Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
S&P Stock Market Trend Forecast to Dec 2024 - 16th Apr 24
No Deposit Bonuses: Boost Your Finances - 16th Apr 24
Global Warming ClImate Change Mega Death Trend - 8th Apr 24
Gold Is Rallying Again, But Silver Could Get REALLY Interesting - 8th Apr 24
Media Elite Belittle Inflation Struggles of Ordinary Americans - 8th Apr 24
Profit from the Roaring AI 2020's Tech Stocks Economic Boom - 8th Apr 24
Stock Market Election Year Five Nights at Freddy's - 7th Apr 24
It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- 7th Apr 24
AI Revolution and NVDA: Why Tough Going May Be Ahead - 7th Apr 24
Hidden cost of US homeownership just saw its biggest spike in 5 years - 7th Apr 24
What Happens To Gold Price If The Fed Doesn’t Cut Rates? - 7th Apr 24
The Fed is becoming increasingly divided on interest rates - 7th Apr 24
The Evils of Paper Money Have no End - 7th Apr 24
Stock Market Presidential Election Cycle Seasonal Trend Analysis - 3rd Apr 24
Stock Market Presidential Election Cycle Seasonal Trend - 2nd Apr 24
Dow Stock Market Annual Percent Change Analysis 2024 - 2nd Apr 24
Bitcoin S&P Pattern - 31st Mar 24
S&P Stock Market Correlating Seasonal Swings - 31st Mar 24
Here's a Dirty Little Secret: Federal Reserve Monetary Policy Is Still Loose - 31st Mar 24
Tandem Chairman Paul Pester on Fintech, AI, and the Future of Banking in the UK - 31st Mar 24
Stock Market Volatility (VIX) - 25th Mar 24
Stock Market Investor Sentiment - 25th Mar 24
The Federal Reserve Didn't Do Anything But It Had Plenty to Say - 25th Mar 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Gold Tumbles in Quiet Start to 2009

Commodities / Gold & Silver 2009 Jan 02, 2009 - 07:32 AM GMT

By: Adrian_Ash

Commodities THE SPOT PRICE of wholesale gold bullion slipped into the first, quiet session of 2009 trading on Friday, recording a London AM Gold Fix of $869.75 an ounce – some 3.4% above the start of 2008 for Dollar investors.

The Gold Price in Sterling held just shy of £600 an ounce, higher by more than 40% from this time last year.

French, German and Italian buyers saw the AM Fix set at €623.65 – up almost 9% from the first session of 2008.

"While Gold looks strong at the moment, it's important to keep in mind that the world's largest consumer of gold – India – has not been buying," notes the precious metals team at Mitsui in London today.

The Bombay Bullion Association said Thursday that total Indian gold imports sank by 81% last month from the same period in 2007.

"For Gold to continue higher, therefore, a significant amount of weight will be placed on the investors," says Mitsui. "With exchange positions down over 50% from last February's levels, one would think that there is room for some investors to add gold to their portfolios."

Latest data from the US Gold Futures market showed hedge funds & other "large speculators" growing their bullish bets to a 3-month record in the week to Dec. 22nd. As a proportion of all speculative trades, the bullish ratio rose to a 10-month high of 91%.

But overall, the outstanding number of gold futures and options contracts remained low – down by more than 45% from the record peak of Jan. 2008.

Meantime on the currency market today, light volume forced a jump in volatility, with the Euro gaining and then dumping 4¢ to the Dollar. The Japanese Yen fell to a 3-week low of ¥91.40 per Dollar.

Tokyo remained closed for business, and won't re-open until Tuesday. European stock markets added 2% on average in thin trade, while government bond prices fell.

After the US reported a new record low for Consumer Confidence on Wednesday, new data released in London today showed UK house prices falling 16% for 2008 as a whole on average.

The number of new mortgage approvals fell to 27,000 in Dec. – a new three-decade low. Money supply growth continued to leap, however, up more than 16.5% year-on-year as the Bank of England pumped money into the banking system.

Europe's Purchasing Managers Index (PMI) for the manufacturing sector showed a new record low today, down to 33.9 for Dec. from the previous month's reading of 35.6.

Looking ahead to Gold in 2009 , "The US Federal Reserve has publicly stated they're going to print as many dollars as necessary to prevent the system from melting down," says Hans Goetti, chief investment officer in Singapore for LGT Bank of Lichtenstein, speaking to Bloomberg.

"For me the conclusion is clear: if you want to keep your purchasing power you have to be in something solid like gold."

By Adrian Ash

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 , 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

© 2005-2022 - 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