Best of the Week
Most Popular
1. Next Financial Crisis Is Already Here! John Lewis 99% Profits CRASH - Retail Sector Collapse - Nadeem_Walayat
2.Why Is Apple Giving This Tiny Stock A $900 Million Opportunity? - James Burgess
3.Gold Price Trend Analysis - - Nadeem_Walayatt
4.The Beginning of the End of the Dollar - Richard_Mills
5.Stock Market Trend Forecast Update - - Nadeem_Walayat
6.Hindenburg Omen & Consumer Confidence: More Signs of Stock Market Trouble in 2019 - Troy_Bombardia
7.Precious Metals Sector: It’s 2013 All Over Again - P_Radomski_CFA
8.Central Banks Have Gone Rogue, Putting Us All at Risk - Ellen_Brown
9.Gold Stocks Forced Capitulation - Zeal_LLC
10.The Post Bubble Market Contraction Thesis Receives Validation - Plunger
Last 7 days
Commodities - What Do You Need To Know? - 20th Nov 18
Precious Metals Moving In Unison For A Massive Price Advance - 20th Nov 18
Handicapping the Precious Metals Through Year-End - 20th Nov 18
Betting Markets Confirm Theresa May Safe From Tory Leadership Challenge this Week - 20th Nov 18
Rail Chaos Transpennine Express Cancels Services to Manchester Airport Whilst on the Train! - 20th Nov 18
The Giants Are Coming...Giants of The Internet! - 20th Nov 18
Gold & Silver Corrective Rally is Almost Over - 19th Nov 18
Stock Market Going Sideways - Which Direction is Next? - 19th Nov 18
Technical Analysis Points to DOW 30k Next Target - 19th Nov 18
Stock Market Consolidating in a Downtrend  - 19th Nov 18
Next Tory Leader, Prime Minister Forecast and Betting Market Odds - 18th Nov 18
The Fed's Misleading Money Supply Measures - 17th Nov 18
Stock Market Outlook: Why the Economy is Bullish for Stocks Going into 2019 - 17th Nov 18
NO DEAL HARD BrExit Tory Chaos, Theresa May Leadership Challenge - 17th Nov 18
Gold vs Several Key Investments - 17th Nov 18
GDX Gold Mining Stocks Q3 18 Fundamentals - 17th Nov 18
Is Gold Under or Overpriced? - 17th Nov 18
Active Managers are Bearish on Stocks. A Bullish Contrarian Sign - 16th Nov 18
Will The Fed Sacrifice Retirement Portfolio Values For The "Common Good"? - 16th Nov 18
BrExit War - Tory Party About to Replace Theresa May for NO DEAL BrExit - 16th Nov 18
Aspire Global Makes Significant Financial Strides - 16th Nov 18
Gold Oil and Commodities …Back to the Future ? - 16th Nov 18
Will Oil Price Crash Lead to “Contagion” for the U.S. Stock Market? - 15th Nov 18
How NOT to Be Among the MANY Stock Investors Fooled by This Market Myth - 15th Nov 18
Tory BrExit Chaos Cripples UK Economy, Wrecks Housing Market Confidence - 15th Nov 18
Stocks Could End 2018 With A Dramatic Rally - 15th Nov 18
What Could Be the Last Nail in This Stock Bull Markets Coffin - 15th Nov 18
Defensive Stock Sectors Outperforming, Just Like During the Dot-com Bubble - 15th Nov 18
Buying Your First Home? Here’s How to Save Money - 15th Nov 18
US Economy Ten Points or Ten Miles to ‘Bridge Out’? - 14th Nov 18
US Stocks: Whither from Here? - 14th Nov 18
Know exactly when to Enter&Exit trades using this... - 14th Nov 18
Understanding the Benefits of Keeping a Trading Journal - 14th Nov 18
S&P 500 Below 2,800 Again, New Downtrend or Just Correction? - 13th Nov 18
Warning: Precious Metals’ Gold and Silver Prices are about to Collapse! - 13th Nov 18
Why the End of the Longest Crude Oil Bull Market Since 2008? - 13th Nov 18
Stock Market Counter-trend Rally Reaches .618 Retracement - 13th Nov 18
How to Create the Best Website Content and Generate Organic Traffic - 13th Nov 18
Why the Stock Market Will Pullback, Rally, and Roll Into a Bear Market - 13th Nov 18
Stock Markets Around the World are Crashing. What Not to Worry About? - 12th Nov 18
Cyclical Commodities Continue to Weaken, Gold Moves in Relation - 12th Nov 18
Olympus Tough TG-5 Camera Stuck or Dead Pixels, Rubbish Video Auto Focus - 12th Nov 18
5 Things That Precede Gold Price Major Bottoms - 12th Nov 18
Big US Stocks Q3 Fundamentals - 12th Nov 18
How "Free Money" Helped Create Sizzling Housing Market & REIT Gains - 12th Nov 18
One Direction More Likely for Bitcoin Price - 12th Nov 18
The Place of HSE Software in Today's Business - 12th Nov 18

