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
Stock Market Enters Early Summer Correction Trend Forecast Time Window - 11th May 21
GOLD GDX, HUI Stocks - Will Paradise Turn into a Dystopia? - 11th May 21
Cathy Wood Bubble Bursts as ARK Funds CRASH! Enter into a Severe Bear Market - 11th May 21
Apply This Technique to Stop Rushing into Trades - 10th May 21
Stock Market Entering Early Summer Correction Trend Forecast - 10th May 21
CHIA Getting Started SSD Crypto Mining by Plotting and Farming on Your Hard Drives Guide - 9th May 21
Yaheetech Mesh Best Cheap Computer /. Gaming Chairs on Amazon Review - 9th May 21
Breaking US Trade Embargo with Cuba - Build 7 Computers in 14 Hours Before Ship Sales Challenge - 9th May 21
Dripcoin Applies New Technology That Provides Faster Order Execution - 9th May 21
Capital Gains Tax Hike News: Was It REALLY to Blame for Sell-off? - 7th May 21
Stock Market Transportation Index Continues To Grind Higher - 7th May 21
SPX Stock Market Correction Arriving or Not? - 7th May 21
How to Invest in an Online Casino? - 7th May 21
Gold & Silver Begin New Advancing Cycle Phase - 6th May 21
Vaccine Economic Boom and Bust - 6th May 21
USDX, Gold Miners: The Lion and the Jackals - 6th May 21
What If You Turn Off Your PC During Windows Update? Stuck on Automatic Repair Nightmare! - 6th May 21
4 Insurance Policies You Should Consider Buying - 6th May 21
Fed Taper Smoke and Mirrors - 5th May 21
Global Economic Recovery 2021 and the Dark Legacies of Smoot-Hawley - 5th May 21
Utility Stocks Continue To Rally – Sending A Warning Signal Yet? - 5th May 21
ROIMAX Trading Platform Review - 5th May 21
Gas and Electricity Price Trends so far in 2021 for the United Kingdom - 5th May 21
Crypto Bubble Mania Free Money GPU Mining With NiceHash Continues... - 4th May 21
Stock Market SPX Short-term Correction - 4th May 21
Gold & Silver Wait Their Turn to Ride the Inflationary Wave - 4th May 21
Gold Can’t Wait to Fall – Even Without USDX’s Help - 4th May 21
Stock Market Investor Psychology: Here are 2 Rare Traits Now on Display - 4th May 21
Sheffield Peoples Referendum May 6th Local Elections 2021 - Vote for Committee Decision's or Dictatorship - 4th May 21
AlphaLive Brings Out Latest Trading App for Android - 4th May 21
India Covid-19 Apocalypse Heralds Catastrophe for Pakistan & Bangladesh, Covid in Italy August 2019! - 3rd May 21
Why Ryzen PBO Overclock is Better than ALL Core Under Volting - 5950x, 5900x, 5800x, 5600x Despite Benchmarks - 3rd May 21
MMT: Medieval Monetary Theory - 3rd May 21
Magical Flowering Budgies Bird of Paradise Indoor Grape Vine Flying Fun in VR 3D 180 UK - 3rd May 21
Last Chance to GET FREE Money Crypto Mining with Your Desktop PC - 2nd May 21
Will Powell Lull Gold Bulls to Sweet Sleep? - 2nd May 21
Stock Market Enough Consolidation Already! - 2nd May 21
Inflation or Deflation? (Not a silly question…) - 2nd May 21
What Are The Requirements For Applying For A Payday Loan Online? - 2nd May 21
How to Invest in HIGH RISK Tech Stocks for 2021 and Beyond - Part1 - 1st May 21
Are Technicals Pointing to New Gold Price Rally? - 1st May 21
US Dollar Index: Subtle Changes, Remarkable Outcomes - 1st May 21
Stock Market Correction Time Window - 30th Apr 21
Stock Market "Fastest Jump Since 2007": How Leveraged Investors are Courting "Doom" - 30th Apr 21
Three Reasons Why Waiting for "Cheaper Silver" Doesn't Make Cents - 30th Apr 21
Want To Invest In US Real Estate Market But Don’t Have The Down Payment? - 30th Apr 21
King Zuckerberg Tech Companies to Set up their own Governments! - 29th Apr 21
Silver Price Enters Acceleration Phase - 29th Apr 21
Financial Stocks Sector Appears Ready To Run Higher - 29th Apr 21
Stock Market Leverage Reaches New All-Time Highs As The Excess Phase Rally Continues - 29th Apr 21
Get Ready for the Fourth U.S. Central Bank - 29th Apr 21
Gold Mining Stock: Were Upswings Just an Exhausting Sprint? - 29th Apr 21
AI Tech Stocks Lead the Bull Market Charge - 28th Apr 21
AMD Ryzen Overclocking Guide - 5900x, 5950x, 5600x PPT, TDC, EDC, How to Best Settings Beyond PBO - 28th Apr 21
Stocks Bear Market / Crash Indicator - 28th Apr 21
No Upsetting the Apple Cart in Stocks or Gold - 28th Apr 21
Is The Covaids Insanity Actually Getting Worse? - 28th Apr 21
Dogecoin to the Moon! The Signs are Everywhere, but few will Heed them - 28th Apr 21
SPX Indicators Flashing Stock Market Caution - 28th Apr 21
Gold Prices – Don’t Get Too Excited - 28th Apr 21
6 Challenges Contract Managers Face When Handling Contractual Agreements - 28th Apr 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Gold Nears 7th Weekly Gain in Eight as Stock Markets Fall; Commodities Rise on Turkey-US Tensions, New Russian Wheat Tariff

