick drop) Ready to Explode - 23rd May 20
3 Ways to Prepare Financially for Retirement - 23rd May 20
4 Essential Car Trade-In Tips To Get The Best Value - 23rd May 20
Budgie Heaven at Bird Land - 23rd May 20

Market Oracle FREE Newsletter

Coronavirus-stocks-bear-market-2020-analysis

Gold Drops as Assad Accepts Russian Plan, Analysts Start Pricing Fed's Cut to QE

Commodities / Gold and Silver 2013 Sep 10, 2013 - 02:14 PM GMT

By: Adrian_Ash

Commodities

BENCHMARK London prices for physical gold fell to $1363 lunchtime Tuesday, down 2.3% from Monday's high as the Assad regime in Syria accepted a Russian-backed plan to give its chemical weapons to international control.

The Rupee meantime rose to a 2-session high after new Indian trade data showed gold imports falling and exports rising in August.


Premiums in Asian markets, over and above London's benchmark gold price, eased further from the early summer's record levels.

Gold futures volume on the US Comex was only half its recent average on Monday, according to Reuters data.

Sterling's continued strength above $1.57 took the gold price for UK investors to its lowest level since Aug.22 beneath £870 per ounce.

With the Dollar gold price also nearing 3-week lows, "New headlines about Syria remain the focus," says one dealing desk in a note.

"The decline in the oil price is adding additional short-term resistance to gold," adds Standard Bank's commodity team.

Russian foreign minister Sergei Lavrov yesterday used an off-the-cuff remark by US secretary of state John Kerry to begin talks over UN inspectors taking control of the Assad regime's chemical arsenal.

Today France drafted a resolution for the United Nations security council, warning Syria of "serious consequences" if it then fails to comply.

European stock markets rose sharply Tuesday morning, while crude oil and major government bonds fell.

Silver extended Monday's drop to stand at $23.15 per ounce, 3.1% below last week's finish.

New data from China showed a jump in retail sales, industrial output and urban investment last month.

"We see the latest price action as a correction of the uptrend which began on June 28th," said a technical note on gold from Scotia Mocatta after Monday's $10 drop.

"Support is at 1352, which is the low from August 20th...Resistance is at the recent high at 1433."

Looking ahead to next week's US Federal Reserve announcement, "Tapering to the tune of $10bn-15bn has in our view been priced in," says a note from Bank of America-Merrill Lynch analysts.

"But if the Fed is more dovish than that, [meaning it] tapers by less or delays tapering entirely, gold prices could rally in the short term."

"Short covering," says analysis from Japanese trading house Mitsui, "was a major factor in the rebound of [both silver and gold] and this may now be running out of momentum."

Noting a slowdown in sales of gold from exchange-traded trust funds, "There are still optimists out there who see value in gold and silver," says Mitsui analyst David Jollie.

"We are not expecting a short-term return to the heavy selling seen in the first part of the year."

New York's giant SPDR Gold Trust – the world's largest exchange traded gold fund – shed 2 tonnes of bullion on Monday, but held 8 tonnes above the four-and-a-half year lows of last month.

"In the event of the Fed tapering its programme of QE," says a note from London market maker Deutsche Bank, "we expect gold returns are vulnerable to higher US real yields and a stronger US Dollar.

"Given our outlook of a further rebound in global growth we view silver and PGMs as the likely out-performers."

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