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
MUST WATCH Before You Waste Money on Buying A New PC Computer System - 27th Nov 20
Gold: Insurance for Prudent Investors, Precious Metals Reduce Risk & Preserve Wealth - 27th Nov 20
How To Spot The End Of An Excess Market Trend Phase - 27th Nov 20
Snow Falling Effect Christmas Lights Outdoor Projector Amazon Review - 27th Nov 20
4 Reasons Why You Shouldn't Put off Your Roof Repairs - 27th Nov 20
Further Clues Reveal Gold’s Weakness - 26th Nov 20
Fun Things to Do this Christmas - 26th Nov 20
Industries that Require Secure Messaging Apps - 26th Nov 20
Dow Stock Market Trend Analysis - 25th Nov 20
Amazon Black Friday Dell 32 Inch S3220DGF VA Curved Screen Gaming Monitor Bargain Deal! - 25th Nov 20
Biden the Silver Bull - 25th Nov 20
Inflation Warning to the Fed: Be Careful What You Wish For - 25th Nov 20
Financial Stocks Sector ETF Shows Unique Island Setup – What Next? - 25th Nov 20
Herd Immunity or Herd Insolvency: Which Will Affect Gold More? - 25th Nov 20
Stock Market SEASONAL TREND and ELECTION CYCLE - 24th Nov 20
Amazon Black Friday - Karcher K7 FC Pressure Washer Assembly and 1st Use - Is it Any Good? - 24th Nov 20
I Dislike Shallow People And Shallow Market Pullbacks - 24th Nov 20
Small Traders vs. Large Traders vs. Commercials: Who Is Right Most Often? - 24th Nov 20
10 Reasons You Should Trade With a Regulated Broker In UK - 24th Nov 20
Stock Market Elliott Wave Analysis - 23rd Nov 20
Evolution of the Fed - 23rd Nov 20
Gold and Silver Now and Then - A Comparison - 23rd Nov 20
Nasdaq NQ Has Stalled Above a 1.382 Fibonacci Expansion Range Three Times - 23rd Nov 20
Learn How To Trade Forex Successfully - 23rd Nov 20
Market 2020 vs 2016 and 2012 - 22nd Nov 20
Gold & Silver - Adapting Dynamic Learning Shows Possible Upside Price Rally - 22nd Nov 20
Stock Market Short-term Correction - 22nd Nov 20
Stock Market SPY/SPX Island Setups Warn Of A Potential Reversal In This Uptrend - 21st Nov 20
Why Budgies Make Great Pets for Kids - 21st Nov 20
How To Find The Best Dry Dog Food For Your Furry Best Friend?  - 21st Nov 20
The Key to a Successful LGBT Relationship is Matching by Preferences - 21st Nov 20
Stock Market Dow Long-term Trend Analysis - 20th Nov 20
Margin: How Stock Market Investors Are "Reaching for the Stars" - 20th Nov 20
World’s Largest Free-Trade Pact Inspiration for Global Economic Recovery - 20th Nov 20
Dating Sites Break all the Stereotypes About Distance - 20th Nov 20
THE STOCK MARKET BIG PICTURE - Video - 19th Nov 20
Reasons why Bitcoin is Treading at it's Highest Level Since 2017 and a Warning - 19th Nov 20
Media Celebrates after Trump’s Pro-Gold Fed Nominee Gets Blocked - 19th Nov 20
DJIA Short-term Stock Market Technical Trend Analysis - 19th Nov 20
Demoncracy Ushers in the Flu World Order How to Survive and Profit From What Is Coming - 19th Nov 20
US Bond Market: "When Investors Should Worry" - 18th Nov 20
Gold Remains the Best Pandemic Insurance - 18th Nov 20
GPU Fan Not Spinning FIX - How to Easily Extend the Life of Your Gaming PC System - 18th Nov 20
Dow Jones E-Mini Futures Tag 30k Twice – Setting Up Stock Market Double Top - 18th Nov 20
Edge Computing Is Leading the Next Great Tech Revolution - 18th Nov 20
This Chart Signals When Gold Stocks Will Explode - 17th Nov 20
Gold Price Momentous ally From 2000 Compared To SPY Stock Market and Nasdaq - 17th Nov 20
Creating Marketing Campaigns Using the Freedom of Information Act - 17th Nov 20
ILLEGITIMATE PRESIDENT - 17th Nov 20
Stock Market Uptrend in Process - 17th Nov 20
How My Friend Made $128,000 Investing in Stocks Without Knowing It - 16th Nov 20
Free-spending Biden and/or continued Fed stimulus will hike Gold prices - 16th Nov 20
Top Cheap Budgie Toys - Every Budgie Owner Should Have These Safe Bird Toys! - 16th Nov 20
Line Up For Your Jab to get your Covaids Freedom Pass and a 5% Work From Home Tax - 16th Nov 20
You May Have Overlooked These “Sleeper” Precious Metals - 16th Nov 20
Demystifying interesting facts about online Casinos - 16th Nov 20
What's Ahead for the Gold Market? - 15th Nov 20
Gold’s Momentous Rally From 2000 Compared To Stock Market SPY & QQQ - 15th Nov 20
Overclockers UK Quality of Custom Gaming System Build - OEM Windows Sticker? - 15th Nov 20
UK GCSE Exams 2021 CANCELLED! Grades Based on Mock Exams and Teacher Assessments - 15th Nov 20

