Best of the Week
Most Popular
1. TESLA! Cathy Wood ARK Funds Bubble BURSTS! - 12th May 21
2.Stock Market Entering Early Summer Correction Trend Forecast - 10th May 21
3.GOLD GDX, HUI Stocks - Will Paradise Turn into a Dystopia? - 11th May 21
4.Crypto Bubble Bursts! Nicehash Suspends Coinbase Withdrawals, Bitcoin, Ethereum Bear Market Begins - 16th May 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.Cathy Wood Ark Invest Funds Bubble BURSTS! ARKK, ARKG, Tesla Entering Severe Bear Market - 13th May 21
7.Stock Market - Should You Be In Cash Right Now? - 17th May 21
8.Gold to Benefit from Mounting US Debt Pile - 14th May 21
9.Coronavius Covid-19 in Italy in August 2019! - 13th May 21
10.How to Invest in HIGH RISK Tech Stocks for 2021 and Beyond - Part 2 of 2 - 18th May 21
Last 7 days
Coinbase vs Binance for Bitcoin, Ethereum Crypto Trading & Investing During Bear Market 2021 - 11th Jun 21
Gold Price $4000 – Insurance, A Hedge, An Investment - 11th Jun 21
What Drives Gold Prices? (Don't Say "the Fed!") - 11th Jun 21
Why You Need to Buy and Hold Gold Now - 11th Jun 21
Big Pharma Is Back! Biotech Skyrockets On Biogen’s New Alzheimer Drug Approval - 11th Jun 21
Top 5 AI Tech Stocks Trend Analysis, Buying Levels, Ratings and Valuations - 10th Jun 21
Gold’s Inflation Utility - 10th Jun 21
The Fuel Of The Future That’s 9 Times More Efficient Than Lithium - 10th Jun 21
Challenges facing the law industry in 2021 - 10th Jun 21
SELL USDT Tether Before Ponzi Scheme Implodes Triggering 90% Bitcoin CRASH in Cryptos Lehman Bros - 9th Jun 21
Stock Market Sentiment Speaks: Prepare For Volatility - 9th Jun 21
Gold Mining Stocks: Which Door Will Investors Choose? - 9th Jun 21
Fed ‘Taper’ Talk Is Back: Will a Tantrum Follow? - 9th Jun 21
Scientists Discover New Renewable Fuel 3 Times More Powerful Than Gasoline - 9th Jun 21
How do I Choose an Online Trading Broker? - 9th Jun 21
Fed’s Tools are Broken - 8th Jun 21
Stock Market Approaching an Intermediate peak! - 8th Jun 21
Could This Household Chemical Become The Superfuel Of The Future? - 8th Jun 21
The Return of Inflation. Can Gold Withstand the Dark Side? - 7th Jun 21
Why "Trouble is Brewing" for the U.S. Housing Market - 7th Jun 21
Stock Market Volatility Crash Course (VIX vs VVIX) – Learn How to Profit From Volatility - 7th Jun 21
Computer Vision Is Like Investing in the Internet in the ‘90s - 7th Jun 21
MAPLINS - Sheffield Down Memory Lane, Before the Shop Closed its Doors for the Last Time - 7th Jun 21
Wire Brush vs Block Paving Driveway Weeds - How Much Work, Nest Way to Kill Weeds? - 7th Jun 21
When Markets Get Scared and Reverse - 7th Jun 21
Is A New Superfuel About To Take Over Energy Markets? - 7th Jun 21
Why Tether USDT, Stable Scam Coins Could COLLAPSE the Crypto Markets - Black Swan 2021 - 6th Jun 21
Stock Market: 4 Tips for Investing in Gold - 6th Jun 21
Apple (AAPL) Summer Correction Stock Trend Analysis - 5th Jun 21
Stock Market Sentiment Speaks: I 'Believe' We Rally Into A June Swoon - 5th Jun 21
Stock Market Russell 2000 After Reaching A Trend Channel High Flags Out - 5th Jun 21
Money Is Cheap, Own Gold - 5th Jun 21
Bitcoin and Ravencoin Cryptos CRASH Bear Market Buying Levels Price Targets - 4th Jun 21
Scan Computers - How to Test New Systems CPU, GPU and Hard Drive Stability With Free Software - 4th Jun 21
Hedge Funds Getting Bullish on Gold - 4th Jun 21
THERE ARE NO SOLUTIONS When the Media is the VIRUS - 4th Jun 21
Investors Who Blindly Trust the ‘Experts’ Will Get Left Behind - 4th Jun 21
US Stock Market Indexes Consolidate Into Flagging Pattern – Watch For Aggressive Trending Soon - 4th Jun 21
Microsoft (MSFT) Stock Trend Analysis - 3rd Jun 21
No More Market Bloodbath – Beyond Cryptos - 3rd Jun 21
Bank run, or run from the banks? - 3rd Jun 21
This Chart Shows When Gold Stocks Will Explode - 3rd Jun 21
The Meaning Behind Gold’s Triple Top - 2nd Jun 21
Stock Market Breakout Or Breakdown – What Does The Next Big Trend Look Like? - 2nd Jun 21
Biden’s Alternate Inflation Universe - 2nd Jun 21
What You Should Know Before Buying Car Insurance - 2nd Jun 21
Amazon (AMZN) Stock Summer Prime Day Discount Sale - 1st Jun 21
Gold Investor's Survival Guide - 1st Jun 21
Silver and Copper to Benefit from Global Electrification Push - 1st Jun 21
Will Gold Shine Under Bidenomics? - 1st Jun 21
Stock Market Buy the Dip, Again?! - 1st Jun 21
Stock Market Consolidation Ahead - 1st Jun 21
Stock Market Summer Correction Review, Crypto CRASH, Bitcoin Bear Market Initial Targets - 31st May 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Gold and Oil Slump as Hurricane Gustav Weakens