Market Oracle FREE Newsletter

How You Could Make £2,850 Per Month

Gold Price Sinks 1.8% in 2 Minutes on U.S. Debt Deal Hope

Commodities / Gold and Silver 2013 Oct 11, 2013 - 06:24 PM GMT

By: Adrian_Ash

Commodities

WHOLESALE and futures prices for gold dumped 1.8% inside 2 minutes Friday lunchtime in London, extending the week's losses to $50 per ounce at a 3-month low of $1265.

The move came on suddenly heavy volume in the gold futures market, which had previously been quiet after Thursday's fall through $1300.


Silver also fell hard on Friday, and also on a sudden jump in futures trading, hitting a 1-week low at $21.04.

US crude oil contracts lost $1.60 per barrel to $101.40, heading for the fourth weekly loss in five according to Bloomberg data.
 
"With the US equity markets seemingly giving the prospect of a US debt deal credence by the magnitude of the rally," said Thursday night's closing comment from derivatives exchange the CME Group, "a large portion of the [gold futures] marketplace bought into 'hope' of a deal."
 
New York stocks closed yesterday more than 2% higher, with Asia and European shares gaining some 1% on average on Friday.
 
Bondholder insurance on US debt meantime became cheaper, notes Reuters, as credit default swaps on 5-year US notes slipped to 0.3% and 1-year note CDS to 0.6%.
 
Even with gold below $1300, "Physical buying is fairly non existent," said broker Marex Spectron Friday morning.
 
"[Investment] funds are staying clear and even the most die-hard bulls are having problems coming up with a reason to buy gold, given its totally lacklustre performance as of late."
 
Thursday saw the SPDR Gold Trust – the world's largest exchange-traded fund by value in late 2011 – shed a further 1.8 tonnes, taking the volume of gold bullion needed to back its shares to a new 57-month low beneath 897 tonnes.
 
"The path of least resistance appears to be lower for gold," says a note from investment bank HSBC.
 
"There is a very well defined bearish trend line with five touches," said fellow London market maker Scotia Mocatta overnight, "which comes in at 1322 today."
 
New data today meantime showed Japan's money-supply growth ticking higher to 3.7% per year in September.
 
Consumer prices in Italy and Spain fell last month, official indices said this morning, and were unchanged from August in Germany.
 
Gold premiums in India – the world's largest consumer market until anti-import rules hit supply this year – jumped sharply this week, rising 8-fold to $40 per ounce above the London benchmark according to the All-India Gems & Jewellery Trade Federation.
 
Bank of Nova Scotia said today it is in talks with both the Federation and India's central bank to try and attract existing household gold holdings into bank deposits, enabling jewelers to meet demand with domestic supplies.
 
As it is, however, "There is no official gold available," said Sudheesh Nambiath at Thomson Reuters GFMS, noting the start of India's heaviest gold-buying season, culminating with Diwali next month.
 
"People are not willing to sell their old jewellery" at current prices, he added. "Availability is largely unofficial [ie, black market] metal, which is being sold into market at a lower rate than the prevailing premium."

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

© 2005-2018 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