Best of the Week
Most Popular
1. Stock Markets and the History Chart of the End of the World (With Presidential Cycles) - 28th Aug 20
2.Google, Apple, Amazon, Facebook... AI Tech Stocks Buying Levels and Valuations Q3 2020 - 31st Aug 20
3.The Inflation Mega-trend is Going Hyper! - 11th Sep 20
4.Is this the End of Capitalism? - 13th Sep 20
5.What's Driving Gold, Silver and What's Next? - 3rd Sep 20
6.QE4EVER! - 9th Sep 20
7.Gold Price Trend Forecast Analysis - Part1 - 7th Sep 20
8.The Fed May “Cause” The Next Stock Market Crash - 3rd Sep 20
9.Bitcoin Price Crash - You Will be Suprised What Happens Next - 7th Sep 20
10.NVIDIA Stock Price Soars on RTX 3000 Cornering the GPU Market for next 2 years! - 3rd Sep 20
Last 7 days
Gold & the USDX: Correlations - 2nd Dec 20
How An Ancient Medicine Is Taking On The $16 Trillion Pharmaceutical Industry - 2nd Dec 20
Amazon Black Friday vs Prime Day vs Cyber Monday, Which are Real or Fake Sales - 1st Dec 20
The No.1 Biotech Stock for 2021 - 1st Dec 20
Stocks Bears Last Chance Before Market Rally To SPX 4200 In 2021 - 1st Dec 20
Globalists Poised for a “Great Reset” – Any Role for Gold? - 1st Dec 20
How to Get FREE REAL Christmas Tree 2020! Easy DIY Money Saving - 1st Dec 20
The Truth About “6G” - 30th Nov 20
Ancient Aztec Secret Could Lead To A $6.9 Billion Biotech Breakthrough - 30th Nov 20
AMD Ryzen Zen 3 NO UK MSRP Stock - 5600x, 5800x, 5900x 5950x Selling at DOUBLE FAKE MSRP Prices - 29th Nov 20
Stock Market Short-term Decision Time - 29th Nov 20
Look at These 2 Big Warning Signs for the U.S. Economy - 29th Nov 20
Dow Stock Market Short-term and Long-term Trend Analysis - 28th Nov 20
How To Spot The End Of An Excess Market Trend Phase – Part II - 28th Nov 20
BLOCKCHAIN INVESTMENT PRIMER - 28th Nov 20
The Gold Stocks Correction is Maturing - 28th Nov 20
Biden and Yellen Pushed Gold Price Down to $1,800 - 28th Nov 20
Sheffield Christmas Lights 2020 - Peace Gardens vs 2019 and 2018 - 28th Nov 20
MUST WATCH Before You Waste Money on Buying A New PC Computer System - 27th Nov 20
Gold: Insurance for Prudent Investors, Precious Metals Reduce Risk & Preserve Wealth - 27th Nov 20
How To Spot The End Of An Excess Market Trend Phase - 27th Nov 20
Snow Falling Effect Christmas Lights Outdoor Projector Amazon Review - 27th Nov 20
4 Reasons Why You Shouldn't Put off Your Roof Repairs - 27th Nov 20
Further Clues Reveal Gold’s Weakness - 26th Nov 20
Fun Things to Do this Christmas - 26th Nov 20
Industries that Require Secure Messaging Apps - 26th Nov 20
Dow Stock Market Trend Analysis - 25th Nov 20
Amazon Black Friday Dell 32 Inch S3220DGF VA Curved Screen Gaming Monitor Bargain Deal! - 25th Nov 20
Biden the Silver Bull - 25th Nov 20
Inflation Warning to the Fed: Be Careful What You Wish For - 25th Nov 20
Financial Stocks Sector ETF Shows Unique Island Setup – What Next? - 25th Nov 20
Herd Immunity or Herd Insolvency: Which Will Affect Gold More? - 25th Nov 20
Stock Market SEASONAL TREND and ELECTION CYCLE - 24th Nov 20
Amazon Black Friday - Karcher K7 FC Pressure Washer Assembly and 1st Use - Is it Any Good? - 24th Nov 20
I Dislike Shallow People And Shallow Market Pullbacks - 24th Nov 20
Small Traders vs. Large Traders vs. Commercials: Who Is Right Most Often? - 24th Nov 20
10 Reasons You Should Trade With a Regulated Broker In UK - 24th Nov 20
Stock Market Elliott Wave Analysis - 23rd Nov 20
Evolution of the Fed - 23rd Nov 20
Gold and Silver Now and Then - A Comparison - 23rd Nov 20
Nasdaq NQ Has Stalled Above a 1.382 Fibonacci Expansion Range Three Times - 23rd Nov 20
Learn How To Trade Forex Successfully - 23rd Nov 20
Market 2020 vs 2016 and 2012 - 22nd Nov 20
Gold & Silver - Adapting Dynamic Learning Shows Possible Upside Price Rally - 22nd Nov 20
Stock Market Short-term Correction - 22nd Nov 20
Stock Market SPY/SPX Island Setups Warn Of A Potential Reversal In This Uptrend - 21st Nov 20
Why Budgies Make Great Pets for Kids - 21st Nov 20
How To Find The Best Dry Dog Food For Your Furry Best Friend?  - 21st Nov 20
The Key to a Successful LGBT Relationship is Matching by Preferences - 21st Nov 20
Stock Market Dow Long-term Trend Analysis - 20th Nov 20
Margin: How Stock Market Investors Are "Reaching for the Stars" - 20th Nov 20
World’s Largest Free-Trade Pact Inspiration for Global Economic Recovery - 20th Nov 20
Dating Sites Break all the Stereotypes About Distance - 20th Nov 20