Commodities / Gold & Silver Sep 01, 2008 - 10:43 AM GMT

By: Adrian_Ash

Commodities THE SPOT PRICE OF GOLD slipped out of a tight 0.5% range lunchtime in London on Monday, moving below last week's close at $831 per ounce as world stock markets fell and bond prices rose.

Crude oil slid back to $114 a barrel as Hurricane Gustav moved towards Louisiana , closing every oil-rig in the Gulf of Mexico but not gaining strength as it approached a near-deserted New Orleans .


Over in Tokyo , the Nikkei stock index ended the first day of Sept. some 15% below its start of the year.

Here in London , the FTSE100 dropped 80 points at the opening to stand at 5,587 by late morning – also 15% down for '08 to date.

"The International Energy Agency (IEA) has pledged to release emergency oil supplies if hurricane Gustav disrupts oil infrastructure in the Gulf of Mexico ," notes Manqoba Madinane in today's Gold Market report for Standard Bank.

"This should absorb the speculative premium in crude oil prices and render an oil price rally unlikely today...[keeping] precious metal investment sentiment subdued amid thin market trading volumes into the New York session."

With Wall Street closed for the Labor Day holiday, the US Dollar continued to rise on the currency markets this morning, pushing the Euro back towards $1.4600.

The British Pound meanwhile sank to its lowest level vs. the Dollar since April 2006 after the UK finance minister, Alistair Darling, said in a weekend newspaper interview that the current economic turmoil – the worst in 60 years, be claimed, ignoring the recessions of the 1970s, '80s and '90s – is partly his government's fault.

Today brought news that UK home-loans sank to a fresh low of just 33,000 in July – down more than 70% from the same month last year.

Despite the collapse in residential UK real estate, however – now priced 10% below the all-time peak of summer '07 – the country's money supply continues to expand at a near-record pace.

New borrowing by hedge funds, stock brokers and other financial corporations grew by 31% in the year-to-July – a fresh all-time record and more than twice the average annualized growth so far this decade.

Today the Gold Price in Pounds Sterling – which has more than doubled in the last three years – touched a four-week high above £462.50 per ounce.

"[In Dollars] still 835 is the big level," says Phil Smith's technical analysis for Reuters India.

"All the recent closes have been below and US trading on Friday did not break the pattern. One to watch for sure and a break above would set up a move to the next resistance point [at 859]."

In the Gold Futures market last week, commercial traders – including refinery groups looking to protect themselves against a changing Gold Price – grew their bullish bets by 8% according to the latest official data.

That took the number of outstanding "long" positions held by gold-industry players to a 15-month high. Their "short" positions were little changed, meantime. So as a proportion of their total position, bullish contracts rose above one-in-three of all contracts held by commercial traders – the largest proportion since the same week in 2007.

Hedge funds, in contrast – and along with other speculative players in US gold futures – rapidly added to their bearish positions, says the Commitment of Traders data. They added one new "short" contract for every three already open.

Overall, these non-commercial traders pushed their bullish ratio down further from the recent record of 89% to just 79% – again, the same level as the end of Aug. '07, just before Gold Prices leapt by more than one-half inside six month.

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