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
Try The “Compounding Capital Gains” Strategy Today - 26th Oct 20
UK Coronavirus Broken Test and Trace System, 5 Days for Covid-19 Results! - 26th Oct 20
How the Coronavirus is Exacerbating Global Inequality, Hunger - 26th Oct 20
The Top Gold Stock for 2021 - 26th Oct 20
Corporate Earnings Season: Here's What Stock Investors Need to Know - 25th Oct 20
�� Halloween 2020 TESCO Supermarkes Shoppers Covid Panic Buying! �� - 25th Oct 20
Three Unstoppable Forces Set to Drive Silver Prices - 25th Oct 20
Car Insurance And Insurance Claims and Options - 25th Oct 20
Best Pressure Washer Review - Karcher K7 Full Control Unboxing - 25th Oct 20
Further Gold Price Pressure as the USDX Is About to Rally - 23rd Oct 20
Nasdaq Retests 11,735 Support - 23rd Oct 20
America’s Political and Financial Institutions Are Broken - 23rd Oct 20
Sayonara U.S.A. - 23rd Oct 20
Economic Contractions Overshadow ASEAN-6 Recovery - 23rd Oct 20
Doji Clusters Show Clear Support Ranges for Stock Market S&P500 Index - 23rd Oct 20
Silver Market - 22nd Oct 20
Goldman Sachs Likes Silver; Trump Wants Even More Stimulus - 22nd Oct 20
Hacking Wall Street to Close the Wealth Gap - 22nd Oct 20
Natural Gas/UNG Stepping GAP Patterns Suggest Pending Upside Breakout - 22nd Oct 20 -
NVIDIA CANCELS RTX 3070 16b RTX 3080 20gb GPU's Due to GDDR6X Memory Supply Issues - 22nd Oct 20
Zafira B Leaking Water Under Car - 22nd Oct 20
The Copper/Gold Ratio Would Change the Macro - 21st Oct 20
Are We Entering Stagflation That Will Boost Gold Price - 21st Oct 20
Crude Oil Price Stalls In Resistance Zone - 21st Oct 20
High-Profile Billionaire Gives Urgent Message to Stock Investors - 21st Oct 20
What's it Like to be a Budgie - Unique in a Cage 4K VR 360 - 21st Oct 20
Auto Trading: A Beginner Guide to Automation in Forex - 21st Oct 20
Gold Price Trend Forecast into 2021, Is Intel Dying?, Can Trump Win 2020? - 20th Oct 20
Gold Asks Where Is The Inflation - 20th Oct 20
Last Chance for this FREE Online Trading Course Worth $129 value - 20th Oct 20
More Short-term Stock Market Weakness Ahead - 20th Oct 20
Dell S3220DGF 32 Inch Curved Gaming Monitor Unboxing and Stand Assembly and Range of Movement - 20th Oct 20
Best Retail POS Software In Australia - 20th Oct 20
From Recession to an Ever-Deeper One - 19th Oct 20
Wales Closes Border With England, Stranded Motorists on Severn Bridge? Covid-19 Police Road Blocks - 19th Oct 20
Commodity Bull Market Cycle Starts with Euro and Dollar Trend Changes - 19th Oct 20
Stock Market Melt-Up Triggered a Short Squeeze In The NASDAQ and a Utilities Breakout - 19th Oct 20
Silver is Like Gold on Steroids - 19th Oct 20
Countdown to Election Mediocrity: Why Gold and Silver Can Protect Your Wealth - 19th Oct 20
“Hypergrowth” Is Spilling Into the Stock Market Like Never Before - 19th Oct 20
Is Oculus Quest 2 Good Upgrade for Samsung Gear VR Users? - 19th Oct 20
Low US Dollar Risky for Gold - 17th Oct 20
US 2020 Election: Are American's ready for Trump 2nd Term Twilight Zone Presidency? - 17th Oct 20
Custom Ryzen 5950x, 5900x, 5800x , RTX 3080, 3070 64gb DDR4 Gaming PC System Build Specs - 17th Oct 20
Gold Jumps above $1,900 Again - 16th Oct 20
US Economic Recovery Is in Need of Some Rescue - 16th Oct 20
Why You Should Focus on Growth Stocks Today - 16th Oct 20
Why Now is BEST Time to Upgrade Your PC System for Years - Ryzen 5000 CPUs, Nvidia RTX 3000 GPU's - 16th Oct 20
Beware of Trump’s October (November?) Election Surprise - 15th Oct 20
Stock Market SPY Retesting Critical Resistance From Fibonacci Price Amplitude Arc - 15th Oct 20
Fed Chairman Begs Congress to Stimulate Beleaguered US Economy - 15th Oct 20
Is Gold Market Going Back Into the 1970s? - 15th Oct 20
Things you Should know before Trade Cryptos - 15th Oct 20
Gold and Silver Price Ready For Another Rally Attempt - 14th Oct 20
Do Low Interest Rates Mean Higher Stocks? Not so Fast… - 14th Oct 20
US Debt Is Going Up but Leaving GDP Behind - 14th Oct 20
Dell S3220DGF 31.5 Inch VA Gaming Monitor Amazon Prime Day Bargain Price! But WIll it Get Delivered? - 14th Oct 20
Karcher K7 Pressure Washer Amazon Prime Day Bargain 51% Discount! - 14th Oct 20
Top Strategies Day Traders Adopt - 14th Oct 20

