Best of the Week
Most Popular
1. 2019 From A Fourth Turning Perspective - James_Quinn
2.Beware the Young Stocks Bear Market! - Zeal_LLC
3.Safe Havens are Surging. What this Means for Stocks 2019 - Troy_Bombardia
4.Most Popular Financial Markets Analysis of 2018 - Trump and BrExit Chaos Dominate - Nadeem_Walayat
5.January 2019 Financial Markets Analysis and Forecasts - Nadeem_Walayat
6.Silver Price Trend Analysis 2019 - Nadeem_Walayat
7.Why 90% of Traders Lose - Nadeem_Walayat
8.What to do With Your Money in a Stocks Bear Market - Stephen_McBride
9.Stock Market What to Expect in the First 3~5 Months of 2019 - Chris_Vermeulen
10.China, Global Economy has Tipped over: The Surging Dollar and the Rallying Yen - FXCOT
Last 7 days
UKIP No Longer About BrExit, Becomes BNP 2.0, Muslim Hate Party - 21st Mar 19
A Message to the Gold Bulls: Relying on the CoT Gives You A False Sense of Security - 20th Mar 19
The Secret to Funding a Green New Deal - 20th Mar 19
Vietnam, Part I: Colonialism and National Liberation - 20th Mar 19
Will the Fed Cut its Interest Rate Forecast, Pushing Gold Higher? - 20th Mar 19
Dow Jones Stock Market Topping Pattern - 20th Mar 19
Gold Stocks Outperform Gold but Not Stocks - 20th Mar 19
Here’s What You’re Not Hearing About the US - China Trade War - 20th Mar 19
US Overdosing on Debt - 19th Mar 19
Looking at the Economic Winter Season Ahead - 19th Mar 19
Will the Stock Market Crash Like 1937? - 19th Mar 19
Stock Market VIX Volaility Analysis - 19th Mar 19
FREE Access to Stock and Finanacial Markets Trading Analysis Worth $1229! - 19th Mar 19
US Stock Markets Price Anomaly Setup Continues - 19th Mar 19
Gold Price Confirmation of the Warning - 18th Mar 19
Split Stock Market Warning - 18th Mar 19
Stock Market Trend Analysis 2019 - Video - 18th Mar 19
Best Precious Metals Investment and Trades for 2019 - 18th Mar 19
Hurdles for Gold Stocks - 18th Mar 19
Pento: Coming QE & Low Rates Will Be ‘Rocket Fuel for Gold’ - 18th Mar 19
"This is for Tommy Robinson" Shouts Knife Wielding White Supremacist Terrorist in London - 18th Mar 19
This Is How You Create the Biggest Credit Bubble in History - 17th Mar 19
Crude Oil Bulls - For Whom the Bell Tolls - 17th Mar 19
Gold Mining Stocks Fundamentals - 17th Mar 19
Why Buy a Land Rover - Range Rover vs Huge Tree Branch Falling on its Roof - 17th Mar 19
UKIP Urged to Change Name to BNP 2.0 So BrExit Party Can Fight a 2nd EU Referendum - 17th Mar 19
Tommy Robinson Looks Set to Become New UKIP Leader - 16th Mar 19
Gold Final Warning: Here Are the Stunning Implications of Plunging Gold Price - 16th Mar 19
Towards the End of a Stocks Bull Market, Short term Timing Becomes Difficult - 16th Mar 19
UKIP Brexit Facebook Groups Reveling in the New Zealand Terror Attacks Blaming Muslim Victims - 16th Mar 19
Gold – US Dollar vs US Dollar Index - 16th Mar 19
Islamophobic Hate Preachers Tommy Robinson and Katie Hopkins have Killed UKIP and Brexit - 16th Mar 19
Countdown to The Precious Metals Gold and Silver Breakout Rally - 15th Mar 19
Shale Oil Splutters: Brent on Track for $70 Target $100 in 2020 - 15th Mar 19
Setting up a Business Just Got Easier - 15th Mar 19
Stock Market Elliott Wave Analysis Trend Forercast - Video - 15th Mar 19
Gold Warning - Here Are the Stunning Implications of Plunging Gold Price - Part 1 - 15th Mar 19
UK Weather SHOCK - Trees Dropping Branches onto Cars in Stormy Winds - Sheffield - 15th Mar 19
Best Time to Trade Forex - 15th Mar 19
Why the Green New Deal Will Send Uranium Price Through the Roof - 14th Mar 19
S&P 500's New Medium-Term High, but Will Stock Market Uptrend Continue? - 14th Mar 19
US Conservatism - 14th Mar 19
Gold in the Age of High-speed Electronic Trading - 14th Mar 19
Britain's Demographic Time Bomb Has Gone Off! - 14th Mar 19
Why Walmart Will Crush Amazon - 14th Mar 19
2019 Economic Predictions - 14th Mar 19
Tax Avoidance Bills Sent to Thousands of Workers - 14th Mar 19

Market Oracle FREE Newsletter

Stock Market Trend Forecast March to September 2019

Gold Surges 8 Per Cent In January On Reignited Global Risks

Commodities / Gold and Silver 2015 Feb 02, 2015 - 01:46 PM GMT

By: GoldCore

Commodities

In January, gold surged 8 per cent in dollar terms, 11 per cent in pound terms and a very large 16 per cent in euro terms. January’s 8.4% gain for gold in dollar terms was the best month in terms of price gains in three years.

Thus once again, gold bullion performed its role as a hedging instrument and a safe haven asset in January as the outlook became decidedly more uncertain – particularly in the Eurozone.


