Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
Chinese Tech Stocks CCP Paranoia and Best AI Tech Stocks ETF - 26th Oct 21
Food Prices & Farm Inputs Getting Hard to Stomach - 26th Oct 21
Has Zillow’s Collapse Signaled A Warning For The Capital Markets? - 26th Oct 21
Dave Antrobus Welcomes Caribou to Award-Winning Group Inc & Co - 26th Oct 21
Stock Market New Intermediate uptrend - 26th Oct 21
Investing in Crypto Currencies With Both Eyes WIDE OPEN! - 25th Oct 21
Is Bitcoin a Better Inflation Hedge Than Gold? - 25th Oct 21
S&P 500 Stirs the Gold Pot - 25th Oct 21
Stock Market Against Bond Market Odds - 25th Oct 21
Inflation Consequences for the Stock Market, FED Balance Sheet - 24th Oct 21
To Be or Not to Be: How the Evergrande Crisis Can Affect Gold Price - 24th Oct 21
During a Market Mania, "no prudent professional is perceived to add value" - 24th Oct 21
Stock Market S&P500 Rallies Above $4400 – May Attempt To Advance To $4750~$4800 - 24th Oct 21
Inflation and the Crazy Crypto Markets - 23rd Oct 21
Easy PC Upgrades with Motherboard Combos - Overclockers UK Unboxing - MB, Memory and Ryzen 5600x CPU - 23rd Oct 21
Gold Mining Stocks Q3 2021 - 23rd Oct 21
Gold calmly continues cobbling its Handle, Miners lay in wait - 23rd Oct 21
US Economy Has Been in an Economic Depression Since 2008 - 22nd Oct 21
Extreme Ratios Point to Gold and Silver Price Readjustments - 22nd Oct 21
Bitcoin $100K or Ethereum $10K—which happens first? - 22nd Oct 21
This Isn’t Sci-Fi: How AI Is About To Disrupt This $11 Trillion Industry - 22nd Oct 21
Ravencoin RVN About to EXPLODE to NEW HIGHS! Last Chance to Buy Before it goes to the MOON! - 21st Oct 21
Stock Market Animal Spirits Returning - 21st Oct 21
Inflation Advances, and So Does Gold — Except That It Doesn’t - 21st Oct 21
Why A.I. Is About To Trigger The Next Great Medical Breakthrough - 21st Oct 21
Gold Price Slowly Going Nowhere - 20th Oct 21
Shocking Numbers Show Government Crowding Out Real Economy - 20th Oct 21
Crude Oil Is in the Fast Lane, But Where Is It Going? - 20th Oct 21
3 Tech Stocks That Could Change The World - 20th Oct 21
Best AI Tech Stocks ETF and Investment Trusts - 19th Oct 21
Gold Mining Stocks: Will Investors Dump the Laggards? - 19th Oct 21
The Most Exciting Medical Breakthrough Of The Decade? - 19th Oct 21
Prices Rising as New Dangers Point to Hard Assets - 19th Oct 21
It’s not just Copper; GYX indicated cyclical the whole time - 19th Oct 21
Chinese Tech Stocks CCP Paranoia, VIES - Variable Interest Entities - 19th Oct 21
Inflation Peaked Again, Right? - 19th Oct 21
Gold Stocks Bouncing Hard - 19th Oct 21
Stock Market New Intermediate Bottom Forming? - 19th Oct 21
Beware, Gold Bulls — That’s the Beginning of the End - 18th Oct 21
Gold Price Flag Suggests A Big Rally May Start Soon - 18th Oct 21
Inflation Or Deflation – End Result Is Still Depression - 18th Oct 21
A.I. Breakthrough Could Disrupt the $11 Trillion Medical Sector - 18th Oct 21
US Economy and Stock Market Addicted to Deficit Spending - 17th Oct 21
The Gold Price And Inflation - 17th Oct 21
Went Long the Crude Oil? Beware of the Headwinds Ahead… - 17th Oct 21
Watch These Next-gen Cloud Computing Stocks - 17th Oct 21
Overclockers UK Custom Built PC 1 YEAR Use Review Verdict - Does it Still Work? - 16th Oct 21
Altonville Mine Tours Maze at Alton Towers Scarefest 2021 - 16th Oct 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Daily London Gold Market Report - Immediate Trend Uncertain

Commodities / Gold & Silver Jul 16, 2007 - 09:27 AM GMT

By: Adrian_Ash


THE PRICE OF GOLD barely moved early Monday, trading in a $1 range before rising to break $668 per ounce as the US open drew near.

