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
Dow Forecasting Neural Nets, Crossing the Rubicon With Three High Risk Chinese Tech Stocks - 18th Sep 21
If Post-1971 Monetary System Is Bad, Why Isn’t Gold Higher? - 18th Sep 21
Stock Market Shaking Off the Taper Blues - 18th Sep 21
So... This Happened! One Crypto Goes From "Little-Known" -to- "Top 10" in 6 Weeks - 18th Sep 21
Why a Financial Markets "Panic" May Be Just Around the Corner - 18th Sep 21
An Update on the End of College… and a New Way to Profit - 16th Sep 21
What Kind of Support and Services Can Your Accountant Provide? Your Main Questions Answered - 16th Sep 21
Consistent performance makes waste a good place to buy stocks - 16th Sep 21
Dow Stock Market Trend Forecasting Neural Nets Pattern Recognition - 15th Sep 21
Eurozone Impact on Gold: The ECB and the Phantom Taper - 15th Sep 21
Fed To Taper into Weakening Economy - 15th Sep 21
Gold Miners: Last of the Summer Wine - 15th Sep 21
How does product development affect a company’s market value? - 15th Sep 21
Types of Investment Property to Become Familiar with - 15th Sep 21
Is This the "Kiss of Death" for the Stocks Bull Market? - 14th Sep 21
Where Are the Stock Market Fireworks? - 14th Sep 21
Play-To-Earn Cryptocurrency Games Gain More and Is Set to Expand - 14th Sep 21
The CashFX TAP Platform - Catering to Bull Investors and Bear Investors Alike - 14th Sep 21
Why every serious investor should be focused on blockchain technology - 13th Sep 21
SPX Base Projection Reached – End of the Line? - 13th Sep 21
There are diverse ways to finance the purchase of a car - 13th Sep 21
6 Tips For Wise Investment - 13th Sep 21 - Mark_Adan
Gold Price Back Below $1,800! - 10th Sep 21
The Inflation/Deflation debate wears on… - 10th Sep 21
Silver Price seen tracking Copper prices higher - 10th Sep 21
The Pitfalls of Not Using a Solicitor for Your Divorce - 10th Sep 21
Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
This Boom-Bust Cycle in US Home Ownership Should Give Home Shoppers Pause - 9th Sep 21
Stock Market September Smackdown Coming Next? - 9th Sep 21 - Monica_Kingsley
Crazy Crypto Markets How to Buy Bitcoin, Litecoin for Half Market Price and Sell for TRIPLE! - 8th Sep 21
Sun Sea and Sand UK Holidays 2021, Scarborough in VR 180 3D! - 8th Sep 21
Bitcoin BTC Price Detailed Trend Forecast Into End 2021 - 8th Sep 21
Hyper Growth Stocks - This billionaire is now using one of our top strategies - 8th Sep 21
6 common trading mistakes to avoid at all costs - 8th Sep 21
US Dollar Upswing, S&P 500 and Nasdaq Outlook - 7th Sep 21
Dovish Assassins of the USD Index - 7th Sep 21
Weak August Payrolls: Why We Should Care - 7th Sep 21
A Mixed Stock Market - Still - 6th Sep 21
Energy Metals Build Momentum; Silver & Platinum May Follow - 6th Sep 21
What‘s Not to Love About Crypto Market Fireworks - 6th Sep 21
Surging US Home Prices and Gold – What’s the Link? - 6th Sep 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Gold "Well Positioned", Hits New Euro Record, as Oil Drops with Asian Stocks

Commodities / Gold and Silver 2010 May 17, 2010 - 08:29 AM GMT

By: Adrian_Ash

Commodities

Best Financial Markets Analysis ArticleTHE PRICE OF GOLD in London's wholesale market slipped 1.2% from an early gain vs. the Dollar on Monday, touching new record highs for Euro and Sterling investors as Asian stock markets closed the day sharply lower.

European stock markets rallied as the Euro currency bounced from a new 49-month low at $1.2240.


Crude oil fell towards fresh 3-month lows against the Dollar at $71 per barrel, taking its losses for May-to-date to almost 18%.

"Gold [on Friday] achieved its seventh up-week in the past eight weeks," notes the latest technical analysis from bullion bank Scotia Mocatta.

"The top of the two-year bull channel comes in today at $1352. The higher highs and higher closes keeps the risk to the topside."

"Gold holdings by physically-backed ETFs climbed 44 tonnes in the past week alone, reaching 1,792 tonnes," says the latest Commodities Weekly note from French bank Natixis.

"We suspect that the principal buyers of this gold were from Europe, as reports indicate that traders and coin dealers in Germany and Switzerland sold volumes of bars and coins three to four times their normal levels."

The Austrian Mint says it sold more coins in the first two weeks of May than it all of Jan., Feb. and March.

On the futures market, "Gold is still well positioned to withstand a large-scale liquidation should risk aversion rise sharply," says Walter de Wet at Standard Bank this morning.

"Speculative length in gold remains at acceptable levels despite the rally seen over the past two weeks. Speculative length in silver now also seems better positioned against risk aversion.

Silver prices today held 2.7% below Thursday's two-year high of $19.90 per ounce.

New data, released by US regulator the Commodity Futures Trading Commission late Friday, showed non-industry players holding a "net long" position in gold equal to 1009 tonnes of metal by last Tuesday's close – the largest volume of bullish minus bearish bets since the all-time peak of 1021 tonnes hit in Oct. 2009.

As a proportion of all Comex gold futures and options contracts, however, that near-record "speculative long" slipped to 33% – in line with the last 18 months' average.

"Gold continues to benefit from its safe haven status," says one London dealer.

"While gold is still over-bought in US Dollar-terms, it is underpinned by its outperformance versus European currencies and other metals," says a Hong Kong dealer.

Two days after running a lengthy defence of the bail-out from ECB president Jean-Claude Trichet – who called on Eurozone politicians to make a "quantum leap" in managing what he says is "the most difficult situation since the Second World War, perhaps even since the First World War" – Germany's Spiegel newspaper today runs the opposite view from former Bundesbank chief Karl Otto Pöhl.

Leader for 11 years of the ECB's intellectual forerunner and model, Pöhl says last week's €750bn agreement is "an offence against all the rules" of the Eurozone project, making the Euro "a weak currency.

"It is expressly stated in the European Union treaties that no state is responsible for the debts of another. But what we're now doing is exactly that."

German Bunds eased back from last week's crisis highs early Monday, while the gold price in Euros leapt to a new record high at €1014 an ounce.

The gold price in Sterling jumped to a new record high above £869 an ounce after new Con-Lib coalition chancellor George Osborne was quoted calling the previous Labour government "totally irresponsible...[It] has left this country with absolutely terrible public finances."

The Pound fell to a new 14-month low beneath $1.43.

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