Best of the Week
Most Popular
1. Gold vs Cash in a Financial Crisis - Richard_Mills
2.Current Stock Market Rally Similarities To 1999 - Chris_Vermeulen
3.America See You On The Dark Side Of The Moon - Part2 - James_Quinn
4.Stock Market Trend Forecast Outlook for 2020 - Nadeem_Walayat
5.Who Said Stock Market Traders and Investor are Emotional Right Now? - Chris_Vermeulen
6.Gold Upswing and Lessons from Gold Tops - P_Radomski_CFA
7.Economic Tribulation is Coming, and Here is Why - Michael_Pento
8.What to Expect in Our Next Recession/Depression? - Raymond_Matison
9.The Fed Celebrates While Americans Drown in Financial Despair - John_Mauldin
10.Hi-yo Silver Away! - Richard_Mills
Last 7 days
UK Coronavirus Infections and Deaths Projections Trend Forecast Into End April 2020 - 28th Mar 20
DJIA Coronavirus Stock Market Technical Trend Analysis - 27th Mar 20
US and UK Case Fatality Rate Forecast for End April 2020 - 27th Mar 20
US Stock Market Upswing Meets Employment Data - 27th Mar 20
Will the Fed Going Nuclear Help the Economy and Gold? - 27th Mar 20
What you need to know about the impact of inflation - 27th Mar 20
CoronaVirus Herd Immunity, Flattening the Curve and Case Fatality Rate Analysis - 27th Mar 20
NHS Hospitals Before Coronavirus Tsunami Hits (Sheffield), STAY INDOORS FINAL WARNING! - 27th Mar 20
CoronaVirus Curve, Stock Market Crash, and Mortgage Massacre - 27th Mar 20
Finding an Expert Car Accident Lawyer - 27th Mar 20
We Are Facing a Depression, Not a Recession - 26th Mar 20
US Housing Real Estate Market Concern - 26th Mar 20
Covid-19 Pandemic Affecting Bitcoin - 26th Mar 20
Italy Coronavirus Case Fataility Rate and Infections Trend Analysis - 26th Mar 20
Why Is Online Gambling Becoming More Popular? - 26th Mar 20
Dark Pools of Capital Profiting from Coronavirus Stock Markets CRASH! - 26th Mar 20
CoronaVirus Herd Immunity and Flattening the Curve - 25th Mar 20
Coronavirus Lesson #1 for Investors: Beware Predictions of Stock Market Bottoms - 25th Mar 20
CoronaVirus Stock Market Trend Implications - 25th Mar 20
Pandemonium in Precious Metals Market as Fear Gives Way to Command Economy - 25th Mar 20
Pandemics and Gold - 25th Mar 20
UK Coronavirus Hotspots - Cities with Highest Risks of Getting Infected - 25th Mar 20
WARNING US Coronavirus Infections and Deaths Going Ballistic! - 24th Mar 20
Coronavirus Crisis - Weeks Where Decades Happen - 24th Mar 20
Industry Trends: Online Casinos & Online Slots Game Market Analysis - 24th Mar 20
Five Amazingly High-Tech Products Just on the Market that You Should Check Out - 24th Mar 20
UK Coronavirus WARNING - Infections Trend Trajectory Worse than Italy - 24th Mar 20
Rick Rule: 'A Different Phrase for Stocks Bear Market Is Sale' - 24th Mar 20
Stock Market Minor Cycle Bounce - 24th Mar 20
Gold’s century - While stocks dominated headlines, gold quietly performed - 24th Mar 20
Big Tech Is Now On The Offensive Against The Coronavirus - 24th Mar 20
Socialism at Its Finest after Fed’s Bazooka Fails - 24th Mar 20
Dark Pools of Capital Profiting from Coronavirus Stock and Financial Markets CRASH! - 23rd Mar 20
Will Trump’s Free Cash Help the Economy and Gold Market? - 23rd Mar 20
Coronavirus Clarifies Priorities - 23rd Mar 20
Could the Coronavirus Cause the Next ‘Arab Spring’? - 23rd Mar 20
Concerned About The US Real Estate Market? Us Too! - 23rd Mar 20
Gold Stocks Peak Bleak? - 22nd Mar 20
UK Supermarkets Coronavirus Panic Buying, Empty Tesco Shelves, Stock Piling, Hoarding Preppers - 22nd Mar 20
US Coronavirus Infections and Deaths Going Ballistic as Government Start to Ramp Up Testing - 21st Mar 20
Your Investment Portfolio for the Next Decade—Fix It with the “Anti-Stock” - 21st Mar 20
CORONA HOAX: This Is Almost Completely Contrived and Here’s Proof - 21st Mar 20
Gold-Silver Ratio Tops 100; Silver Headed For Sub-$10 - 21st Mar 20
Coronavirus - Don’t Ask, Don’t Test - 21st Mar 20
Napag and Napag Trading Best Petroleum & Crude Oil Company - 21st Mar 20
UK Coronavirus Infections Trend Trajectory Worse than Italy - Government PANICs! Sterling Crashes! - 20th Mar 20
UK Critical Care Nurse Cries at Empty SuperMarket Shelves, Coronavirus Panic Buying Stockpiling - 20th Mar 20
Coronavirus Is Not an Emergency. It’s a War - 20th Mar 20
Why You Should Invest in the $5 Gold Coin - 20th Mar 20
Four Key Stock Market Questions To This Coronavirus Crisis Everyone is Asking - 20th Mar 20
Gold to Silver Ratio’s Breakout – Like a Hot Knife Through Butter - 20th Mar 20
The Coronavirus Contraction - Only Cooperation Can Defeat Impending Global Crisis - 20th Mar 20
Is This What Peak Market Fear Looks Like? - 20th Mar 20
Alessandro De Dorides - Business Consultant - 20th Mar 20
Why a Second Depression is Possible but Not Likely - 20th Mar 20
UK Coronavirus Infections Trend Trajectory Worse than Italy Government PANICs! Sterling Collapses! - 19th Mar 20
Coronavirus Market Crisis - Nowhere to Hide! - 19th Mar 20
Coronavirus Most Likely GDP Economic Outcome for Q1 and Q2 2020 - 19th Mar 20
How COVID-19 Leads to 2008-Style Bank Crisis - 19th Mar 20
Coronavirus Impact on Global Economic GDP Numbers - 19th Mar 20
Bticoin Crash Big Channel Review - 19th Mar 20
Gold is Doing Its Job…Silver Will Come Back as a Safe-Haven Asset - 19th Mar 20
The Chartology of Coronavirus Deflationary Event - 18th Mar 20
Fed Slashes Rates to Zero and Introduces QE in Response to COVID-19. Will Gold Rally Now? - 18th Mar 20
Coronavirus - Nothing to Fear but Fear Itself - 18th Mar 20
The Stocks Bear Market Is Upon Us... Or Not - 18th Mar 20
US and UK Coronavirus Containment Incompetence Resulting Catastrophic Trend Trajectories - 17th Mar 20

