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
Pre-COVID US Economy Wasn’t All That Great Either - 4th Dec 20
Bitcoin Breath Taking Surge - Crypto Trading Event - 4th Dec 20
Platinum Begins A New Rally – Gold & Silver Will Follow - 4th Dec 20
Don't Let the Silver (and Gold) Bull Shake You Off! - 4th Dec 20
Stronger Risk Appetite Sends Gold below $1,800 - 4th Dec 20
A new “miracle compound” is set to take over the biotech market - 4th Dec 20
Eiro-group Review –The power of trading education - 4th Dec 20
Early Investors set to win big as FDA fast-tracks this ancient medicine - 3rd Dec 20
New PC System Switch On, Where's Windows 10 Licence Key? Overclockers UK OEM Review (5) - 3rd Dec 20
Poundland Budget Christmas Decorations Shopping 2020 to Beat the Corona Economic Depression - 3rd Dec 20
What is the right type of insurance for you, and how do you find it? - 3rd Dec 20
What Are the 3 Stocks That Will Benefit from Covid-19? - 3rd Dec 20
Gold & the USDX: Correlations - 2nd Dec 20
How An Ancient Medicine Is Taking On The $16 Trillion Pharmaceutical Industry - 2nd Dec 20
Amazon Black Friday vs Prime Day vs Cyber Monday, Which are Real or Fake Sales - 1st Dec 20
The No.1 Biotech Stock for 2021 - 1st Dec 20
Stocks Bears Last Chance Before Market Rally To SPX 4200 In 2021 - 1st Dec 20
Globalists Poised for a “Great Reset” – Any Role for Gold? - 1st Dec 20
How to Get FREE REAL Christmas Tree 2020! Easy DIY Money Saving - 1st Dec 20
The Truth About “6G” - 30th Nov 20
Ancient Aztec Secret Could Lead To A $6.9 Billion Biotech Breakthrough - 30th Nov 20
AMD Ryzen Zen 3 NO UK MSRP Stock - 5600x, 5800x, 5900x 5950x Selling at DOUBLE FAKE MSRP Prices - 29th Nov 20
Stock Market Short-term Decision Time - 29th Nov 20
Look at These 2 Big Warning Signs for the U.S. Economy - 29th Nov 20
Dow Stock Market Short-term and Long-term Trend Analysis - 28th Nov 20
How To Spot The End Of An Excess Market Trend Phase – Part II - 28th Nov 20
BLOCKCHAIN INVESTMENT PRIMER - 28th Nov 20
The Gold Stocks Correction is Maturing - 28th Nov 20
Biden and Yellen Pushed Gold Price Down to $1,800 - 28th Nov 20
Sheffield Christmas Lights 2020 - Peace Gardens vs 2019 and 2018 - 28th Nov 20

Market Oracle FREE Newsletter

FIRST ACCESS to Nadeem Walayat’s Analysis and Trend Forecasts

Gold Strong Currency for Private Investors as Swiss FX Intervention Costs $870m Per Day

Commodities / Gold and Silver 2010 May 21, 2010 - 07:30 AM GMT

By: Adrian_Ash

Commodities

THE PRICE OF GOLD bounced from a new two-week low in London today, nearing the weekend 4.3% below last Friday's close as world stock markets slumped for the fourth time in seven sessions.

Government bond buying continued to push prices higher, knocking the yield offered by US, German and UK debt to new multi-month lows.


US crude oil contracts meantimee slipped back below $70 per barrel, more than 20% below May's 18-month peak.

"Investors are looking for a strong reserve currency," writes Filippo Finocchi at bullion dealers Italpreziosi in Arezzo, Italy.

"Purchasing protection in the form of gold appears well advised," says economist Charlie Fell, writing in The Irish Times.

"The 'bailout age' could well give way to either malign inflation or destructive deflation. A return to price stability cannot be assured."

On the data front today, the Swiss National Bank reporting buying almost CHF1 billion ($870m) of foreign currencies per day in April, selling Francs to try and depress it in the open market.

"The Swiss are in danger of selling out their remaining economic and monetary independence," says Sean Corrigan at Diapason Commodities in Lausanne, "to buffer their admittedly important exporters from the malfeasance of their neighbors' governments."

Following Wednesday's rumored €9.5bn purchase by the SNB, dealing-room chit-chat in London continued to whisper about "covert intervention" by the European Central Bank today.

"There isn't any evidence so far," says Beat Siegenthaler, strategist at UBS.

US Treasury secretary Tim Geithner will visit the UK and Germany next week "to discuss the measures being taken to restore global confidence and financial stability."

The UK meantime reported zero money-supply growth for last month, together with the largest-ever April deficit on government spending, some £10 billion.

New figures yesterday showed US unemployment claims rising sharply.

Tokyo's Nikkei stock index today finished the week 6.5% lower, falling through 10,000 for the first time since Feb.

"Gold's correlation with the Dollar has turned highly positive [and] with stocks deeply negative," notes Phil Smith at Reuters Technical in Beijing. "This raises a question mark over the sustainability of the [recent] upturn."

"Gold price action remains under pressure," agrees a technical note from Barclays Capital, "falling to two-month trendline support at $1175.

"With daily momentum rolling bearish, the downside bias remains."

In the retail investment market, in contrast, heavy European buying continued as prices slipped on Friday.

By lunchtime in Frankfurt, "Not available" showed against 216 of the 236 gold or Silver Investment products listed by one major German retail dealer.

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