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
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

Gold Demand Strong as U.S. Jobless Rate Jumps

Commodities / Gold & Silver 2009 Jan 09, 2009 - 09:26 AM GMT

By: Adrian_Ash

Commodities THE LIVE PRICE of wholesale Gold Bullion bounced in a $10 range early in London on Friday, trading just shy of $860 an ounce as new US data confirmed a six-decade record in US job losses.

World equities fell while the US Dollar rose sharply on the currency market.


Crude oil headed for a near-record 11% week-on-week drop.

"All up the technical picture for Gold is [also] pointing to the downside near-term," reckons Phil Smith in his latest analysis for Reuters India, "but there is big support at the $835 level.

"That's the peak gold hit in 1980 on a combination of high inflation linked to oil prices, the Soviet invasion of Afghanistan, and the impact of the Iranian revolution."

Friday morning saw the Gold Price in Sterling – down almost 9% from Monday's new all-time record highs – trade at £560 an ounce, almost twice the peak of Jan. 1980.

The Gold Price in Euros stood at €627, some 15% below its record peak of 29 years ago (Deutsche Mark equivalent).

Over on the forex market today, the single currency headed for its worst-ever week vs. the British Pound – despite the new all-time low in official UK interest rates – with RBC Capital Markets in Toronto calling it lower still ahead of Europe's interest-rate decision next Thursday.

BNP Paribas said it sees the Euro also sliding against the Dollar if Germany is forced to create a publicly-owned "bad bank" to buy toxic assets from the country's ailing finance houses.

Commerzbank today accepted a €10 billion capital injection from the federal government – giving the state a 25% stake in Germany's No.2 bank – after the acquisition of Dresdner Bank threatened its balance-sheet.

"The final quarter of 2008 may have been worse than we expected," said Bundesbank president Axel Weber of the German economy in Cologne late on Thursday.

"This would weigh on our growth projections for the current year."

The US jobless rate rose to 7.2% of the workforce in Dec., the Bureau for Labor Studies announced today, as Wall Street stock futures headed for a sharp drop at the opening.

Looking further ahead for Gold in 2009 , "People are genuinely worried about what the world is going to look like [this year]," says Gary Dugan, chief investment officer at US giant Merrill Lynch – the former investment bank rescued in a $50 billion takeover by Bank of America last Sept.

"It is amazing how many clients want physical Gold Bullion , not ETFs ," Dugan is quoted by The Daily Telegraph .

Today's technical analysis from the Mitsui precious-metals team in London pegs support at $830 with resistance at Thursday's top of $865.

Gold "has gravitated back to the 100-day moving average at $853, with a relatively quiet start to the day," it adds.

For the near-term, "Currency market volatility should continue to take precedence in precious metals," says today's note from Standard Bank.

"This could see most risk-averse precious metals investors opting to remain on the sidelines."

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 2009

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