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
Gold Stocks Autumn Rally - 4th Aug 20
“Government Sachs” Is Worried About the Federal Reserve Note - 4th Aug 20
Gold Miners Still Pushing That Cart of Rocks Up Hill - 4th Aug 20
UK Government to Cancel Christmas - Crazy Covid Eid 2020! - 4th Aug 20
Covid-19 Exposes NHS Institutional Racism Against Black and Asian Staff and Patients - 4th Aug 20
How Sony Is Fueling the Computer Vision Boom - 3rd Aug 20
Computer Gaming System Rig Top Tips For 6 Years Future Proofing Build Spec - 3rd Aug 20
Cornwwall Bude Caravan Park Holidays 2020 - Look Inside Holiday Resort Caravan - 3rd Aug 20
UK Caravan Park Holidays 2020 Review - Hoseasons Cayton Bay North East England - 3rd Aug 20
Best Travel Bags for 2020 Summer Holidays , Back Sling packs, water proof, money belt and tactical - 3rd Aug 20
Precious Metals Warn Of Increased Volatility Ahead - 2nd Aug 20
The Key USDX Sign for Gold and Silver - 2nd Aug 20
Corona Crisis Will Have Lasting Impact on Gold Market - 2nd Aug 20
Gold & Silver: Two Pictures - 1st Aug 20
The Bullish Case for Stocks Isn't Over Yet - 1st Aug 20
Is Gold Price Action Warning Of Imminent Monetary Collapse - Part 2? - 1st Aug 20
Will America Accept the World's Worst Pandemic Response Government - 1st Aug 20
Stock Market Technical Patterns, Future Expectations and More – Part II - 1st Aug 20
Trump White House Accelerating Toward a US Dollar Crisis - 31st Jul 20
Why US Commercial Real Estate is Set to Get Slammed - 31st Jul 20
Gold Price Blows Through Upside Resistance - The Chase Is On - 31st Jul 20
Is Crude Oil Price Setting Up for a Waterfall Decline? - 31st Jul 20
Stock Market Technical Patterns, Future Expectations and More - 30th Jul 20
Why Big Money Is Already Pouring Into Edge Computing Tech Stocks - 30th Jul 20
Economic and Geopolitical Worries Fuel Gold’s Rally - 30th Jul 20
How to Finance an Investment Property - 30th Jul 20
I Hate Banks - Including Goldman Sachs - 29th Jul 20
NASDAQ Stock Market Double Top & Price Channels Suggest Pending Price Correction - 29th Jul 20
Silver Price Surge Leaves Naysayers in the Dust - 29th Jul 20
UK Supermarket Covid-19 Shop - Few Masks, Lack of Social Distancing (Tesco) - 29th Jul 20
Budgie Clipped Wings, How Long Before it Can Fly Again? - 29th Jul 20
How To Take Advantage Of Tesla's 400% Stock Surge - 29th Jul 20
Gold Makes Record High and Targets $6,000 in New Bull Cycle - 28th Jul 20
Gold Strong Signal For A Secular Bull Market - 28th Jul 20
Anatomy of a Gold and Silver Precious Metals Bull Market - 28th Jul 20
Shopify Is Seizing an $80 Billion Pot of Gold - 28th Jul 20
Stock Market Minor Correction Underway - 28th Jul 20
Why College Is Never Coming Back - 27th Jul 20
Stocks Disconnect from Economy, Gold Responds - 27th Jul 20
Silver Begins Big Upside Rally Attempt - 27th Jul 20
The Gold and Silver Markets Have Changed… What About You? - 27th Jul 20
Google, Apple And Amazon Are Leading A $30 Trillion Assault On Wall Street - 27th Jul 20
This Stock Market Indicator Reaches "Lowest Level in Nearly 20 Years" - 26th Jul 20
New Wave of Economic Stimulus Lifts Gold Price - 26th Jul 20
Stock Market Slow Grind Higher Above the Early June Stock Highs - 26th Jul 20
How High Will Silver Go? - 25th Jul 20
If You Own Gold, Look Out Below - 25th Jul 20
Crude Oil and Energy Sets Up Near Major Resistance – Breakdown Pending - 25th Jul 20
FREE Access to Premium Market Forecasts by Elliott Wave International - 25th Jul 20
The Promise of Silver as August Approaches: Accumulation and Conversation - 25th Jul 20
The Silver Bull Gateway is at Hand - 24th Jul 20
The Prospects of S&P 500 Above the Early June Highs - 24th Jul 20
How Silver Could Surpass Its All-Time High - 24th Jul 20

Market Oracle FREE Newsletter

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

Gold Rises to 4 Session High as Global Equities Rally

Commodities / Gold & Silver Apr 07, 2008 - 09:21 AM GMT

By: Adrian_Ash

Commodities GOLD PRICES jumped to a four-session high above $918 per ounce in London trade early Monday, rising 0.5% from last week's close as crude oil rose 1% and world stock markets ticked higher.


