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
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
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

Market Oracle FREE Newsletter

FIRST ACCESS to Nadeem Walayat’s Analysis and Trend Forecasts

Gold Jumps on Euro Slump and Poor U.S. Jobs Data

Commodities / Gold and Silver 2010 Jun 04, 2010 - 07:41 AM GMT

By: Adrian_Ash

Commodities

Best Financial Markets Analysis ArticleTHE PRICE OF GOLD in spot wholesale dealing bounced from its lowest US-price in nine sessions on Friday lunchtime in London, rallying from a dip to $1200 as the Euro currency sank to a new four-year low vs. the Dollar.

New data showed US payrolls rising by 431,000 in May – fewer than expected.


Some 400,000 of those jobs are temporary hires for the government Census.

Gold priced in Euros jumped 2.0% inside an hour, rising back above €32,100 per kilo.

British investors looking to buy gold at wholesale prices saw it cut this week's 2.3% drop in half, briefly touching £830 an ounce.

"Upside momentum is fading [but] we believe this will be temporary," says Walter de Wet at Standard Bank.

"We expect movements lower in gold to be bought. Investment demand remains healthy."

New York's SPDR Gold Trust – the world's single-largest gold ETF – yesterday added another 21 tonnes to the bullion it holds in trust at HSBC in London.

Ticker GLD, the trust fund has swelled by 1.7% already in June, adding more than 11% to its gold holdings from the start of May.

ETFSecurities Scott Thompson said Thursday that European investors accounted for the bulk of last month's $1 billion inflows to the ETF provider's commodity products.

"Trading volumes have risen to around $3 billion per week," he told a press briefing. "Gold alone accounts for around half of that figure."

BusinessWeek reports that gold coin sales to Europe from Australia's Perth Mint "surged in May", with Eurozone buyers accounting for 69% of orders, compared with 51% in April.

"As soon as it was announced the European Commission was bailing out Greece, the German population decided they'd better hedge their Euros by buying precious metals," said Ron Currie, sales and marketing director.

"We had stock before this blip in the market, then it all went," he added, confirming that the Perth Mint is currently working "flat out" to meet demand.

Asian Gold Trading "remained lacklustre" on Friday said one dealer, however, and London trade had been "deadly quiet" ahead of the US jobs data, according to another.

Thursday's flat close in New York equities was repeated in Tokyo and Hong Kong. European shares fell on rumors of a risky derivatives position at French bank SocGen.

Crude oil stalled at Thursday's 1-week high. Zinc fell to its lowest level since July 2009.

Soft commodities rose, in contrast, pushing wheat and corn prices higher.

Cocoa hit a 21-year high according to Bloomberg data.

"We're seeing cut, cut, cut in all the countries simultaneously, which is what they did in 1931 and that caused the Great Depression," said European Trade Union Confederation head John Monks to the Associated Press today.

"[There's] quite a bit of social unrest in some countries," he warned after meeting with Europe's employer lobby and EU Commission president Jose Manual Barroso today – a meeting Monks said he'd called "out of despair and alarm at the prospects for growth" after all 27 European Union members announced new "austerity" budgets.

At the monetary level, the European Central Bank "is a long way from committing itself to full-scale quantitative easing," notes CLSA's Greed & Fear analyst Christopher Woods.

"Such a policy will only occur after a further collapse in stock markets and a further rise in credit spreads."

Woods advises investors bet on "Spanish Flu" and take positions against Spanish banks.

Fitch Ratings downgraded several Spanish institutions on Tuesday. The central bank in Madrid says that €166 billion of the €445bn in real-estate assets held by Spain's banking sector are "potentially troubled".

French bank BNP Paribas said Wednesday that a "bad bank" – if not "bank-by-bank stress-testing, with subsequent recapitalization" – could be necessary in Spain.

"Gold was pretty much on a one-way street [over the last month], and it is only natural that we see a bit of a correction," said Afshin Nabavi of MKS Finance in Geneva to Bloomberg earlier.

"In the medium to long term, this may be an opportunity to buy into dips."

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