Market Oracle FREE Newsletter

Coronavirus-bear-market-2020-analysis

Gold Falls with Stocks & Euro as Yen Hits 15-Year High

Personal_Finance / Pensions & Retirement Aug 24, 2010 - 07:49 AM GMT

By: Adrian_Ash

Personal_Finance

THE SPOT PRICE of wholesale gold dropped to a 7-session low Tuesday lunchtime in London, as world stock markets fell hard in thin trade and the Japanese Yen reached a new 15-year high vs. the Dollar.

"Monday was about as quiet as it gets," says one London bullion dealer in a note.



"Lower gold [today] attracted only light physical interest," a Hong Kong dealer adds.

Versus the Dollar, the British Pound fell to a 1-month low and the Euro hit a 6-week low on the forex market, stemming the gold price drop to £787/oz and €30,920/kg respectively.

Against the Yen, gold fell to a two-week low of ¥3270 per gram. The Euro dropped to its worst level since late 2001 at ¥105.50.

Silver meantime tested last week's lows versus the Dollar, but hit its lowest level against priced in Yen since mid-March.

New data meantime confirmed Germany's 4.1% year-on-year GDP growth for the second quarter, but industrial orders across the 16-nation Eurozone were weaker than analyst forecasts for June.

Ahead of this weekend's Jackson Hole central-banking summit in Wyoming, the Wall Street Journal today reports that the US Fed is moving to expand its program of quantitative easing after a heated debate at this month's policy meeting.

"We sent some garbled message about a weaker economy where we wanted to be more accommodative," the paper quotes Charles Plosser, head of the Philadelphia Fed,

Despite Fed chairman Ben Bernanke preparing to increase the Fed's $2 trillion balance-sheet by buying more bonds, "That was confusing and ran the risk of scaring the markets," says Plosser.

Back in Tuesday's action, "The losses on equity markets in Asia and Europe indicate that risk aversion is rising," notes Standard Bank's commodities team, but "this has not translated into the usual price increase for precious metals.

"Along with base metals, crude oil is bearing the brunt of the pessimistic global economic outlook."

US oil futures contracts today slipped for the fifth session running, dropping to a 6-week low near $72 per barrel, after China reported a 3% year-on-year drop in July's imports of crude.

G7 government bond yields meantime fell again as prices rose, driving the two-year US yield down towards last week's record low despite the looming sale of $37 billion in new two-year debt.

Noting the seasonally thin trading volumes in stocks and precious metals, "It's going to be choppy for the next one-and-a-half weeks," reckons Afshin Nabavi, head of trading at Swiss refinery MKS's Finance division.

Forecasting a strong recovery in physical gold demand, "The Indian festival is coming in and the funds will finish their holidays," says Ronald Leung of Hong Kong's Lee Cheong Gold Dealers, also speaking to Reuters.

But for now, however, it's "imitation gold jewelry that is flying off the shelves in Mumbai," reports Shivom Seth for Mineweb today.

"With gold prices testing multi-week highs and staying strong" against the Rupee, "physical demand has taken a beating, and consumers are preferring to opt for lower carats and for costume jewelry made out of 1 carat gold."

As India celebrates the family festival of Raksha Bandhan today, "We had hoped that the demand for gold jewelry would see a major spike during this time," says one Mumbai retailer, "since brothers and sisters buy gold jewelry as gifts for their siblings."

But "The price of gold has risen by 25% in the past seven months...[and so] youngsters are buying 12-carat or imitation gold jewelry at cheaper prices."

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.


Comments

Shelby Moore
24 Aug 10, 10:27
Take it ALL Out!

Take it all out before the govt seizes it and forces it into Treasuries which lose all their purchasing power in the coming hyper-inflation.

Remember what they did in Argentina, and the US has already announced they plan to do the same.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules