Most Popular
1. Banking Crisis is Stocks Bull Market Buying Opportunity - Nadeem_Walayat
2.The Crypto Signal for the Precious Metals Market - P_Radomski_CFA
3. One Possible Outcome to a New World Order - Raymond_Matison
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
5. Apple AAPL Stock Trend and Earnings Analysis - Nadeem_Walayat
6.AI, Stocks, and Gold Stocks – Connected After All - P_Radomski_CFA
7.Stock Market CHEAT SHEET - - Nadeem_Walayat
8.US Debt Ceiling Crisis Smoke and Mirrors Circus - Nadeem_Walayat
9.Silver Price May Explode - Avi_Gilburt
10.More US Banks Could Collapse -- A Lot More- EWI
Last 7 days
Stock Market Volatility (VIX) - 25th Mar 24
Stock Market Investor Sentiment - 25th Mar 24
The Federal Reserve Didn't Do Anything But It Had Plenty to Say - 25th Mar 24
Stock Market Breadth - 24th Mar 24
Stock Market Margin Debt Indicator - 24th Mar 24
It’s Easy to Scream Stocks Bubble! - 24th Mar 24
Stocks: What to Make of All This Insider Selling- 24th Mar 24
Money Supply Continues To Fall, Economy Worsens – Investors Don’t Care - 24th Mar 24
Get an Edge in the Crypto Market with Order Flow - 24th Mar 24
US Presidential Election Cycle and Recessions - 18th Mar 24
US Recession Already Happened in 2022! - 18th Mar 24
AI can now remember everything you say - 18th Mar 24
Bitcoin Crypto Mania 2024 - MicroStrategy MSTR Blow off Top! - 14th Mar 24
Bitcoin Gravy Train Trend Forecast 2024 - 11th Mar 24
Gold and the Long-Term Inflation Cycle - 11th Mar 24
Fed’s Next Intertest Rate Move might not align with popular consensus - 11th Mar 24
Two Reasons The Fed Manipulates Interest Rates - 11th Mar 24
US Dollar Trend 2024 - 9th Mar 2024
The Bond Trade and Interest Rates - 9th Mar 2024
Investors Don’t Believe the Gold Rally, Still Prefer General Stocks - 9th Mar 2024
Paper Gold Vs. Real Gold: It's Important to Know the Difference - 9th Mar 2024
Stocks: What This "Record Extreme" Indicator May Be Signaling - 9th Mar 2024
My 3 Favorite Trade Setups - Elliott Wave Course - 9th Mar 2024
Bitcoin Crypto Bubble Mania! - 4th Mar 2024
US Interest Rates - When WIll the Fed Pivot - 1st Mar 2024
S&P Stock Market Real Earnings Yield - 29th Feb 2024
US Unemployment is a Fake Statistic - 29th Feb 2024
U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - 29th Feb 2024
What a Breakdown in Silver Mining Stocks! What an Opportunity! - 29th Feb 2024
Why AI will Soon become SA - Synthetic Intelligence - The Machine Learning Megatrend - 29th Feb 2024
Keep Calm and Carry on Buying Quantum AI Tech Stocks - 19th Feb 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Gold on Target to Achieve $1000 Early 2008

Commodities / Gold & Silver Jan 07, 2008 - 09:32 AM GMT

By: Mike_Clark

Commodities Gold was down $2.80 to $863 per ounce in New York on Friday and silver was down 5 cents to $15.30 per ounce. Gold is marginally down in Asia and Europe and the London AM Fix was at $857.50. Gold started the first week of the New Year very strongly and was up some 3% in last weeks' shortened first week of trading and thus some profit taking and consolidation were to be expected.


At the London AM Fix gold was trading at £435.04 GBP and €580.57 EUR. Gold remains near record all time non inflation adjusted highs in both currencies. Gold is up seven years in a row against the Japanese yen and Chinese yuan (fixed as it is to the dollar). Gold has risen six out of the last seven years against the Australian dollar, Swiss franc, British pound and Indian rupee. It is very significant that gold has climbed in each of the past three years against all the major currencies of the world. This shows that gold's strength is not solely a function of US dollar weakness and gold is not rallying because it is cheaper for holders of non US dollar currencies. Internationally, fiat currencies are now being created at unprecedented rates with unprecedented credit creation and money supply growth of 10% plus in all major economies.

The dollar's strength and oil's weakness has slowed gold's gallop this morning but gold's trend remains strongly up and as ever it is important that investors continue to "make the trend their friend". While their may be profit taking and consolidation gold may continue to surprise to the upside and $900 is being cited as a possible price target prior to any meaningful correction. Support is at the 50-day moving average at $815.00 and the recent low price in the $775 to $785 range.

Volatility looks set to increase in the gold market but the fundamentals remain strong with the poor jobs report further showing a slowing US economy which nevertheless faces considerable inflationary pressures. A serious bout of stagflation does not bode well for the US economy or the faltering dollar.