Market Oracle FREE Newsletter

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

Gold Price Capped by Greece Debt Crisis

Commodities / Gold and Silver 2010 Apr 22, 2010 - 09:00 AM GMT

By: Adrian_Ash

Commodities

Best Financial Markets Analysis ArticleTHE PRICE OF GOLD fell hard against the Dollar as New York opened for business on Thursday, sliding 1.4% from yesterday's high as US stocks also dropped over 1% and crude oil fell through $83 per barrel.

New data showed worse-than-expected US jobless claims for last week, plus faster-than-expected factory-gate inflation in March.


The Euro dropped towards March's 10-month lows as Greek government debt fell sharply once more.

"The Euro remains on the back-foot, as Greece's problems continue to intensify," notes Walter de Wet at Standard Bank.

"While gold is holding steady on ever-increasing sovereign risk, the stronger Dollar is capping upside. We expect this to remain the case.

"In recent weeks, we have seen decent physical demand whenever gold drops below $1130."

Paris paper Le Figaro said yesterday that France "is ready" to lend Athens almost €4 billion for 3 years at 5% per annum – the first chunk of a possible €45bn agreed by the Eurozone and IMF this month.

The cost of insuring Greek debt against default today rose to a new record high above 5.0% per year.

The gold price in Euros dipped through €27,500 per kilo as the Dollar rose.

British investors wanting to buy gold saw the price fall back to last week's close at £740 an ounce – the fourth highest-ever Friday finish – as the UK government reported its worst-ever peacetime borrowing figures.

"Given the speed of the rise [in platinum-group metals] over the last month, and the flow of scrap metal now coming back to market, any sort of failure at this level could lead to a significant correction," say metals-conglomerate Mitsui in a note, pointing to the near-26 month highs in platinum and palladium prices.

"But the longer-term fundamentals still look extremely bullish."

Global demand for platinum fell by 14% last year, the GFMS precious-metals consultancy reported today, led by a sharp fall in auto-catalyst production that came despite tax-funded "cash for clunkers" scheme across Western Europe and North America.

Platinum prices still rose 57% regardless, however, even as the global market moved into a record "surplus" of nearly 1.1 million ounces on GFMS's data.

"Jewelry was the savior last year," senior GFMS consultant Peter Ryan told Bloomberg by phone today.

"The worry now is we're already seeing signs of weaker jewelry demand in 2010 and we're also seeing signs of increased jewelry scrap flows."

Scrap gold grew by 27% to a record 1549 tonnes last year from 2009, GFMS said earlier this month.

Recycled metal accounted for a record 40% of all gold supplied worldwide, according to the consultancy's data.

Former world No.5 gold consumer, Turkey exported nearly 120 tonnes of gold jewelry in 2009 according to Erkan Kurtulmuş, president of the İstanbul Chamber of Commerce Jewelry Committee and owner of İnci Jewelry, speaking this week to English-language newspaper Today's Zaman in Istanbul.

"Some 40 tonnes came from gold that was kept under the mattress, back into the market again due to high gold prices. Another 40 tonnes was previously imported gold, while the remaining 40 tonnes came from scrap gold which was melted down and reshaped."

Yesterday First Cash Financial, the US and Mexico pawnbroking chain, reported a 26% increase in scrap-jewelry sales during the first quarter of 2010, primarily due to rising gold prices but also thanks to a 3% increase in scrap volumes purchased.

"People have only so much [gold jewelry] they can liquidate," notes one scrap-buying jeweler in the US, "and everybody and their sister have been setting up shop to buy.

"About 8 weeks ago, [scrap gold] supply dropped by 60-70% to what I would call typical levels," he tells The Daily Reckoning, confirming that jewelers, wholesalers and refiners nationwide report the same drop.

Over in the Philippines, meantime, the Social Security System said Wednesday it wants to introduce gold trading on the Manila stock exchange, adding that it's already approached the central bank to buy PHP 1 billion ($22.5m) of bullion.

The Bangko Sentral ng Pilipinas currently holds 154 tonnes of gold, according to data compiled by the World Gold Council, the 20th largest sovereign hoard.

That's down by 44% from a record peak of 274 tonnes in early 2003.

"The plan would enable SSS to hedge part of its assets in gold reserves, which is widely considered a safe and stable investment," the Social Security System said in a statement.

By Adrian Ash
BullionVault.com

Gold price chart, no delay | Free Report: 5 Myths of the Gold Market
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 2010

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.


© 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