Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
VR and Gaming Becomes the Metaverse - 7th Dec 21
How to Read Your Smart Meter - Economy 7, Day and Night Rate Readings SMETS2 EDF - 7th Dec 21
For Profit or for Loss: 4 Tips for Selling ASX Shares - 7th Dec 21
INTEL Bargain Teck Stocks Trading at 15.5% Discount Sale - 7th Dec 21
US Bonds Yield Curve is not currently an inflationist’s friend - 7th Dec 21
Omicron COVID Variant-Possible Strong Stock Market INDU & TRAN Rally - 7th Dec 21
The New Tech That Could Take Tesla To $2 Trillion - 7th Dec 21
S&P 500 – Is a 5% Correction Enough? - 6th Dec 21
Global Stock Markets It’s Do-Or-Die Time - 6th Dec 21
Hawks Triumph, Doves Lose, Gold Bulls Cry! - 6th Dec 21
How Stock Investors Can Cash in on President Biden’s new Climate Plan - 6th Dec 21
The Lithium Tech That Could Send The EV Boom Into Overdrive - 6th Dec 21
How Stagflation Effects Stocks - 5th Dec 21
Bitcoin FLASH CRASH! Cryptos Blood Bath as Exchanges Run Stops, An Early Christmas Present for Some? - 5th Dec 21
TESCO Pre Omicron Panic Christmas Decorations Festive Shop 2021 - 5th Dec 21
Dow Stock Market Trend Forecast Into Mid 2022 - 4th Dec 21
INVESTING LESSON - Give your Portfolio Some Breathing Space - 4th Dec 21
Don’t Get Yourself Into a Bull Trap With Gold - 4th Dec 21
GOLD HAS LOTS OF POTENTIAL DOWNSIDE - 4th Dec 21
4 Tips To Help You Take Better Care Of Your Personal Finances- 4th Dec 21
What Is A Golden Cross Pattern In Trading? - 4th Dec 21
Bitcoin Price TRIGGER for Accumulating Into Alt Coins for 2022 Price Explosion - Part 2 - 3rd Dec 21
Stock Market Major Turning Point Taking Place - 3rd Dec 21
The Masters of the Universe and Gold - 3rd Dec 21
This simple Stock Market mindset shift could help you make millions - 3rd Dec 21
Will the Glasgow Summit (COP26) Affect Energy Prices? - 3rd Dec 21
Peloton 35% CRASH a Lesson of What Happens When One Over Pays for a Loss Making Growth Stock - 1st Dec 21
Stock Market Sentiment Speaks: I Fear For Retirees For The Next 20 Years - 1st Dec 21 t
Will the Anointed Finanical Experts Get It Wrong Again? - 1st Dec 21
Main Differences Between the UK and Canadian Gaming Markets - 1st Dec 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Gold Follows Euro Lower On German Economic Confidence Numbers

Commodities / Gold & Silver Apr 24, 2008 - 07:34 AM GMT

By: Adrian_Ash

Commodities SPOT GOLD slipped to a fresh three-week low beneath $898 per ounce early Thursday in London , as a sharp bounce in the US Dollar forced a drop in equities, crude oil and the Euro.

Short-term US Treasury bonds also capped their eight-day losing streak, however, pushing the two-year yield down to 2.20%.


"There is a raft of data out of the US later today," notes Mitsui, the precious metals dealer, "including jobless claims, durable goods orders and new home sales figures.

"Any improvement in these figures would see the Euro – and as a result, the precious metals – test the downside again."

Precious metals ticked lower against the Dollar in early trade, but the European currency fell faster still on the weakest reading of German business confidence in more than two years.

Versus the US Dollar, the Euro fell almost 1.5¢ to a one-week low of $1.5720 after the Ifo Institute's survey of 7,000 firms pointed to "a slower pace of business activity" in the world's third-largest economy.

Following this week's marked decline in Belgian, French and Dutch business confidence, one currency analyst called the German data "pivotal" for the Euro.

Today's 1.1% drop in the single currency pushed the Gold Price in Euros higher by 1.3% from yesterday's low, recorded at what looks increasingly like key support near €565 per ounce. ( See this level in Euro Gold Prices here... )

Overnight in India – destination for 20% of all gold sold in 2007 – physical gold dealers reported strong sales ahead of next week's Akshaya Thrithiya festival.

This auspicious "festival of lights", marked across the southern states and cities of Kerala, Bangalore and Chennai, saw a surge in Gold Buying in both 2006 and 2007.

But so far in '08, jewelry buyers have been put off by record-high Gold Prices vs. the Indian Rupee.

"People purchased what they wanted yesterday," said on gold importer in New Delhi to Reuters today. "Now they want more dips."

"Demand is there, but it's not huge like we saw last year," agrees Mahendra Bafna, head of Riddisiddhi Bullions in Mumbai.

Here in London this morning, the FTSE stock index fell 1.9% to a one-week low as housing and finance shares slumped after Persimmon – a major home-builder – said "the unprecedented tightening in the mortgage market has caused lower [ UK ] sales volumes and increased cancellation rates."

Brent crude oil ticked 0.5% lower to slip below $116 per barrel, but European coal prices for leapt to a new record high, driven by a 58% rise in freight rates since the end of January according to a Bloomberg report.

Copper prices also jumped on news of fast-depleting stockpiles in London , New York and Shanghai , which shrank by one quarter since the start of the year. The world's biggest mining group, BHP Billiton, saw its Australian copper output fall 8% between Jan. and April, leaving the market "short" according to an analyst at Sucden Metals in London .

In soft commodities, rice futures climbed to a new all-time high overnight, even though Japan – which claims to be self-sufficient in this staple grain, a tenet of national pride – said it will delay seeking new imports until prices ease off.

"It is better for Japan not to import rice while a price rally continues," said the head of Unipac Grain in Tokyo to Bloomberg, "because Japan doesn't need supply from abroad."

World rice costs have doubled in the last 12 months.

The Indian government is now considering export curbs to tackle inflation in its domestic rice prices.

Overall, the cost of living in India is rising at a three-year record of 7.4% annually.

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