Price Targets
$1,000 per ounce gold looks like being achieved earlier in 2008 then many had expected and $900 is a good target in the coming weeks. The inflation adjusted high of some $2,200 per ounce looks increasingly like it will be achieved in the next 3 to 4 years.

Weekly Survey
Gold may rise to a record on speculation a weakening dollar and surging energy and commodity prices will boost the appeal of the metal as a hedge against inflation. Sixteen of 25 traders, investors and analysts surveyed by Bloomberg from Mumbai to New York on Jan. 3 and Jan. 4 advised buying gold, which rose 2.7 percent last week to $865.70 an ounce in New York. Six said to sell, and three were neutral. Spot gold and crude-oil futures reached records last week and gold was up 31 percent in 2007, while the dollar dropped 9.5 percent against the euro. The majority of analysts surveyed Dec. 27 and Dec. 28 anticipated last week's gain. The survey has accurately forecast prices in 119 of 192 weeks, or 62 percent. This week's survey results were - Bullish: 16 Bearish: 6 Neutral:3

ETFs
The Wall Street Journal reported that investor interest in the precious metals continues to grow, with the two major ETF's for gold and silver adding approximately 60k toz and 3 million toz respectively. The gold ETF now has more gold than the People's Bank of China.

This Week
The very poor unemployment data on Friday increased the likelihood of a recession in the U.S. and some Asian markets were down on these concerns. They have increased the odds of a 0.50% rate cut at the Fed's policy meeting at the end of January. This will likely put the dollar under even further pressure. The US data schedule is relatively light in the coming days but a host of Fed speakers are scheduled over the course of the week, including Bernanke, and markets will be keeping a close eye on references to the policy outlook.

Silver
Silver is trading at $15.30/15.31 at 1130 GMT.

PGMs
Platinum was trading at $1528/1533 as per above (1130 GMT).  
Palladium was trading at $365/370 an ounce (1130 GMT).

Oil
Oil remains at elevated levels above $95 per barrel and NYMEX light sweet crude oil (FEB08) was trading at $97.46 a barrel creating gold buying interest from investors looking to hedge against surging inflation.

Gold Investments
63 Fitzwilliam Square
Dublin 2
Ireland
Ph +353 1 6325010
Fax  +353 1 6619664
Email info@gold.ie
Web www.gold.ie
Gold Investments
Tower 42, Level 7
25 Old Broad Street
London
EC2N 1HN
United Kingdom
Ph +44 (0) 207 0604653
Fax +44 (0) 207 8770708
Email info@goldinvestments.org
Web www.goldinvestments.org

Mission Statement
Gold and Silver Investments Limited hope to inform our clientele of important financial and economic developments and thus help our clientele and prospective clientele understand our rapidly changing global economy and the implications for their livelihoods and wealth.
We focus on the medium and long term global macroeconomic trends and how they pertain to the precious metal markets and our clienteles savings, investments and livelihoods. We emphasise prudence, safety and security as they are of paramount importance in the preservation of wealth.

Financial Regulation: Gold & Silver Investments Limited trading as Gold Investments is regulated by the Financial Regulator as a multi-agency intermediary. Our Financial Regulator Reference Number is 39656. Gold Investments is registered in the Companies Registration Office under Company number 377252 . Registered for VAT under number 6397252A . Codes of Conduct are imposed by the Financial Regulator and can be accessed at www.financialregulator.ie or from the Financial Regulator at PO Box 9138, College Green, Dublin 2, Ireland. Property, Commodities and Precious Metals are not regulated by the Financial Regulator

Disclaimer: The information in this document has been obtained from sources, which we believe to be reliable. We cannot guarantee its accuracy or completeness. It does not constitute a solicitation for the purchase or sale of any investment. Any person acting on the information contained in this document does so at their own risk. Recommendations in this document may not be suitable for all investors. Individual circumstances should be considered before a decision to invest is taken. Investors should note the following: The value of investments may fall or rise against investors' interests. Income levels from investments may fluctuate. Changes in exchange rates may have an adverse effect on the value of, or income from, investments denominated in foreign currencies. Past experience is not necessarily a guide to future performance.

All the opinions expressed herein are solely those of Gold & Silver Investments Limited and not those of the Perth Mint. They do not reflect the views of the Perth Mint and the Perth Mint accepts no legal liability or responsibility for any claims made or opinions expressed herein.

Fair Use Notice: This newsletter contains copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available in our efforts to advance understanding of issues of financial and economic significance. At all times we credit and attribute the copywrite owner and publication.
We believe this constitutes a 'fair use' of any such copyrighted material as provided for in Copyright Law. The material on this site is distributed without profit to those who have expressed a prior interest in receiving the included information for economic research purposes. If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission from the copyright owner.

Gold Investments Archive

© 2005-2022 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