Market Oracle FREE Newsletter

How to Get Rich Investing in Stocks by Riding the Electron Wave

Gold Flat in "Uneventful" Market and US Recovery Could Be Bearish

Commodities / Gold and Silver 2013 Mar 11, 2013 - 03:51 PM GMT

By: Ben_Traynor

Commodities

U.S. DOLLAR gold prices continued to hover around $1580 an ounce Monday morning, in line with last week's trading, while silver dipped back below $29 an ounce after making slight gains in Asian trading.

Sterling and Euro gold prices were also flat, hovering around £1060 and €1215 an ounce respectively.


"[Last week] was a relatively uneventful week for gold," says a note from precious metals refiner Heraeus, citing a lack of "impulses to influence the metal".

European stock markets ticked lower this morning with the exception of the FTSE, following Friday's announcement by ratings agency Fitch that it has downgraded Italy by one notch to BBB+.

On the currency markets the Euro hovered around $1.30 against the Dollar this morning, after dropping 1.4% Friday following the release of better-than-expected US jobs data and the Italy downgrade news.

Friday's US nonfarm payroll report showed 236,000 jobs added last month, while the unemployment rate fell from 7.9% to 7.7%.

"Gold prices have built in the view that the US recovery is on a good footing," says Societe Generale commodity strategist Jeremy Friesen, "and by the end of the year we should see the Fed exiting the stimulus, which should be bearish for gold."

January's nonfarms figure however was revised lower to 119,000 jobs, below December's 196,000 and the lowest figure for number of jobs added since June last year.

"This is the third time since the recession began that hiring has accelerated, only to fizzle out a few months later," says INTL FCStone metals analyst Ed Meir.

More importantly, while the recent employment gains have been encouraging, overall employment is some three million jobs below the peak reached in January 2008...it is not surprising to see why most economists see the Fed continuing to provide the economy with support."

The so-called speculative net long position of gold futures and options traders, calculated as the difference between bullish and bearish contracts held by hedge funds and other professional money managers, fell to its lowest reported level since December 2008 in the week ended last Tuesday, according to weekly data published Friday by the Commodity Futures Trading Commission.

Gold exchange traded funds meantime continued to see net outflows last week. The world's largest, the SPDR Gold Trust (ticker: GLD), saw its holdings drop to their lowest level since October 2011 Friday, at 1239.7 tonnes.

"ETFs remained net sellers, although their aversion to the metal does seem to be easing," says a note from Standard Bank.

"The week saw 21.9 tonnes liquidated from the holdings [of all ETFs tracked by Standard Bank], significantly lower than the previous week's 56.7 tonne loss (which was a 12-month record). Total holdings are now at 2567.7 tonnes, down 152.7 tonnes since the beginning of the year."

"[ETF] holdings remain vulnerable given prices are trading sub $1600," adds Suki Cooper, precious metals analyst at Barclays.

"[That said,] macro uncertainty continues to linger, and gold's safe haven appeal could return, particularly given the debt ceiling debate scheduled for May, but should investor interest continue to dwindle, physical demand and official sector appetite are likely set the floor for prices."

Over in China, the world's number two gold consumer, industrial production and retail sales both grew at a slower pace than analysts forecast in February, according to official data published over the weekend.

"Fixed asset investments continued to be the key driving factor[ for China's growth]," says a note from Credit Suisse.

"This is consistent with our view of a narrow-based recovery. So far, there is no evidence that the growth momentum that has been primarily driven by local government investment projects has spilled over to other sectors...without a broader-based improvement of activities, a strong rebound of growth momentum will likely still be missing."

Producer prices in China fell by more than expected, while by contrast consumer price inflation ticked higher to 3.2%, up from 2.0% a month earlier.

Chinese gold production meantime rose by nearly 25% to just over 30 tonnes in January, according to figures published by the China Gold Association. Data published last week show China's net gold imports from Hong Kong that month fell to a three-month low below 30 tonnes.

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

6 Critical Money Making Rules