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
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

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

Gold Steals Silver's Limelight

Commodities / Gold and Silver 2010 Sep 07, 2010 - 07:17 AM GMT

By: Adrian_Ash

Commodities

Best Financial Markets Analysis ArticleTHE PRICE OF GOLD in wholesale dealing held in a tight range around last week's close as New York re-opened after the Labor Day holiday on Tuesday, trading at $1247 an ounce while European stock markets fell and government bonds rose.

Silver fell almost 2% from Monday's breach of $20 an ounce – a 30-month high previously hit in Nov. 1980.


"Each time a rise in gold hits the headlines, it steals the limelight from silver," says Ashraf Laidi at spread-betting firm CMC Markets, quoted today in the Financial Times.

"Silver has not only followed rallies in gold, but usually outperformed, as can be seen in a fall in the gold/silver ratio – the amount of gold that can be purchased with one ounce of silver."

Yesterday saw the gold/silver ratio fall towards a 12-month low beneath 63 on the London Fixes. Its four-decade average stands at 53 ounces of silver per ounce of gold.

The Euro meantime fell 1.5¢ from 3-week highs to the Dollar early on Tuesday after the Wall Street Journal accused last month's "banking stress tests" of excluding "a significant amount" of government-bond exposure amid the recent Greek deficit crisis.

European finance ministers meeting in Brussels last night agreed "on the need for credible sanctions" against governments that breach the union's debt and deficit limits, EU commissioner Olli Rehn told reporters.

But easing tensions over Greece's deficit have led to "a slight slackening of the dynamism" to fix the system, Germany's Wolfgang Schäuble warned.
 
"Despite concerns over the global economy, precious metals have also come under attack," says Walter de Wet, chief commodities analyst at Standard Bank, this morning.

"[But] while precious metals might be on the back foot for now, lingering uncertainty means the outlook for these metals still looks promising."

"Even though there's some liquidation in the gold ETF, everybody is still bullish," Reuters quotes Ronald Leung of Lee Cheong Gold Dealers in Hong Kong, after New York's SPDR Gold Trust reported a 0.4% drop in its physical holdings.

"There's so much uncertainty in the economy and the [Hindu] festive season is on and we expect to see buying at the lower end.

"I think the next target is the all-time high."

Overall last week, total global gold investment rose by more than 2.1% according to data compiled by London's VM Group consultancy, as a sharp rise in futures and options positions outweighed a slight fall in physically-backed ETF trusts.

In the US Comex gold futures market, "Gross longs in the large speculators' position have gone up by more than 1.5 million ounces [46 tonnes equivalent] in the past three weeks," says VM's weekly report for ABN Amro.

"On a rolling three-week basis, that's the largest advance [in speculative gold futures betting] since the same period ending 22 September 2009...when the gold price was just $1014 an ounce."

Silver investment worldwide last week showed a 6.3% rose on VM's analysis of ETF and futures positions.

Meantime in the stock market on Tuesday, European shares fell nearly 1% after Germany reported an unexpected drop in factory orders for July.

Ahead of Thursday's Bank of England policy meeting, the British Pound fell closer to last week's 1-month lows, buoying the gold price in Sterling above £810 an ounce.

Australian investors looking to buy gold today saw the price hold near A$1370 an ounce – some 11% below the record price of Jan. and May – after the central bank held its lending rate at 4.50%, the highest rate paid on a developed-world currency.

The Bank of Japan also held its key lending rate unchanged on Tuesday, sticking at 0.1% for the 20th month running after weighing a "moderate recovery" against the "possibility that inflation will rise more than expected" due to emerging-economy demand.

Refraining from any new forex-market or money-supply intervention, the BoJ repeated the same vow as the US and UK central banks to "take policy actions in a timely and appropriate manner if judged necessary."

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