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
BREWING FINANCIAL CRISIS 2.0 Suggests RECESSION 2022 - 28th Jan 22
Financial Stocks Sector ETF XLF $37.50 Continues To Present Opportunities - 28th Jan 22
Stock Market Rushing Headlong - 28th Jan 22
The right way to play Climate Change Investing (not green energy stocks) - 28th Jan 22
Why Most Investors LOST Money by Investing in ARK FUNDS - 27th Jan 22
The “play-to-earn” trend taking the crypto world by storm - 27th Jan 22
Quantum AI Stocks Investing Priority - 26th Jan 22
Is Everyone Going To Be Right About This Stocks Bear Market?- 26th Jan 22
Stock Market Glass Half Empty or Half Full? - 26th Jan 22
Stock Market Quoted As Saying 'The Reports Of My Demise Are Greatly Exaggerated' - 26th Jan 22
The Synthetic Dividend Option To Generate Profits - 26th Jan 22
The Beginner's Guide to Credit Repair - 26th Jan 22
AI Tech Stocks State Going into the CRASH and Capitalising on the Metaverse - 25th Jan 22
Stock Market Relief Rally, Maybe? - 25th Jan 22
Why Gold’s Latest Rally Is Nothing to Get Excited About - 25th Jan 22
Gold Slides and Rebounds in 2022 - 25th Jan 22
Gold; a stellar picture - 25th Jan 22
CATHY WOOD ARK GARBAGE ARK Funds Heading for 90% STOCK CRASH! - 22nd Jan 22
Gold Is the Belle of the Ball. Will Its Dance Turn Bearish? - 22nd Jan 22
Best Neighborhoods to Buy Real Estate in San Diego - 22nd Jan 22
Stock Market January PANIC AI Tech Stocks Buying Opp - Trend Forecast 2022 - 21st Jan 21
How to Get Rich in the MetaVerse - 20th Jan 21
Should you Buy Payment Disruptor Stocks in 2022? - 20th Jan 21
2022 the Year of Smart devices, Electric Vehicles, and AI Startups - 20th Jan 21
Oil Markets More Animated by Geopolitics, Supply, and Demand - 20th Jan 21
WARNING - AI STOCK MARKET CRASH / BEAR SWITCH TRIGGERED! - 19th Jan 22
Fake It Till You Make It: Will Silver’s Motto Work on Gold? - 19th Jan 22
Crude Oil Smashing Stocks - 19th Jan 22
US Stagflation: The Global Risk of 2022 - 19th Jan 22
Stock Market Trend Forecast Early 2022 - Tech Growth Value Stocks Rotation - 18th Jan 22
Stock Market Sentiment Speaks: Are We Setting Up For A 'Mini-Crash'? - 18th Jan 22
Mobile Sports Betting is on a rise: Here’s why - 18th Jan 22
Exponential AI Stocks Mega-trend - 17th Jan 22
THE NEXT BITCOIN - 17th Jan 22
Gold Price Predictions for 2022 - 17th Jan 22
How Do Debt Relief Services Work To Reduce The Amount You Owe? - 17th Jan 22
RIVIAN IPO Illustrates We are in the Mother of all Stock Market Bubbles - 16th Jan 22
All Market Eyes on Copper - 16th Jan 22
The US Dollar Had a Slip-Up, but Gold Turned a Blind Eye to It - 16th Jan 22
A Stock Market Top for the Ages - 16th Jan 22
FREETRADE - Stock Investing Platform, the Good, Bad and Ugly Review, Free Shares, Cancelled Orders - 15th Jan 22
WD 14tb My Book External Drive Unboxing, Testing and Benchmark Performance Amazon Buy Review - 15th Jan 22
Toyland Ferris Wheel Birthday Fun at Gulliver's Rother Valley UK Theme Park 2022 - 15th Jan 22
What You Should Know About a TailoredPay High Risk Merchant Account - 15th Jan 22

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Gold Finds Strong Physical Demand Even as U.S. Dollar Rallies

Commodities / Gold and Silver 2010 Mar 30, 2010 - 08:18 AM GMT

By: Adrian_Ash

Commodities

THE PRICE OF GOLD gave back a 0.6% rise as New York trade began on Tuesday, slipping back to $1107 an ounce as world stock markets struggled near 18-month highs and the Dollar rose on the currency market.


Silver Prices earlier rose to their best level since March 18, up 4.4% from last week's low, to hit $17.41 an ounce at the London Fix.

German Bunds rose slightly, UK gilts fell, and US Treasury bonds held flat, with 10-year debt yielding 3.87%.

Crude oil ticked below $82 per barrel.

"Strong underlying physical demand for gold has continued," reports Walter de Wet at Standard Bank in London, "[and] in recent days has become even stronger.

"There is still little scrap coming to market, and selling hasn't been prevalent in 2010."

"Given the lack of scrap, once the Dollar starts to depreciate – which we expect in second-half 2010 – the Gold Price could climb substantially further."

On the data front today, German import prices rose more sharply than expected in Feb., adding 1.0% from Jan.

Raw input prices for Canadian manufacturers also extended their recent rise, defying analyst forecasts of a 1% drop.

Official UK data meantime revised late-2009's economic contraction to 3.1% of annual GDP, rather than the 5.3% first estimated.

Sterling jumped on the news, rising to $1.51 – and adding 3¢ from last week's 10-month low to the Dollar – despite weak poll results for the opposition Conservative Party, widely assumed to be the City's choice for this spring's General Election.

The Euro failed to hold an early 1-week high, in contrast, after last week's aid package for Greece did little to reduce Athens' financing costs in the bond market, and the Irish government began operating an €81 billion "bad bank" housing bad real-estate loans made before the global financial crisis.

Gold priced in Euros held above €823 an ounce, trading within 2% of this month's new all-time high.

The Gold Price in Sterling slipped to £734 an ounce, down 1.7% from last Friday's finish – its second-highest weekly close.

"Gold is one of those things that pops up in times when there's uncertainty and crisis," says Kimberly Sterling, a financial planner at Resource Consulting Group in Orlando, to the Orlando Sentinel today.

"It is like someone who bought real estate in 2006, at the height of that bubble. You could get hurt really badly...When it pops, it is too late to get in."

"I disagree that this is a bubble we're seeing now," says Al Baker chief investment officer for another local advisor, Resource Group of Winter Park.

"Bubbles only last a short period of time, a couple of years at most, while a trend builds upon itself and goes higher over time – 10 years in this case."

Over in China, in contrast, "A high savings ratio, plus a lack of alternative investment vehicles, points to a growing interest among the Chinese in commodity investment," notes Rhona O'Connell of the GFMS Analytics consultancy, writing at MineWeb.

"Gold Coins and bar hoarding have been growing strongly in recent years, but it is believed that the amount of gold currently in private hands is much lower than that in countries such as India and Vietnam."

Reporting on the new World Gold Council research on China's booming gold demand, "The domestic market is by no means mature," says O'Connell, "and the implication is that Chinese investors are much less likely to sell into strength than some of their counterparts elsewhere."

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 2010

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.


© 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