Best of the Week
Most Popular
1. US Housing Market House Prices Bull Market Trend Current State - Nadeem_Walayat
2.Gold and Silver End of Week Technical, CoT and Fundamental Status - Gary_Tanashian
3.Stock Market Dow Trend Forecast - April Update - Nadeem_Walayat
4.When Will the Stock Market’s Rally Stop? - Troy_Bombardia
5.Russia and China Intend to Drain the West of Its Gold - MoneyMetals
6.BAIDU (BIDU) - Top 10 Artificial Intelligence Stocks Investing To Profit from AI Mega-trend - Nadeem_Walayat
7.Stop Feeding the Chinese Empire - ‘Belt and Road’ Trojan Horse - Richard_Mills
8.Stock Market US China Trade War Panic! Trend Forecast May 2019 Update - Nadeem_Walayat
9.US China Trade Impasse Threatens US Lithium, Rare Earth Imports - Richard_Mills
10.How to Invest in AI Stocks to Profit from the Machine Intelligence Mega-trend - Nadeem_Walayat
Last 7 days
IBM - Investing in AI Machine Intelligence Stocks - 25th May 19
Seasonal Dysfunction: Why Generations of Gold and Silver Investors Are Having Such Difficulty - 25th May 19
Employment - The Good and the Bad of Job Automation - 25th May 19
Gold Mining Mid-Tier Stocks Fundamentals - 25th May 19
Buy This Pick-and-Shovel 5G Stock Before It Takes Off - 25th May 19
China Hang Seng Stocks Index Collapses and Commodities - 24th May 19
Costco Corp. (COST): Finding Opportunity in Five Minutes or Less - 24th May 19
How Free Bets Have Impacted the Online Casino Industry - 24th May 19
This Ultimate Formula Will Help You Avoid Dividend Cutting Stocks - 24th May 19
Benefits of a Lottery Online Account - 24th May 19
Technical Analyst: Gold Price Weakness Should Be Short Term - 24th May 19
Silver Price Looking Weaker than Gold - 24th May 19
Nigel Farage's Brexit Party EU Elections Seats Results Forecast - 24th May 19
Powerful Signal from Gold GDX - 24th May 19
Eye Opening Currency Charts – Why Precious Metals Are Falling - 23rd May 19
Netflix Has 175 Days Left to Pull Off a Miracle… or It’s All Over - 23rd May 19
Capitalism Works, Ravenous Capitalism Doesn’t - 23rd May 19
The Euro Is Bidding Its Time: A Reversal at Hand? - 23rd May 19
Gold Demand Rose 7% in Q1 2019. A Launching Pad Higher for Gold? - 23rd May 19
Global Economic Tensions Translate Into Oil Price Volatility - 22nd May 19
The Coming Pension Crisis Is So Big That It’s a Problem for Everyone - 22nd May 19
Crude Oil, Hot Stocks, and Currencies – Markets III - 22nd May 19
The No.1 Energy Stock for 2019 - 22nd May 19
Brexit Party and Lib-Dems Pull Further Away from Labour and Tories in Latest Opinion Polls - 22nd May 19
The Deep State vs Donald Trump - US vs Them Part 2 - 21st May 19
Deep State & Financial Powers Worry about Alternative Currencies - 21st May 19
Gold’s Exciting Boredom - 21st May 19
Trade War Fears Again, Will Stocks Resume the Downtrend? - 21st May 19
Buffett Mistake Costs Him $4.3 Billion This Year—Here’s What Every Investor Can Learn from It - 21st May 19
Dow Stock Market Trend Forecast 2019 May Update - Video - 20th May 19
A Brief History of Financial Entropy - 20th May 19
Gold, MMT, Fiat Money Inflation In France - 20th May 19
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

Market Oracle FREE Newsletter

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

Stock Market Boom Sees Gold Down 25% in 2013

Commodities / Gold and Silver 2013 Nov 22, 2013 - 03:01 PM GMT

By: Adrian_Ash

Commodities

FOUR-MONTH lows in gold continued vs. the Dollar and Euro in London on Friday, with the metal heading for its lowest weekly finish in British Pounds since early August 2010.

World stock markets rose meantime, extending 2013's 30% gain on the MSCI index, as did commodities and government bond prices, after the Dow Jones index in New York ended last night above 16,000 for the first time.


"People are finding it hard to find a reason to own gold," the Wall Street Journal quotes one analyst today.

"Precious metals markets," says David Govett at brokers Marex Spectron, also speaking to the WSJ, "are out of favor with investors and set to stay that way,"

Silver tracked gold's Dollar-price drop of 3.6% to $1245 this week, failing to hold a rally above $20 per ounce lunchtime Friday.

Averaging 14% annual gains since 1999, the Sterling gold price has so far dropped 25% in 2013, dipping below £770 per ounce overnight.

New data from the International Monetary Fund meantime showed central banks as a group adding slightly to their gold reserves in October.

Turkey led the rise, with nearly 13 tonnes being added – most likely by commercial banks putting more client property on deposit, as part of their liquidity reserves – to the country's previous holdings of 491.

Germany sold 3.4 tonnes from its 3,391 reserves, again for production of gold coin.

The United States added 33 kilograms, the largest change to its world-leading 8,133-tonne hoard since the 840kg added in the third quarter of 2012.

"Our bullish view has proven incorrect," said Bank of America-Merrill Lynch technical strategist MacNeil Curry on Thursday, pointing to the drop through $1251 per ounce.

Whilst $1270 will now "limit the topside," his chart analysis says, "bears need a break [below] $1155 and $1087 to confirm a long-term top and secular turn in trend from bullish to bearish."

Targeting averaging prices of $1150 per ounce across the second quarter of 2014, TD Securities' analyst Mike Dragosits says "Spec positioning" in the futures market "could also precipitate an overshoot, with gold hitting sub-$1000/oz on an intraday basis."

Speculative traders in the US gold futures market have this year built the biggest "short" bet against prices since the bear-market lows of 1999.

"We will continue to watch Comex specs activity as a major contributing driver for this move," says TD's note.

Gold prices in India, formerly the world's No.1 consumer but now overtaken by China, pushed higher above international benchmarks Friday, reports Reuters.

"Premiums are still on the higher side at about $120 per ounce," the newswire quotes All India Gems & Jewellery Federation chairman Haresh Soni.

Thanks to the Indian government's strict anti-gold import rules, aimed at cutting the country's large trade deficit, "Still there is scarcity of gold," Soni adds. "This problem will continue for another 5-6 months till the elections."

Physical gold will meantime be traded between China's biggest banks in formal "swaps" contracts starting Monday, the National Interbank Funding Center said today.

Used by large gold owners and traders to raise cash, and with a small rate of interest typically offered to borrowers as an incentive, gold swaps hit the headlines in 2010 after European central banks were identified as the source of 349 tonnes swapped with the Bank for International Settlements during the 1st half of the year, raising cash amid the growing Eurozone debt crisis.

Announcing a raft of reforms this week after the 3rd plenum of the current politburo, policymakers in Beijing have put China's gold-market liberalization at the heart of financial deregulation.

US derivatives exchange the CME yesterday cut the margin payments needed to trade gold and silver futures contracts, halving the sharp hike made in June as prices ended their worst quarterly drop in three decades.

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