Best of the Week
Most Popular
1. TESLA! Cathy Wood ARK Funds Bubble BURSTS! - 12th May 21
2.Stock Market Entering Early Summer Correction Trend Forecast - 10th May 21
3.GOLD GDX, HUI Stocks - Will Paradise Turn into a Dystopia? - 11th May 21
4.Crypto Bubble Bursts! Nicehash Suspends Coinbase Withdrawals, Bitcoin, Ethereum Bear Market Begins - 16th May 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.Cathy Wood Ark Invest Funds Bubble BURSTS! ARKK, ARKG, Tesla Entering Severe Bear Market - 13th May 21
7.Stock Market - Should You Be In Cash Right Now? - 17th May 21
8.Gold to Benefit from Mounting US Debt Pile - 14th May 21
9.Coronavius Covid-19 in Italy in August 2019! - 13th May 21
10.How to Invest in HIGH RISK Tech Stocks for 2021 and Beyond - Part 2 of 2 - 18th May 21
Last 7 days
The US Dollar is the Driver of the Gold & Silver Sectors - 28th Jul 21
Fed: Murderer of Markets and the Middle Class - 28th Jul 21
Gold And Silver – Which Will Have An Explosive Price Rally And Which Will Have A Sustained One? - 28th Jul 21
I Guess The Stock Market Does Not Fear Covid - So Should You? - 28th Jul 21
Eight Do’s and Don’ts For Options Traders - 28th Jul 21
Chasing Value in Unloved by Markets Small Cap Biotech Stocks for the Long-run - 27th Jul 21
Inflation Pressures Persist Despite Biden Propaganda - 27th Jul 21
Gold Investors Wavering - 27th Jul 21
Bogdance - How Binance Scams Futures Traders With Fake Bitcoin Prices to Run Limits and Margin Calls - 27th Jul 21
SPX Going for the Major Stock Market Top? - 27th Jul 21
What Is HND and How It Will Help Your Career Growth? - 27th Jul 21
5 Mobile Apps Day Traders Should Know About - 27th Jul 21
Global Stock Market Investing: Here's the Message of Consumer "Overconfidence" - 25th Jul 21
Gold’s Behavior in Various Parallel Inflation Universes - 25th Jul 21
Indian Delta Variant INFECTED! How infectious, Deadly, Do Vaccines Work? Avoid the PCR Test? - 25th Jul 21
Bitcoin Stock to Flow Model to Infinity and Beyond Price Forecasts - 25th Jul 21
Bitcoin Black Swan - GOOGLE! - 24th Jul 21
Stock Market Stalling Signs? Taking a Look Under the Hood of US Equities - 24th Jul 21
Biden’s Dangerous Inflation Denials - 24th Jul 21
How does CFD trading work - 24th Jul 21
Junior Gold Miners: New Yearly Lows! Will We See a Further Drop? - 23rd Jul 21
Best Forex Strategy for Consistent Profits - 23rd Jul 21
Popular Forex Brokers That You Might Want to Check Out - 22nd Jul 21
Bitcoin Black Swan - Will Crypto Currencies Get Banned? - 22nd Jul 21
Bitcoin Price Enters Stage #4 Excess Phase Peak Breakdown – Where To Next? - 22nd Jul 21
Powell Gave Congress Dovish Signs. Will It Help Gold Price? - 22nd Jul 21
What’s Next For Gold Is Always About The US Dollar - 22nd Jul 21
URGENT! ALL Windows 10 Users Must Do this NOW! Windows Image Backup Before it is Too Late! - 22nd Jul 21
Bitcoin Price CRASH, How to SELL BTC at $40k! Real Analysis vs Shill Coin Pumper's and Clueless Newbs - 21st Jul 21
Emotional Stock Traders React To Recent Market Rotation – Are You Ready For What’s Next? - 21st Jul 21
Killing Driveway Weeds FAST with a Pressure Washer - 8 months Later - Did it work?- Block Paving Weeds - 21st Jul 21
Post-Covid Stimulus Payouts & The US Fed Push Global Investors Deeper Into US Value Bubble - 21st Jul 21
What is Social Trading - 21st Jul 21
Would Transparency Help Crypto? - 21st Jul 21
AI Predicts US Tech Stocks Price Valuations Three Years Ahead (ASVF) - 20th Jul 21
Gold Asks: Has Inflation Already Peaked? - 20th Jul 21
FREE PASS to Analysis and Trend forecasts of 50+ Global Markets by Elliott Wave International - 20th Jul 21
Nissan to Create 1000s of jobs with electric vehicle investment in UK - 20th Jul 21
Bitcoin Halvings Price Forecast and Stock to Flow Analysis - 18th Jul 21
Dell S3220DGF Unboxing and Stand Assembly - 32 Inch 165hz Curved Gaming Monitor Amazon Discount - 18th Jul 21
What Does The Fed Mean By “Transitory Inflation” And Why Is It Important To Understand? - 18th Jul 21
Will the US stock market’s worsening breadth matter? - 18th Jul 21
Bitcoin Halving's Price Projection Forecasts Trend Trajectory - 18th Jul 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Gold Hits New Euro and GBP Highs as Trend Following Compounds Inflation and Default Fears