"Overall trading is not that great, and I don't see buying interest from Indonesia ," said a bullion dealer in Singapore to Reuters. "Demand from Thailand is still OK because of the Thai baht."

"Some people are buying gold because of a slight increase in oil prices," another told the newswire from Hong Kong , "but the market has been stuck in a range in the last couple of days. I guess things will depend on the Dollar; people will be waiting for Bernanke's speech."

Ben Bernanke, chairman of the US Federal Reserve, will give a two-day testimony on the US economy to Congress starting Wednesday. Notes from the most recent Fed meeting – when it chose to keep Dollar rates at 5.25% for the 13th month running – will be released Thursday.

With Tokyo closed for a national holiday today, gold traded flat all through the Asian session before opening London today nearly 1% higher from last week's start. The Euro was little changed against the Dollar after last week's 1.5% leap to fresh record highs.

That capped the Euro price of gold below €485 per ounce. For British investors, the price held above £328 per ounce.

"In the coming week gold will continue to remain a puppet to non-fundamental factors," reckons Wolfgang Wrzesniok-Rossbach for Heraeus, the German refining giant, "making a price-prognosis relatively difficult.

"But from a purely fundamental perspective, given the presently depressed physical demand, it seems to be a little overvalued."

Yesterday's festival of Pushya Nakshatra in north-west India "turned out to be less lucrative for jewelry shopowners than last year," reports Ahmedabad NewsOnline. Sales were down by nearly 75% from 2006, but "Pushya Nakshatra coincided with the festival of Diwali last year," notes Shantibhai Patel, secretary of the Ahmedabad Jewelers Association. "This time people were seen purchasing gold and silver coins, rather than jewelry, which led to a decline in sales figures."

Viewed longer term, strong demand from jewelry fabricators was reported during both of late June's short-lived dips below $650 per ounce. In late 2006, the gold price had to slip below $600 before Asian dealers recorded strong physical sales.

Buyers in India , the world's hungriest gold consumers, "are quite happy with gold at $650 an ounce," says Jonathan Barratt of Commodity Broking Services. He says the price of oil may break $77 per barrel, a fresh 11-month high – and gold has been moving in tandem with energy prices thanks to its traditional role as an inflation hedge.

"Summer months do not usually see much movement in the gold price and this season is unlikely to be much different," says the latest Metals Monthly from Fortis, produced by the Virtual Metals consultancy in London . "Even if pay talks in South Africa 's mining dispute reach deadlock and result in a strike, gold has traditionally been less sensitive to supply disruptions than most metals – and the lower price is playing its part in boosting physical demand. Turkey 's imports in June, when the price averaged a relatively low $656/oz, soared by 178%, year-on-year."

Besides Ben Bernanke's two-day testimony to the US Congress starting Weds – plus the minutes of the latest Fed meeting due Thurs – gold and currency traders will be studying today's Eurozone inflation numbers, recorded as expected at 1.9% year on year. Consumer price inflation in the UK for June is due tomorrow, followed by producer price inflation in the US at 13:30 BST. The all-important US consumer price inflation will be released on Weds.

"Overall conditions look friendly in the near term to a break towards $674 resistance," says today's technical note from Standard Bank. "At current levels, physical interest appears to be dwindling but has potential to return in force on any further market dips below $660."

By Adrian Ash

Gold price chart, no delay | Gold prices live | Latest gold market news
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 , giving you direct access to investment gold, vaulted in Zurich , on $3 spreads and 0.8% dealing fees.

(c) BullionVault 2007

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 - 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