Best of the Week
Most Popular
1. Market Decline Will Lead To Pension Collapse, USD Devaluation, And NWO - Raymond_Matison
2.Uber’s Nightmare Has Just Started - Stephen_McBride
3.Stock Market Crash Black Swan Event Set Up Sept 12th? - Brad_Gudgeon
4.GDow Stock Market Trend Forecast Update - Nadeem_Walayat
5.Gold Significant Correction Has Started - Clive_Maund
6.British Pound GBP vs Brexit Chaos Timeline - Nadeem_Walayat
7.Cameco Crash, Uranium Sector Won’t Catch a break - Richard_Mills
8.Recession 2020 Forecast : The New Risks & New Profits Of A Grand Experiment - Dan_Amerman
9.Gold When Global Insanity Prevails - Michael Ballanger
10.UK General Election Forecast 2019 - Betting Market Odds - Nadeem_Walayat
Last 7 days
UK General Election 2019 BBC Exit Poll Forecast Accuracy Analysis - 12th Dec 19
Technical Analysis Update: Tadawul All Share Index (TASI) - Saudi Arabia ETF (KSA) - 12th Dec 19
Silver Miners Pinpoint the Precious Metals’ Outlook - 12th Dec 19
How Google Has Become the Worlds Biggest Travel Company - 12th Dec 19
UK Election Seats Forecasts - Tories 326, Labour 241, SNP 40, Lib Dems 17 - 12th Dec 19
UK General Election 2019 Final Seats Per Party Forecast - 12th Dec 19
What UK CPI, RPI INFLATION Forecasts for General Election Result 2019 - 11th Dec 19
Gold ETF Holdings Surge… But Do They Actually Hold Gold? - 11th Dec 19
Gold, Silver Reversals, Lower Prices and Our Precious Profits - 11th Dec 19
Opinion Pollsters, YouGov MRP General Election 2019 Result Seats Forecast - 11th Dec 19
UK General Election Tory and Labour Marginal Seats Analysis, Implied Forecast 2019 - 11th Dec 19
UK General Election 2019 - Tory Seats Forecast Based on GDP Growth - 11th Dec 19
YouGov's MRP Poll Final Tory Seats Forecast Revised Down From 359 to 338, Possibly Lower? - 10th Dec 19
What UK Economy (Average Earnings) Predicts for General Election Results 2019 - 10th Dec 19
Labour vs Tory Manifesto's UK General Election Parliamentary Seats Forecast 2019 - 10th Dec 19
Lumber is about to rally and how to play it with this ETF - 10th Dec 19
Social Mood and Leaders Impact on General Election Forecast 2019 - 9th Dec 19
Long-term Potential for Gold Remains Strong! - 9th Dec 19
Stock and Financial Markets Review - 9th Dec 19
Labour / Tory Manifesto's Impact on UK General Election Seats Forecast 2019 - 9th Dec 19
Tory Seats Forecast 2019 General Election Based on UK House Prices Momentum Analysis - 9th Dec 19
Top Tory Marginal Seats at Risk of Loss to Labour and Lib Dems - Election 2019 - 9th Dec 19
UK House Prices Momentum Tory Seats Forecast General Election 2019 - 8th Dec 19
Why Labour is Set to Lose Sheffield Seats at General Election 2019 - 8th Dec 19
Gold and Silver Opportunity Here Is As Good As It Gets - 8th Dec 19
High Yield Bond and Transports Signal Gold Buy Signal - 8th Dec 19
Gold & Silver Stocks Belie CoT Caution - 8th Dec 19
Will Labour Government Spending Bankrupt Britain? UK Debt and Deficits - 7th Dec 19
Lib Dem Fake Tory Election Leaflets - Sheffield Hallam General Election 2019 - 7th Dec 19
You Should Be Buying Gold Stocks Now - 6th Dec 19
The End of Apple Has Begun - 6th Dec 19
How Much Crude Oil Do You Unknowingly Eat? - 6th Dec 19
Labour vs Tory Manifesto Voter Bribes Impact on UK General Election Forecast - 6th Dec 19
Gold Price Forecast – Has the Recovery Finished? - 6th Dec 19
Precious Metals Ratio Charts - 6th Dec 19
Climate Emergency vs Labour Tree Felling Councils Reality - Sheffield General Election 2019 - 6th Dec 19
What Fake UK Unemployment Statistics Predict for General Election Result 2019 - 6th Dec 19
What UK CPI, RPI and REAL INFLATION Predict for General Election Result 2019 - 5th Dec 19
Supply Crunch Coming as Silver Miners Scale Back - 5th Dec 19
Gold Will Not Surpass Its 1980 Peak - 5th Dec 19
UK House Prices Most Accurate Predictor of UK General Elections - 2019 - 5th Dec 19
7 Year Cycles Can Be Powerful And Gold Just Started One - 5th Dec 19
Lib Dems Winning Election Leaflets War Against Labour - Sheffield Hallam 2019 - 5th Dec 19
Do you like to venture out? Test yourself and see what we propose for you - 5th Dec 19
Great Ways To Make Money Over Time - 5th Dec 19
Calculating Your Personal Cost If Stock, Bond and House Prices Return To Average - 4th Dec 19

