Best of the Week
Most Popular
1. TESLA! Cathy Wood ARK Funds Bubble BURSTS! - 12th May 21
2.Stock Market Entering Early Summer Correction Trend Forecast - 10th May 21
3.GOLD GDX, HUI Stocks - Will Paradise Turn into a Dystopia? - 11th May 21
4.Crypto Bubble Bursts! Nicehash Suspends Coinbase Withdrawals, Bitcoin, Ethereum Bear Market Begins - 16th May 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.Cathy Wood Ark Invest Funds Bubble BURSTS! ARKK, ARKG, Tesla Entering Severe Bear Market - 13th May 21
7.Stock Market - Should You Be In Cash Right Now? - 17th May 21
8.Gold to Benefit from Mounting US Debt Pile - 14th May 21
9.Coronavius Covid-19 in Italy in August 2019! - 13th May 21
10.How to Invest in HIGH RISK Tech Stocks for 2021 and Beyond - Part 2 of 2 - 18th May 21
Last 7 days
Investing in the Tulip Crypto Mania 2021 - 19th Jun 21
Here’s Why Historic US Housing Market Boom Can Continue - 19th Jun 21
Cryptos: What the "Bizarre" World of Non-Fungible Tokens May Be Signaling - 19th Jun 21
Hyperinflationary Expectations: Reflections on Cryptocurrency and the Markets - 19th Jun 21
Gold Prices Investors beat Central Banks and Jewelry, as having the most Impact - 18th Jun 21
Has the Dust Settled After Fed Day? Not Just Yet - 18th Jun 21
Gold Asks: Will the Economic Boom Continue? - 18th Jun 21
STABLE COINS PONZI Crypto SCAM WARNING! Iron Titan CRASH to ZERO! Exit USDT While You Can! - 18th Jun 21
FOMC Surprise Takeaways - 18th Jun 21
Youtube Upload Stuck at 0% QUICK FIXES Solutions Tutorial - 18th Jun 21
AI Stock Buying Levels, Ratings, Valuations Video - 18th Jun 21
AI Stock Buying Levels, Ratings, Valuations and Trend Analysis into Market Correction - 17th Jun 21
Stocks, Gold, Silver Markets Inflation Tipping Point - 17th Jun 21
Letting Yourself Relax with Activities That You Might Not Have Considered - 17th Jun 21
RAMPANT MONEY PRINTING INFLATION BIG PICTURE! - 16th Jun 21
The Federal Reserve and Inflation - 16th Jun 21
Inflation Soars 5%! Will Gold Skyrocket? - 16th Jun 21
Stock Market Sentiment Speaks: Inflation Is For Fools - 16th Jun 21
Four News Events That Could Drive Gold Bullion Demand - 16th Jun 21
5 ways that crypto is changing the face of online casinos - 16th Jun 21
Transitory Inflation Debate - 15th Jun 21
USDX: The Cleanest Shirt Among the Dirty Laundry - 15th Jun 21
Inflation and Stock Market SPX Record Highs. PPI, FOMC Meeting in Focus - 15th Jun 21
Stock Market SPX 4310 Right Around the Corner! - 15th Jun 21
AI Stocks Strength vs Weakness - Why Selling Google or Facebook is a Big Mistake! - 14th Jun 21
The Bitcoin Crime Wave Hits - 14th Jun 21
Gold Time for Consolidation and Lower Volatility - 14th Jun 21
More Banks & Investors Are NOT Believing Fed Propaganda - 14th Jun 21
Market Inflation Bets – Squaring or Not - 14th Jun 21
Is Gold Really an Inflation Hedge? - 14th Jun 21
The FED Holds the Market. How Long Will It Last? - 14th Jun 21
Coinbase vs Binance for Bitcoin, Ethereum Crypto Trading & Investing During Bear Market 2021 - 11th Jun 21
Gold Price $4000 – Insurance, A Hedge, An Investment - 11th Jun 21
What Drives Gold Prices? (Don't Say "the Fed!") - 11th Jun 21
Why You Need to Buy and Hold Gold Now - 11th Jun 21
Big Pharma Is Back! Biotech Skyrockets On Biogen’s New Alzheimer Drug Approval - 11th Jun 21
Top 5 AI Tech Stocks Trend Analysis, Buying Levels, Ratings and Valuations - 10th Jun 21
Gold’s Inflation Utility - 10th Jun 21
The Fuel Of The Future That’s 9 Times More Efficient Than Lithium - 10th Jun 21
Challenges facing the law industry in 2021 - 10th Jun 21
SELL USDT Tether Before Ponzi Scheme Implodes Triggering 90% Bitcoin CRASH in Cryptos Lehman Bros - 9th Jun 21
Stock Market Sentiment Speaks: Prepare For Volatility - 9th Jun 21
Gold Mining Stocks: Which Door Will Investors Choose? - 9th Jun 21
Fed ‘Taper’ Talk Is Back: Will a Tantrum Follow? - 9th Jun 21
Scientists Discover New Renewable Fuel 3 Times More Powerful Than Gasoline - 9th Jun 21
How do I Choose an Online Trading Broker? - 9th Jun 21
Fed’s Tools are Broken - 8th Jun 21
Stock Market Approaching an Intermediate peak! - 8th Jun 21
Could This Household Chemical Become The Superfuel Of The Future? - 8th Jun 21
The Return of Inflation. Can Gold Withstand the Dark Side? - 7th Jun 21
Why "Trouble is Brewing" for the U.S. Housing Market - 7th Jun 21
Stock Market Volatility Crash Course (VIX vs VVIX) – Learn How to Profit From Volatility - 7th Jun 21
Computer Vision Is Like Investing in the Internet in the ‘90s - 7th Jun 21
MAPLINS - Sheffield Down Memory Lane, Before the Shop Closed its Doors for the Last Time - 7th Jun 21
Wire Brush vs Block Paving Driveway Weeds - How Much Work, Nest Way to Kill Weeds? - 7th Jun 21
When Markets Get Scared and Reverse - 7th Jun 21
Is A New Superfuel About To Take Over Energy Markets? - 7th Jun 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