"With the US Dollar continuing to weaken and crude oil pretty well supported, there's a need for an inflationary hedge and more people are shifting to commodities including gold," said Ellison Chu, the head of precious metals trading for Standard Bank Asia in Hong Kong, to Bloomberg this morning.

But for short-term direction, "there are no fresh data cues until the Federal Reserve [policy] minutes on Tuesday," notes Kishore Narne of Anand Rathi Commodities in Mumbai.

Notes from the Fed's last policy meeting – when it cut Dollar interest rates by 0.75% – are due at 13:00 EST tomorrow. Thursday brings new interest-rate decisions from the European Central Bank in Frankfurt and the Bank of England in London.

But caught between rising inflation and the global banking crisis – which now presents an "evident" case for public intervention according to Dominic Strauss-Kahn, head of the International Monetary Fund – neither the ECB or BoE is expected to change the cost of money.

"Gold Prices at this level represent good value and I do think we are going to see more demand from Asia," reckons Jonathan Barratt, head of Commodity Broking Services in Sydney.

"For kilo bars, we are seeing a shortage and a premium running at about 40 cents per kilo [in Asia] and we anticipate that to move up to 75 cents in the next few months."

Today the Australian stock market added 0.3% despite a broad rise in Asian-Pacific stocks after the country's third-largest bank, ANZ, sank on news it had to raise bad-debt provisions by 71% in the six months to end-March.

On the data front, Australia's exports fell 4% and imports were unchanged in Feb. from Jan., taking the country's trade deficit to A$3.29 billion (US$3bn). Analysts had expected only three-quarters that gap.

Tokyo gold futures meantime neared Monday's close up 1.1% at ¥3,042 per gram – equal to $922.65 per ounce for Feb. ‘09 delivery – as the Japanese Yen slipped back towards a three-week low on the currency market.

That also boosted Japanese export shares, pushing the Nikkei stock index 1.2% higher to a five-week high as brokerage shares also rose alongside metal and oil prices.

Hong Kong stocks rose 1.1%, helped by a 10% surge in Zijin Mining, China's largest gold-mining group. Today it announced a $1.4bn public offering on the Shanghai stock exchange – plus a further 10% enlargement of its Hong Kong listing – to raise funds for new acquisitions overseas.

Zijin had previously dropped 42% of its value since the start of 2008, falling sharply alongside the Hong Kong market despite a near 50% uplift in reported earnings.

Gold prices in India ticked lower to 11,840 Rupees per 10 grams – down from last month's new all-time peaks above R13,000 – as the Sensex measure of Bombay stocks added 2%.

A committee set up by the government's Planning Commission and chaired by former IMF chief economist Raghuram Rajan said today that the Reserve Bank of India should make controlling inflation its single objective.

The annual inflation rate rose to 7% in the week-ending 22nd March according to official data, the worst rate since Dec. 2004.

The Sensex remained almost 25% below its starting level for 2008.

European stocks rose 0.8% by lunchtime in Frankfurt after finishing their best week in more than 12 months according to Reuters data. Over on the currency markets the Euro recovered of an early one cent loss to reach $1.5700 on news of strong German industrial output in Feb.

The British Pound dipped almost two cents from Friday's high to reach $1.9870, pushing the gold price in British Pounds just above £462 per ounce. For French, German and Italian investors looking to buy gold today, the price reached its best level since Monday last week €585 per ounce.

Over in New York, meantime, the latest CFTC data showed professional and private investors sharply cutting their leveraged bets on gold market futures in the week-ending April 1st.

The net balance of bullish contracts held by gold futures traders dropped by 8%. April Fool's Day then saw world gold prices slump more than 3% to a 10-week low of $875 per ounce.

By Adrian Ash
BullionVault.com

Gold price chart, no delay | Free Report: 5 Myths of the Gold Market
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 2008

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