Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
Peloton 35% CRASH a Lesson of What Happens When One Over Pays for a Loss Making Growth Stock - 1st Dec 21
Stock Market Sentiment Speaks: I Fear For Retirees For The Next 20 Years - 1st Dec 21 t
Will the Anointed Finanical Experts Get It Wrong Again? - 1st Dec 21
Main Differences Between the UK and Canadian Gaming Markets - 1st Dec 21
Bitcoin Price TRIGGER for Accumulating Into Alt Coins for 2022 Price Explosion - 30th Nov 21
Omicron Covid Wave 4 Impact on Financial Markets - 30th Nov 21
Can You Hear It? That’s the Crowd Booing Gold’s Downturn - 30th Nov 21
Economic and Market Impacts of Omicron Strain Covid 4th Wave - 30th Nov 21
Stock Market Historical Trends Suggest A Strengthening Bullish Trend In December - 30th Nov 21
Crypto Market Analysis: What Trading Will Look Like in 2022 for Novice and Veteran Traders? - 30th Nov 21
Best Stocks for Investing to Profit form the Metaverse and Get Rich - 29th Nov 21
Should You Invest In Real Estate In 2021? - 29th Nov 21
Silver Long-term Trend Analysis - 28th Nov 21
Silver Mining Stocks Fundamentals - 28th Nov 21
Crude Oil Didn’t Like Thanksgiving Turkey This Year - 28th Nov 21
Sheffield First Snow Winter 2021 - Snowballs and Snowmen Fun - 28th Nov 21
Stock Market Investing LESSON - Buying Value - 27th Nov 21
Corsair MP600 NVME M.2 SSD 66% Performance Loss After 6 Months of Use - Benchmark Tests - 27th Nov 21
Stock Maket Trading Lesson - How to REALLY Trade Markets - 26th Nov 21
SILVER Price Trend Analysis - 26th Nov 21
Federal Reserve Asks Americans to Eat Soy “Meat” for Thanksgiving - 26th Nov 21
Is the S&P 500 Topping or Just Consolidating? - 26th Nov 21
Is a Bigger Drop in Gold Price Just Around the Corner? - 26th Nov 21
Financial Stocks ETF Sector XLF Pullback Sets Up A New $43.60 Upside Target - 26th Nov 21
A Couple of Things to Think About Before Buying Shares - 25th Nov 21
UK Best Fixed Rate Tariff Deal is to NOT FIX Gas and Electric Energy Tariffs During Winter 2021-22 - 25th Nov 21
Stock Market Begins it's Year End Seasonal Santa Rally - 24th Nov 21
How Silver Can Conquer $50+ in 2022 - 24th Nov 21
Stock Market Betting on Hawkish Fed - 24th Nov 21
Stock Market Elliott Wave Trend Forecast - 24th Nov 21
Your once-a-year All-Access Financial Markets Analysis Pass - 24th Nov 21
Did Zillow’s $300 million flop prove me wrong? - 24th Nov 21
Now Malaysian Drivers Renew Their Kurnia Car Insurance Online With Fincrew.my - 24th Nov 21
Gold / Silver Ratio - 23rd Nov 21
Stock Market Sentiment Speaks: Can We Get To 5500SPX In 2022? But 4440SPX Comes First - 23rd Nov 21
A Month-to-month breakdown of how Much Money Individuals are Spending on Stocks - 23rd Nov 21
S&P 500: Rallying Tech Stocks vs. Plummeting Oil Stocks - 23rd Nov 21
Like the Latest Bond Flick, the US Dollar Has No Time to Die - 23rd Nov 21
Why BITCOIN NEW ALL TIME HIGH Changes EVERYTHING! - 22nd Nov 21
Cannabis ETF MJ Basing & Volatility Patterns - 22nd Nov 21
The Most Important Lesson Learned from this COVID Pandemic - 22nd Nov 21
Dow Stock Market Trend Analysis - 22nd Nov 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Gold Hits New UK Sterling High

Commodities / Gold & Silver 2009 Nov 20, 2009 - 08:09 AM GMT

By: Adrian_Ash

Commodities

THE PRICE OF GOLD slipped for the second day running for Dollar investors early in London on Friday, nearing the weekend 1.7% above last week's finish as commodities fell, government bonds rose, and world stock markets dropped.

Gold priced in British Pounds hit a new all-time record at the AM Gold Fix of £690.83 per ounce.


Agreed as a clearing and benchmark price twice each day, the Fix has risen by 280% for UK gold buyers from this time 10 years ago.

"We do not expect much direction from currencies," says today's gold-market comment from Standard Bank analyst Walter de Wet.

"In fact, correlations between commodities and the Dollar have fallen substantially. Look to equities for direction."

The price of gold has risen by 19% vs. the Dollar since the start of Sept. Priced against a basket of currencies, the Dollar itself has lost 4.5% of its value since then.

The S&P 500 index of US stocks has risen 7.3% in that time.

Today world stock markets slipped back, dropping for the seventh day out of 15 trading sessions in November so far.

Silver traded wholesale in 1,000-ounce bars slid further from Wednesday's 16-month high, recording a London Fix of $18.18 and dropping almost 4.0% in 48 hours.

"Raise interest rates with 15 million jobless and 25 million part-time working Americans?" writes Pimco bond-fund giant Bill Gross in his latest Investment Outlook.

"All because gold is above $1100? You must be joking or smoking something.

"We will need another 12 months of 4-5% nominal GDP growth before Bernanke and company dare lift their heads out of the 0% foxhole – mini-bubbles or not."

The Bank of Japan today kept its key interest rate at 0.1%. It was first cut below 1.0% per year in 1995.

Thursday's action saw the nominal return offered by US Treasury bills maturing in January drop below 0%, the first such sub-zero yield – before accounting for inflation – since Dec. last year.

Morgan Stanley economist Ted Wieseman attributes the sub-zero yields, caused by surging prices, to "investors stash[ing] money over year-end."

Last week's US consumer-price data showed inflation running above 2.5% annualized.

"The biggest threat to the gold price in 2010 will come from macroeconomic factors," warn VM Group analysts Matt Turner and Carl Firman today, "such as a concerted effort by the US government to rein-in the money supply and support the Dollar.

"[That] possibility, however, is remote in our view."

Estimating that the physical gold market will see demand lag supply by at least 282 tonnes in 2009, "We anticipate the surplus may be repeated in 2010," say VM, launching its latest Yellow Book of data and analysis on behalf of BNP Paribas Fortis.

"A recovery in jewelry demand [will be] offset by a decline in dehedging and a further increase in mine supply. Price direction will again depend heavily on investors’ willingness to add to their holdings."

Commenting on Europe's financial outlook, "Euro area governments...have committed 26% of GDP to supporting the financial sector," noted European Central Bank chief Jean-Claude Trichet in a keynote speech this morning in Frankfurt.

"The total amount of outstanding ECB refinancing [to commercial banks] is around 60% larger than it was before the market turmoil. This reflects also the need for the ECB to 'intermediate' parts of the money market."

New data today showed Germany's wholesale price index holding flat in Oct., defying market expectations of a slight increase as the rising Euro undid crude oil's jump in Dollars.

Eurozone interest rates now stand at 1.0%. Today the gold price in Euros held €1 shy of yesterday's nine-month high at €770 an ounce.

Eurozone investors looking to buy gold have seen the price rise 15% since the start of Sept. this year and more than 135% since Nov. 2004.

By Adrian Ash
BullionVault.com

Gold price chart, no delay | Free Report: 5 Myths of the Gold Market
Formerly 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