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
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
It’s Not Technology but the Fed That Is Taking Away Jobs - 16th May 19
Learn to Protect your Forex Trading Capital - 16th May 19
Gold Ratio Charts Offer The Keys to the Bull Market - 16th May 19
Is Someone Secretly Smashing the Stock Market at Night? - 16th May 19

Market Oracle FREE Newsletter

U.S. House Prices Analysis and Trend Forecast 2019 to 2021

Gold Jumps as Stocks Slump

Commodities / Gold & Silver 2009 Feb 20, 2009 - 08:14 AM GMT

By: Adrian_Ash

Commodities THE PRICE OF SPOT GOLD jumped Friday morning in London, touching $996.50 per ounce and nearing its ninth weekly gain in 3 months as world stock markets slumped yet again.

Recording the highest London Gold Fix since 19th March '08 – the day after gold hit all-time highs at $1,032 on the collapse of Bear Stearns – gold surged $15 an ounce in two hours.

Defying analysts who saw "signs of fatigue" in the market, the Gold Price also hit new record highs versus all other currencies bar the Japanese Yen.

So far in 2009 Gold has now gained 13% vs. the Chinese Yuan. Measured against the old German Deutsche Mark – most stable major world currency during the inflationary '70s – gold shot more than 6% above it previous high of 21st Jan. 1980.

"Today is a significant day for gold as a close above the $988 resistance will confirm the next move in this bull run," reckon London dealers Mitsui.

Repeating that silver – up nearly 7% so far this week – will continue to "take its cue from gold," Mitsui believes that a failure to hold $988 may bring "some liquidation to the marketplace.

"[But] despite several attempts at prices sub-$970, gold continues to bounce back, showing its resilience."

Yesterday the SPDR Gold ETF trust fund reported adding almost 5 tonnes of gold to its assets – "a bit lighter than we have seen this month," notes Mitsui, wondering if "this decline is a sign that the investors are becoming exhausted or waiting for a pullback?"

Friday morning saw the Gold Price in Swiss Francs jump above CHF 1,175 per ounce – higher by more than 27% from New Year's Day – on news of a blow to Switzerland's model of Bankgeheimnis (banking secrecy).

Threatened with a law-suit by the new Obama administration in Washington, Swiss banking giant UBS agreed to pay $780 million in fines and reveal details of 52,000 accounts belonging to US citizens – worth $14.8 billion – apparently used to avoid US income tax.

"Swiss banks have [also] given billions of credit to Eastern Europe," notes a report in the Tagesanzeiger newspaper.

"Now the customers cannot pay back the money."

Writing for the Financial Times , former Bank of England policymaker Willem Buiter says capital controls on the free movement of money are now "most Central and Eastern Europe (CEE) and among the [former Soviet] CIS countries.

"We can expect to see capital controls imposed even by some of the European Union members from Eastern Europe that have not yet adopted the Euro as their currency," Buiter goes on, citing "the Baltics, Bulgaria, the Czech Republic, Hungary, Poland, and Romania."

Meantime on the equity markets today – where the London Stock Exchange called for the UK government to suspend Stamp Duty and increase tax-relief to venture capital trusts – stocks fell for the ninth session running according to the MSCI world index.

In Stockholm, ailing car-maker Saab – a division of US auto-giant General Motors – filed for legal protection against its creditors in a bid to avoid bankruptcy.

Here in London, mining giant Anglo American sank 12% on the FTSE100 after scrapping its dividend and announcing 9,000 job losses worldwide.

"The breadth and severity of the global economic downturn...are difficult to overstate," said CEO Cynthia Carroll.

Business activity across the 16-nation Eurozone sank in Jan. to its lowest level on the PMI's 11-year series, the Markit consultancy said today, adding that "There appears to be no sign of a bottoming out."

European stocks fell to a new 5-year low this morning after the S&P index on Wall Street dumped 5.2% Thursday to close at its lowest level since 1995.

New data this morning said US consumer prices failed to dip into deflation last month, rising 1.7% year-on-year and leaving real Federal Reserve interest rates sharply negative.

Home repossessions here in the UK last year shot more than 50% higher to a 12-year high, new figures showed.

UK car production slumped almost 59% in Jan. from a year earlier.

On the political front, meantime, the United Nations said Thursday that Iran now has enough enriched uranium to build a nuclear bomb.

Speaking in Seoul today, US secretary of state Hillary Clinton – citing a UN Security Council Resolution from 2006 – told North Korea it is "required to suspend all activities related to its ballistic missile program.

"The North should refrain from violating this resolution, and also from any and all provocative actions that could...aggravate tensions in the region."

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 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 - 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