Gold in Euros – 1 Month (Thomson Reuters)

Gold’s 8.4% gain in January is its largest single month rise since 2012. Figures released on Friday indicate that US GDP was down sharply to 2.6% in the fourth quarter of 2014, following a 3rd quarter surge at 5% as low oil prices begin to take their toll on the shale oil industry and the sectors that depend on it.

Unless the U.S. economy begins to grow more robustly, it is unlikely that the Federal Reserve will be able to raise rates any time soon. This should support sentiment towards gold and lead to further demand.

Meanwhile, this morning came further confirmation that Europe as a whole has sunk into deflation – year on year prices declined by 0.6%. The chronically fragile European banking system cannot afford a prolonged bout of deflation.

Gold in British Pounds – 1 Month (Thomson Reuters)

Central banks, including the Bank of England, have been fighting this process since 2008 – with very mixed success. We now appear to have reached a tipping point.

If the economies of Europe cannot reverse the trend and generate sustainable economic growth, the process will begin to feed on itself leading to company failures, bank failures and contagion – the ramifications of which will almost certainly include bail-ins.

However, given the intensification of currency wars, where countries devalue their currencies to gain a competitive advantage for their exports, it is difficult to envision a scenario where European prices will rise in the short term.

Gold is fulfilling its important role as safe haven in this environment. The toxic global macroeconomic picture, the overtly hostile language between the NATO and Russia, monetary uncertainty and currency debasement is boosting the appeal of gold and silver bullion.

The most dramatic exemplification of macroeconomic stress was the capitulation by the Swiss National Bank in removing its peg to the euro, followed by Mario Draghi’s announcement of a larger than expected ECB QE program.

Syriza have earned the hostility of the Troika while encouraging politicians and governments in the struggling European periphery. France have now given their backing to the new Greek government – a move which is bound to generate tension between France and German hawks and France and the IMF and ECB.

The warming Cold War has seen an intensification in brutality in the civil war in Ukraine. The future of the euro is in doubt with the accession to power of the new government in Greece. It appears intent and determined to looking after the interests of the Greek people and nation – rather than banks, and sections of the EU, the IMF and the ECB.

Bullion dealers, mints and refineries we spoke to at the World Money Fair in Berlin at the weekend all confirmed a marked increase in demand for gold and silver bullion in January.

Most expect this to continue in 2015 as the risks outlined are not going to abate anytime soon. Indeed, they are likely to deepen and intensify.

Diversification remains vitally important. Now is the time to reduce weightings to over valued risk assets such as equities and bonds, and increase allocations to undervalued safe haven gold bullion.

DAILY MARKET UPDATE

Today’s AM fix was USD 1,274.25, EUR 1,122.69 and GBP 847.92 per ounce.
Friday’s AM fix was USD 1,263.50, EUR 1,114.98 and GBP 837.42 per ounce.

Silver’s down 1% today, meanwhile, platinum’s down 0.5%,and palladium is marginally higher.

Gold in US Dollars – 3 Months (Thomson Reuters)

In Singapore, gold for immediate delivery steadied above $1,275 an ounce on Monday after posting its biggest monthly gain in three years in the prior session following weaker-than-expected U.S. economic growth in the fourth quarter. Bullion is likely to maintain its safe-haven appeal amid renewed concerns over the Eurozone and the global economy.

Gold prices have fallen marginally in early European trading, touching a session low just below the $1,275/oz mark, around 0.5% below where they ended Friday.

Gold and silver both rose on Friday but were lower for the week – gold by 0.7 per cent and silver by 5.7 per cent. Even after the falls last week, the precious metals had impressive gains for the month of January – gold surged 8 per cent and silver by 10.3 per cent in dollar terms and by more in other currencies.

This update can be found on the GoldCore blog here.

Mark O'Byrne

Director

IRL
63
FITZWILLIAM SQUARE
DUBLIN 2

E info@goldcore.com

UK
NO. 1 CORNHILL
LONDON 2
EC3V 3ND

IRL +353 (0)1 632 5010
UK +44 (0)203 086 9200
US +1 (302)635 1160

W www.goldcore.com

WINNERS MoneyMate and Investor Magazine Financial Analysts 2006

Disclaimer: The information in this document has been obtained from sources, which we believe to be reliable. We cannot guarantee its accuracy or completeness. It does not constitute a solicitation for the purchase or sale of any investment. Any person acting on the information contained in this document does so at their own risk. Recommendations in this document may not be suitable for all investors. Individual circumstances should be considered before a decision to invest is taken. Investors should note the following: Past experience is not necessarily a guide to future performance. The value of investments may fall or rise against investors' interests. Income levels from investments may fluctuate. Changes in exchange rates may have an adverse effect on the value of, or income from, investments denominated in foreign currencies. GoldCore Limited, trading as GoldCore is a Multi-Agency Intermediary regulated by the Irish Financial Regulator.

GoldCore is committed to complying with the requirements of the Data Protection Act. This means that in the provision of our services, appropriate personal information is processed and kept securely. It also means that we will never sell your details to a third party. The information you provide will remain confidential and may be used for the provision of related services. Such information may be disclosed in confidence to agents or service providers, regulatory bodies and group companies. You have the right to ask for a copy of certain information held by us in our records in return for payment of a small fee. You also have the right to require us to correct any inaccuracies in your information. The details you are being asked to supply may be used to provide you with information about other products and services either from GoldCore or other group companies or to provide services which any member of the group has arranged for you with a third party. If you do not wish to receive such contact, please write to the Marketing Manager GoldCore, 63 Fitzwilliam Square, Dublin 2 marking the envelope 'data protection'

GoldCore 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