Commodities / Gold and Silver 2010 May 13, 2010 - 09:32 AM GMT

By: Adrian_Ash

Commodities

THE PRICE OF GOLD in terms of Euros and Sterling rose to new record highs Thursday morning in London, trading $5 below yesterday's all-time Dollar high as commodities fell and government bond prices rose.

A 2% surge in Asian stocks faded in European dealing. The Athens stock market retreated 1% by mid-afternoon.


"Unless the government of a major economy actually defaults, or the Dollar collapses, we expect gold to drop back to $1000 by the end of 2010," reckons Julian Jessop, chief international economist at Capital Economics, writing in today's Financial Times.

But "It's not just sovereign default that bond investors fear," argues Steven Barrow, chief currency strategist at Standard Bank.

"Resurgent inflation is also a worry. There may be some very early signs that these concerns could be realized in Europe."

Noting gold's fresh record highs overnight, "We expect fresh buying of gold from trend followers adding to long positions," says the latest technical analysis from bullion bank Scotia Mocatta.

"From a measured move perspective, we calculate $1338 and $1369 as Fibonacci and Elliot wave projection targets. A two-year bull channel top comes in at $1352 today."

"Silver has been similarly impressive," says a note from Japanese metals conglomerate Mitsui, "outperforming gold to the upside over the past five days and firmly establishing itself as an investment metal over that period."

Today's Silver Fix in London came in at $19.43 per ounce, a new three-decade record some 9.7% above last Friday's finish.

Gold fixed at $1235 an ounce on Thursday morning, higher by 3.0% for the week-so-far.

"The sky is really is the limit," one London trader told Platts. "It feels like some resistance around $1250, but feels more like $1300, here we come!"

Oil prices meantime fell towards $74 per barrel following yesterday's news that US crude-oil stockpiles have grown in 14 of the last 15 weeks.

New US data showed import prices rising 11.1% year-on-year in April, however, ahead of analyst forecasts.

The UK's trade deficit was significantly worse than expected in March, yawning from £2.1bn to £3.6bn and spurring a fresh drop in the Pound.

Gold priced in Sterling rose to new record highs above £843 an ounce.

The gold price in Euros set a new record-high London Gold Fix at €982.81 (€35,589 per kilo).

Money-supply growth in the Eurozone continues at a "strong annual" pace, the European Central Bank said in its latest Monthly Report today, swelling by 10.9% in March.

Traders awaiting data on the ECB's first government-bond buying operations – announced at the weekend to defend "peripheral" debt markets – reported rumors that it had bought €20m chunks of Greek, Portuguese and Irish bonds on Monday and Tuesday, followed by Greek and Portuguese bonds on Wednesday.

"For a central bank that clearly prides itself on maintaining low prices, some of the things it has done recently – especially the bond purchases – must grate with the inflation hawks on the [executive] board," says Barrow at Standard Bank.

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