Market Oracle FREE Newsletter

FIRST ACCESS to Nadeem Walayat’s Analysis and Trend Forecasts

Gold Slips on Third Day of "Healthy Correction" as US Jobless Claims Rise

Commodities / Gold & Silver Oct 04, 2007 - 09:15 AM GMT

By: Adrian_Ash

Commodities

SPOT GOLD PRICES slipped yet again in London on Thursday morning, recording the third falling AM Fix on the run at $726.75 per ounce.

On the currency markets, both the British Pound and the Euro gained a cent from yesterday's one-week lows against the US Dollar, after the Bank of England and European Central Bank both kept their interest rates on hold.


Crude oil dipped below $80 per barrel, while Europe's 300 largest equities ticked 0.2% higher on average. Wall Street stock futures pointed higher, despite last week's US unemployment data showing a greater rise in jobless claims than forecast.

Tomorrow brings the much-anticipated Sept. employment report.

"The demand side [for gold] is currently highly diversified," says Wolfgang Wrzesniok-Rossbach in the latest Precious Metals Weekly from Heraeus, the German refining group, "and this provides a strong foundation for the recent strength.

"Speculators are back in the Gold Market and, apart from last week, there were continuously reports about good physical demand from the jewelry industry...Demand for gold in industrial applications remains strong as well.

"The overall positive situation for gold certainly has therefore not changed because of the latest set-back and yesterday's move can be seen just as a healthy correction."

Gold demand rose today in India – the world's hungriest market for physical bullion –reports Reuters, after last week's new 27-year highs deterred private consumers.

"There is a pick-up in demand after a silent period of almost two to three weeks," said one private-bank dealer to the newswire. "People are seeing Gold Prices lower," added another dealer in Indore. "They're looking to pay around 9,200 rupees per 10 grams" – equivalent to $728 per ounce.

"If we see that level, there will be good buying despite Shradh," he went on, referring to the lull in Gold Buying usually seen during this two-week break in post-harvest festivals on the Hindu calendar.

"The first half of the year has been very good, but sales are not as buoyant now," says Rajan Venkatesh at Bank of Nova Scotia. Imports during full-year 2007 may come in "closer to 800-850 tonnes," he believes – a record total.

In London, the Lxyor GBS exchange-traded gold fund issued new shares this morning, growing its total issuance by 2.6%. The ongoing Commodities Week conference was told yesterday by "pension fund managers and their bankers investment in commodities was maturing, with vastly more managers and products on offer than five years ago," according to the Financial Times .

Back in today's Gold Market , the Tocom's most-active gold futures contract slipped 0.6% to the equivalent of $732.50 per ounce in Tokyo overnight. The Nikkei stock index also dropped 0.6%, while the Japanese Yen dropped to a new one-week low of ¥116.60 per Dollar.

Against the Euro, the Yen bounced from the two-month low hit at ¥165 on Wednesday.

"We're seeing fresh Euro strength today [as] the European Central Bank will stress it's maintaining its vigilant stance on inflation," says Neil Jones at Mizuho Capital Markets in London.

"[ECB president] Trichet is also going to want to stress his independence from those politicians calling on him to stop the Euro strengthening further."

But while the ECB fights calls to cut its interest rates – including a new plea Wednesday from BusinessEurope, the Eurozone's business lobby – the European money supply continues to surge, threatening a rise in the cost of living as a loss of purchasing power hits each single currency unit.

August saw the broad M3 measure of Europe's money supply rise 11.6% from a year earlier, only just below of July's record pace. Worldwide, "paper currencies have become confetti," says Dr.Marc Faber in the latest issue of the Gloom, Boom & Doom Report .

"Once people realize that these confetti, deposited in a bank or lent out at low interest, do not adequately protect them from the ongoing monetary depreciation (inflation), they [will] exchange them for all kinds of assets – such as equities, real estate, art, collectibles, commodities and foreign confetti of better quality in order to protect the purchasing power of their savings."

The supply of "confetti, equities and bonds can be increased ad infinitum," Faber goes on, "whereas the supply of precious metals in particular is extremely limited.”

Should the fall in financial security prices tip into deflationary global recession, concludes Faber, gold may also fall at first. "But once the realization sinks in how messy deflation would be for over-indebted countries and households, the Gold Price would likely soar."

By Adrian Ash
BullionVault.com

Gold price chart, no delay | Free Report: 5 Myths of the Gold Market
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 2007

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

6 Critical Money Making Rules