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

Shanghai Gold Trading Jumps as US Gold Derivatives Shrink to 3-Year Low

Commodities / Gold and Silver 2013 Jan 07, 2013 - 08:43 AM GMT

By: Adrian_Ash

Commodities

SPOT GOLD PRICES traded in a $10 range Monday morning, rising above last week's finish at $1656 per ounce as European stock markets cut earlier losses.

Silver prices also whipped in a tight range, holding at $30.25 per ounce by lunchtime in London.

Major currencies and government bonds were also little changed, as were broader commodity prices.



Looking at the broader commodities sector, "In 2012 we had a lot of liquidating by hedge funds," says Rob Haworth, senior investment strategist at US Bank Wealth Management in Seattle, "but there's an incentive to reverse that because of growth in emerging markets and especially China.

"It's going to be a good year for commodities."

US data show speculators raising the size of their bullish commodity bets for the time since November last week.

Speculative betting on the gold price, known as the "net long" position of bullish minus bearish bets, rose 3.1% to the equivalent to 609 tonnes of gold by New Year's Eve.

That was below the 2012 average of 633 tonnes however, and well below the 5-year average of 722 tonnes.

Overall, the total number of US gold futures and option contracts shrank last week to a 3-year low, dropping below 600,000 for the first time since September 2009.

With the Chinese New Year now 5 weeks away, in contrast, the Shanghai Gold Exchange today reported a sharp jump in physical gold trading, with volume breaking more than 22 tonnes.

"For 2013, an unreliable economy compels us to prefer supply-constrained commodities, especially the precious metals," says investment bank Morgan Stanley, forecasting average gold prices of $1853 per ounce this year.

"With loose monetary policy and low real interest rates, we believe that gold and silver will likely continue to perform."

But "I think America will sort itself out and the economy will start moving again positively," reckons Rene Hochreiter, CEO of Allan Hochreiter Ltd. in Johannesberg and winner of the London Bullion Market Association's 2012 price forecasting competition.

"As gold declines, as the world economy improves, so platinum, palladium and silver will start to pick up...Platinum may take another year or so before it beats gold and then it's going to stay above gold for the next upward cycle which could be five or six years," Hochreiter is quoted by Bloomberg News.

Gold prices will now average $1600 per ounce in 2013 believes Hochreiter, after averaging $1669 last year. His 2012 forecast was for $1650 per ounce.

The price of platinum has now been below the price of gold since September 2011, the longest such period in at least three decades.

Western policymakers meantime extended by 4 years today the deadline for new banking regulations, aimed at avoiding a repeat of the 2007-2009 credit crunch.

"The new liquidity standard will in no way hinder the ability of the global banking system to finance a global recovery," said Mervyn King, the UK's chief central banker and head of the Basel committee's oversight group.

Requiring banks to meet just 60% of the new liquidity requirements by 2015, with the full deadline pushed back to 2019, "It's a realistic approach," King said.

By Adrian Ash
BullionVault.com

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

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 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.

Adrian Ash 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