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 Market "Lacking Momentum" as Traders "More Interest in Olympics"

Commodities / Gold and Silver 2012 Aug 08, 2012 - 06:54 AM GMT

By: Ben_Traynor

Commodities

Best Financial Markets Analysis ArticleTHE U.S. DOLLAR gold price hovered just below $1610 an ounce for most of Wednesday morning's trading in London – in line with last Friday's close – while stocks and commodities ticked lower and US Treasuries gained.

The silver price dipped below $28 an ounce, although like gold, silver remains slightly above where it ended last week.


"The gold price has been range trading for the past couple of months," says Commerzbank senior technical analyst Axel Rudolph, noting that the upper end of the range "is seen at the June $1641 peak".

"There is a lack of momentum in the market," adds one dealer in Hong Kong.

"Prices are unlikely to break above $1620 but falling below $1570 is also difficult. Many traders are more interested in watching the Olympics than trading."

In India, which is experiencing a drier than usual monsoon, physical gold dealers continue to report subdued demand in what is traditionally the world's biggest gold buying nation.

"People will prefer to stay in cash than buy gold due to the drought," says Haresh Acharya, head of bullion desk at Parker Bullion in Ahmedabad.

"The market is slow, but there could be buying later this month," adds Ashok Jain at Mumbai gold wholesaler Chenaji Narsinghji.

"Gold is still looking promising in the second half [of 2012]," reckons Shanghai CIFCO Futures analyst Li Ning.

"The peak physical consumption season [is] on the horizon and more quantitative easing from the US Fed [is] still on the cards."

Here in London, the Bank of England published its quarterly Inflation Report Wednesday, cutting its forecast for UK economic growth to near zero for 2012.

"The underlying picture is that output has been at best broadly flat over the past two years, and has continually disappointed expectations of a recovery," said Bank governor Mervyn King.

"Many of the conditions necessary for a recovery are [however] in place, and the [Monetary Policy Committee] will continue to do all it can to bring about that recovery."

"Central banks," King added during his press conference, "have done a massive amount. This has been an extraordinary period of monetary stimulus never seen before and we've still got the foot to the floor."

"We expect the main message from the Inflation Report to be that more easing is coming," said Nomura economist Philip Rush, speaking ahead of the report's publication.

"This message would be communicated by forecasting inflation to be more likely than not to be well below target through the medium term."

In the event, King said that "inflation is likely to fall further from its current level to be around or a little below target for much of the forecast period".

The Sterling gold price fell slightly following the publication of the report, dropping below £1030 per ounce as the Pound rallied against the Dollar, though gold in Sterling remained above where it closed last week.

London-headquartered bank Standard Chartered meantime may need to pay up to $700 million as a result of allegations made by the New York State Department of Financial Services that it breached regulations by disguising transactions with Iran, newswire Bloomberg reports.

Standard Chartered has rejected the allegations and says it intends to contest them.

"Political intervention may be needed over this," says one senior City of London figure quoted by the Financial Times.

"This is an attack," said another.

"If we don't stand up to it, it could be catastrophic for London's financial standing. There has to be some stage where [the British government] says something in defense of the banks."

By Ben Traynor
BullionVault.com

Gold price chart, no delay   |   Buy gold online at live prices

Editor of Gold News, the analysis and investment research site from world-leading gold ownership service BullionVault, Ben Traynor was formerly editor of the Fleet Street Letter, the UK's longest-running investment letter. A Cambridge economics graduate, he is a professional writer and editor with a specialist interest in monetary economics.(c) BullionVault 2012

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.


© 2005-2022 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