Best of the Week
Most Popular
1. Gold Final Warning: Here Are the Stunning Implications of Plunging Gold Price - P_Radomski_CFA
2.Fed Balance Sheet QE4EVER - Stock Market Trend Forecast Analysis - Nadeem_Walayat
3.UK House Prices, Immigration, and Population Growth Mega Trend Forecast - Part1 - Nadeem_Walayat
4.Gold and Silver Precious Metals Pot Pourri - Rambus_Chartology
5.The Exponential Stocks Bull Market - Nadeem_Walayat
6.Yield Curve Inversion and the Stock Market 2019 - Nadeem_Walayat
7.America's 30 Blocks of Holes - James_Quinn
8.US Presidential Cycle and Stock Market Trend 2019 - Nadeem_Walayat
9.Dear Stocks Bull Market: Happy 10 Year Anniversary! - Troy_Bombardia
10.Britain's Demographic Time Bomb Has Gone Off! - Nadeem_Walayat
Last 7 days
WAR - Us versus Them Narrative - 20th May 19
US - Iran War Safe-haven Reasons to Own Gold - 20th May 19
How long does Google have to reference a website? - 20th May 19
Tory Leadership Contest - Will Michael Gove Stab Boris Johnson in the Back Again? - 19th May 19
Stock Market Counter-trend Rally - 19th May 19
Will Stock Market “Sell in May, Go Away” Lead to a Correction… or a Crash? - 19th May 19
US vs. Global Stocks Sector Rotation – What Next? Part 1 - 19th May 19
BrExit Party EarthQuake Could Win it 150 MP's at Next UK General Election! - 18th May 19
Dow Stock Market Trend Forecast 2019 May Update - 18th May 19
US Economy to Die a Traditional Death… Inflation Is Going to Move Higher - 18th May 19
Trump’s Trade War Is Good for These 3 Dividend Stocks - 18th May 19
GDX Gold Mining Stocks Fundamentals Update - 17th May 19
Stock Markets Rally Hard – Is The Volatility Move Over? - 17th May 19
The Use of Technical Analysis for Forex Traders - 17th May 19
Brexit Party Set to Storm EU Parliament Elections - Seats Forecast - 17th May 19
Is the Trade War a Catalyst for Gold? - 17th May 19
This Is a Recession Indicator No One Is Talking About—and It’s Flashing Red - 17th May 19
War! Good or Bad for Stocks? - 17th May 19
How Many Seats Will Brexit Party Win - EU Parliament Elections Forecast 2019 - 16th May 19
It’s Not Technology but the Fed That Is Taking Away Jobs - 16th May 19
Learn to Protect your Forex Trading Capital - 16th May 19
Gold Ratio Charts Offer The Keys to the Bull Market - 16th May 19
Is Someone Secretly Smashing the Stock Market at Night? - 16th May 19
Crude Oil Price Fails At Critical Fibonacci Level - 15th May 19
Strong Stock Market Rally Expected - 15th May 19
US China Trade Impasse Threatens US Lithium, Rare Earth Imports - 15th May 19
Gold Mind Reader's Guide to the Global Markets Galaxy: 'Surreal' - 15th May 19
Trade Wars and Other Black Swan Threats to Your Investments - 15th May 19
Our Long-Anticipated Gold Momentum Rally Begins - 15th May 19
Defense Spending Is Recession Proof - Defense Dividend Stocks - 15th May 19
US China Trade Issues Will Drive Market Trends – PART II - 14th May 19
The Exter Inverted Pyramid of Global Liquidity Credit risk, Liquidity and Gold - 14th May 19
Can You Afford To Ignore These Two Flawless Gold Slide Indicators? - 14th May 19
As cryptocurrency wallets become more popular, will cryptocurrencies replace traditional payments? - 14th May 19
How US Debt Will Reach $40 Trillion by 2025 - 14th May 19
Dangers Beyond a Trade War with China - 14th May 19
eBook - Greatest Tool for Trading? - 14th May 19
Classic Pitfalls for Inexperienced Traders - 14th May 19

Market Oracle FREE Newsletter

U.S. House Prices Analysis and Trend Forecast 2019 to 2021

Gold Dull Trade, Silver Dead Flat, Chartists Split on Medium Term Outlook

Commodities / Gold and Silver 2013 Nov 06, 2013 - 04:20 PM GMT

By: Adrian_Ash


WHAT one trader called "very dull" trade saw gold trade unchanged from last Friday's finish of $1317 per ounce lunchtime in London.

Silver also held unchanged midweek at $21.90 after a brief spike above $22.00 per ounce.

World stock markets were meantime flat overall, while commodities reversed Tuesday's small drop.

Ahead of tomorrow's monthly policy vote by the European Central Bank, the Euro currency crept back above $1.36 following stronger-than-forecast service sector data but a drop in retail sales.

That nudged the gold price in Euros down €1 per ounce to €975.

Priced in Dollars gold "has seen a lower high for the past daily 6 consecutive trading sessions," notes Scotiabank's latest technical analysis of the charts.

"We believe the market is selling gold on any bounce while it remains below $1330."

But last week's dip to $1310 now means Bank of America Merrill Lynch strategist MacNeil Curry is "long gold", recommending clients buy the metal because "the medium-term trend has turned bullish."

Citing "the impulsive gains from the $1251 low of Oct.15 low, and the break of the [two-month] downtrend," Curry is targeting a possible run up to $1500 per ounce – which he sees as "long-term resistance."

"The jury is still out," counters the latest technical analysis from Commerzbank's Axel Rudolph in Frankfurt, "as to which direction the medium-term trend will take.

"But we still favour weakness."

Silver meantime "remains longer term bearish while trading below the $23.12 resistance area," he adds.

Australia's Perth Mint, which refines some 300 tonnes of gold per year, said today that gold coin sales rose 13% in October from September.

"We're desperately trying to keep up with production," the Wall Street Journalquotes Ron Currie, head of sales and marketing, who adds that the Perth Mint "sold out" of 1-ounce lunar silver coins "in just over a month."

Although gold demand from Western retail investors grew in October, however, money-managers using the SPDR Gold Trust to gain exposure to gold prices cut their holdings by a further 3.6% last month.

Holdings in the SPDR (ticker: GLD), the world's largest exchange-traded fund by value at its peak in 2011, ended Tuesday unchanged from Monday at 866 tonnes, a 57-month low.

Looking at gold options contracts – which give traders the right to buy or sell at certain prices in the future – "We expect lower gold prices for the coming years," says a note from Dutch bank ABN Amro's analysts.

"The bias [amongst options traders] turned negative in October 2012...[and while] the recovery of gold prices since June has resulted in a less negative bias, the market has not come close to being neutral."

Meantime in India – the world's No.1 consumer gold market, but likely to be overtaken in 2013 by China – premiums above London's benchmark gold price held on Wednesday around $70 per ounce, says Reuters, after halving from last week's record levels as the traditionally strong Diwali festival ended.

"Demand is tapering off," the newswire quotes Bachhraj Bamalwa of the All India Gems & Jewellery Trade Federation. "There won't be buying for another week" until the Hindu wedding season returns.

By Adrian Ash

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 - 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