Market Oracle FREE Newsletter

UK General Election Forecast 2019

Silver Stalls, Gold Gains as CFTC Clarifies London Price Manipulation Fix "Investigation"

Commodities / Gold and Silver 2013 Mar 15, 2013 - 05:24 PM GMT

By: Adrian_Ash

Commodities

GOLD ticked higher but silver prices stalled Friday morning, as a rise in Asian stock markets failed to carry over into European or pre-opening trade in US equities.

The Euro currency rose sharply through $1.30, knocking the gold price in Euros back below €1220 per ounce, virtually unchanged for the week.


Sterling gold prices slipped to £1050, some 2.3% below Tuesday's new 4-month high.

For Dollar investors, Friday morning's London Gold Fix came in at $1593.25 per ounce – more than $6 above yesterday afternoon's level and the highest AM fixing in more than two weeks.

Silver achieved only a 2-day high at its London Fix on Friday, set at $28.91 per ounce.

"Given what we have seen in Libor [the interbank lending rate], we'd be foolish to assume that other benchmarks aren't venues that deserve review,” said Bart Chilton of US regulator the Commodity Futures Trading Commission in an email Thursday, clarifying reports that the London Fix is under investigation by US derivatives regulators.

The CFTC has not begun an investigation, but is "discussing internally” whether the global benchmark for valuing and pricing gold – a snapshot taken at 10:30am and 3pm for gold, and at midday for silver – may be open to "manipulation", along with "energy, swaps...and the whole litany of 'bors," as Chilton said in testimony more than 2 weeks ago.

Back in today's markets, "Gold prices are not being supported by the current confluence of events," says French investment bank and bullion dealer Natixis in its latest weekly comment.

"[The] stronger Dollar predicated upon fiscal retrenchment suggests further downward pressure upon gold prices, while any move by the Fed to scale back QE3 in response to a pick-up in growth...also represents a downside risk for gold prices."

Consumer price inflation in the US rose to 2.0% annually in Feb, new data showed today, with gasoline prices rising at the fastest pace since 2009.

"Inflation is still contained, but there's a fear that it’s starting to rebound," Bloomberg quotes Hideo Shimomura, chief fund investor for $63 billion in assets at Mitsubishi UFJ in Tokyo.

"Treasury yields at 2.0% show people expect improvement in the economy."

Money markets are now pricing in 2.6% inflation, the newswire adds, the highest level of inflation expectations since September.

"The American economic revival, diverging monetary policy expectations and the unfinished Euro area crisis...all point in the same direction," says a note from SocGen analyst Sebastien Galy – "a stronger Dollar."

"Gold's fate will largely ride on what direction US equity markets will take," counters Thursday night's note from INTL FCStone, saying that "only a sizable correction in US equities will likely prompt funds to get back into gold."

Noting that silver investment has risen while ETF trust fund holdings in gold fell, “We find this divergence surprising given that silver investment demand tends to be closely linked to sentiment towards gold," says Anne-Laure Tremblay, precious metals strategist at BNP Paribas.

Trimming her silver price forecast from a 2013 average of more than $34 per ounce to $31.35, "A reversal in trend is likely in the next two months if our forecast for a subdued gold price performance [also] proves correct."

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 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.

Adrian Ash 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