Commodities / Gold & Silver Oct 12, 2007 - 11:21 AM GMT

By: Adrian_Ash

Commodities THE SPOT GOLD MARKET held in a one-dollar range either side of last night's US close on Friday morning, heading for the seventh weekly gain in eight above $747.50 per ounce.

European stock markets meantime slipped 0.8% by lunchtime in London , following Asia lower after Wall Street dropped 0.5% on Thursday.

Nasdaq tech-stock futures pointed lower ahead of Friday's Wall Street open. The index had risen by more than 8% in the last month, but fell sharply yesterday as – the Chinese search engine – dropped one-tenth of its market value on an earnings downgrade by analysts at J.P.Morgan.

"The current rally in Gold Prices is supported by surprisingly strong physical demand," says Wolfgang Wrzesniok-Rossbach in the latest Metals Weekly from Heraeus, the German refining group, "and also by strong demand from investors as well as speculators.

"Both groups focus not so much on the fundamental side, but more on the very strong oil price and on the weak Dollar."

The Dollar held steady at $1.4170 per Euro – and US government bond prices continued to slip – after President Bush, Treasury-Secretary Paulson and presidential candidate Hillary Clinton all said yesterday that they support a "strong Dollar" policy.

The Euro also failed to rise on stronger-than-forecast Eurozone industrial production – up 4.3% in August from a year earlier. The British Pound slid to a two-week low beneath $2.0250 after a survey in today's Financial Times said house-price growth has slumped by one-half since April.

That move kept the Gold Price in British Pounds around £369 per ounce, more than 1.6% above last week's close. For European investors wanting to Buy Gold Today , the price traded one Euro below yesterday's 17-month high of €529.50.

Gold's two-month surge is also supported on the supply side, notes Wrzesniok-Rossbach at Heraeus. He points both to the decline in South African mining output – down 5.2% in Q3 compared with summer 2006 according to new data out Thursday – plus the "not-so-small likelihood" that central-bank gold sales can only fall from their near-record of the last 12 months.

Signatories to the Central Bank Gold Agreement sold more than 475 tonnes of gold in the year ending 26th Sept., said the Bank for International Settlements on Wednesday. The agreed ceiling was 500 tonnes.

"This number was considerably higher than last year," says Wrzesniok-Rossbach, "when signatories disposed of only 396 tonnes." And now the German Bundesbank says it will sell just 8 tonnes in the new year of the CBGA, enough only to mint commemorative coins.

Yes, the Bundesbank can offer the rest of its 120-tonne allocation to the other 14 members of the Agreement. But the largest central bank in the Eurozone, famed for its anti-inflationary policies in the late 1970s and early '80s, says it will continue to keep hold of 3,414 tonnes of gold bullion.

That hoard is second-only to the US Federal Reserve's reported stock of 8,274 tonnes.

"If the US keeps interest rates at accommodative levels, thereby supporting global liquidity, inflation-related pressures on gold will continue," said Hussein Allidina and Jeremy Friesen for Morgan Stanley in New York yesterday.

Any further interest-rate cuts by the Federal Reserve "could well remove the final obstacle to Gold Prices mounting to $800 an ounce by the end of the year," reckons Gary Mead at Virtual Metals in London.

In the broader commodities market, meanwhile, crude oil rose for the fourth session running as Turkey expelled the US ambassador to Ankara and Prime Minister Erdogan told reporters that Turkish troops may pursue Kurdish separatists into Iraq .

"The northern region of Kurdistan holds some of Iraq 's largest oil fields," says Bloomberg.

The prices of zinc, aluminum, lead, tin and nickel also rose at the London Metal Exchange this morning, but copper was unchanged after new data showed stockpiles in Shanghai warehouses rising 23% last week compared with a week earlier.

Chinese copper imports have risen by 41% so far this year from the first 9 months of 2006.

Wheat futures meantime rose for the third day running, after Russia 's official state newspaper, Rossiyskaya Gazeta , said the government has imposed a 10% tax on all wheat exports. Barley exports will be taxed at €70 per ton, or 30% of the declared customs value.

The new Russian tariffs will run until the end of April.

Palm oil also rose in Asian trade after soybeans – a substitute in vegetable oil production – surged in anticipation of a crop forecast due from the US Dept. of Agriculture at 12:30 GMT .

By Adrian Ash

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 , 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 - 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