SPDR Gold Trust (GLD) Sees Longest Ever Run of Gold Outflows

Commodities / Gold and Silver 2013 Mar 05, 2013 - 02:18 PM GMT

By: Ben_Traynor

Commodities

U.S. DOLLAR gold prices climbed to $1584 an ounce Tuesday morning, 1.2% above last week's low, as stocks and commodities also edged higher and the Dollar weakened slightly after another Federal Reserve policymaker spoke in favor of ongoing quantitative easing.

Silver hovered just below $29 an ounce this morning, 3.5% up on last week's low, while major government bond prices fell.


"Given the heavy selling we saw in a host of markets last week, [precious metals] could push a little higher over the next few days," says Ed Meir, metals analyst at brokerage INTL FCStone, "but having said that, the technicals in gold and silver remain quite poor and we likely have to do quite a bit more on the upside before some of the technical damage is repaired."

"Between here and the $1635.48 December low, the gold price should continue to encounter resistance," says Commerzbank technical analyst Karen Jones.

"Failure to hold over $1554.83 [however] will trigger losses to the $1522.48 December 2011 low."
Gold in Euros rose back above €39,000 per kilo (hitting €1215 an ounce), slightly up on the week.

Sterling gold prices by contrast were slightly down on last week's close at £1045 an ounce by lunchtime in London.

The volume of holding held to back shares in the SPDR Gold Trust (ticker GLD), the world's biggest gold exchange traded fund, fell for the tenth straight session yesterday, the first time this has happened since the GLD was launched in 2004.

This makes the current run of outflows twice as long as the previous highest, with the GLD seeing its bullion holdings fall for five straight sessions on two previous occasions – in October 2010 and May 2011.

On the New York Comex meantime speculative futures traders last month built up their biggest gold short position since 1999.

Self-directed bullion investors meantime grew less bullish towards gold last month, according to the Gold Investor Index from BullionVault, which fell to a five-month low at 54.4

In the US, asset purchases made by the Federal Reserve as part of its ongoing quantitative easing program "have been reasonably efficacious in stimulating spending" said Fed vice chair Janet Yellen Monday.

Yellen added that she does not currently see any potential costs to QE "that would cause me to advocate a curtailment of our purchase program" and that it should continue until the US labor market improves and that the Federal Open Market Committee should not unwind QE until after interest rates start to rise from their current historic lows.

"The committee's intention is to leave that accommodation in place until well into the recovery," she said.

Last Week, Fed chairman Ben Bernanke said there are "clear benefits" to QE when he testified to Congress.

Since the start of February the US Dollar Index, which measures the Dollar's strength against a basket of other currencies, has risen more than 2.5% to six-month highs above 82.

"A strengthening Dollar, an improving macro[economic] outlook and lower inflation expectations would certainly drive gold lower," says a note from Societe Generale.

"Since the generally 'negative' real [inflation-adjusted] interest period since 2007, gold prices have rallied...if history provides guidance, returning to positive 'real rates' would create significant headwinds for gold."

Over in Europe, economic conditions "may...justify in a certain number of cases reviewing deadlines for the correction of excessive [government] deficits," said European Commissioner for Economic and Monetary Affairs Olli Rehn Monday, following the latest meeting of Eurozone finance ministers.

France is set to miss its deficit target of 3% of GDP this year and may do so again next year.

"We do not want to add austerity to recession," said French finance minister Pierre Moscovici.

China "will have to work hard to attain" Beijing's official growth target of 7.5% this year, due to a "growing conflict between downward pressure on economic growth and excess production capacity", outgoing premier Wen Jiabao said Tuesday.

Growth of 7.5% would represent the slowest growth since 1990.

China was the world's second-biggest gold buying nation last year, according to the most recent data from the World Gold Council.

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 2013

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.

Ben Traynor 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