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
Why You Shouldn’t Get Excited About Gold Price Mini-Rally - 26th Jan 21
The Truth About Personal Savings Everybody Should Know and Think About - 26th Jan 21
4 Economic Challenges for 2021 - 26th Jan 21
Scan Computers 2021 "Awaiting Picking" - 5950x RTX 3080 Custom PC Build Stock Status - 26th Jan 21
The End of the World History Stock Market Chart : Big Pattern = Big Move - 26th Jan 21
Stock Market Recent Sector Triggers Suggest Stocks May Enter Rally Phase - 26th Jan 21
3 Top-Performing Tech Stocks for 2021 - 26th Jan 21
5 Tips to Manage Your Debt - 26th Jan 21
Stock Market Intermediate Trend Intact - 25th Jan 21
Precious Metals Could Decline Before their Next Attempt to Rally - 25th Jan 21
Great Ways of Choosing Good CMMS Software for a Business - 25th Jan 21
The Dark Forces behind American Insurrectionists - 25th Jan 21
Economic Stimulus Doesn’t Always Stimulate – Pushing On A String - 25th Jan 21
Can Karcher K7 Pressure Washer Clean a Weed Infested Driveway? Extreme Power Test - 25th Jan 21
Lockdown Sea Shanty Craze - "Drunken Sailor" on the Pirate Falls Crazy Boat Ride - 25th Jan 21
Intel Empire Fights Back with Rocket and Alder Lake! - 24th Jan 21
4 Reasons for Coronavirus 2021 Hope - 24th Jan 21
Apple M1 Chip Another Nail in Intel's Coffin - Top AI Tech Stocks 2021 - 24th Jan 21
Stock Market: Why You Should Prepare for a Jump in Volatility - 24th Jan 21
What’s next for Bitcoin Price – $56k or $16k? - 24th Jan 21
How Does Credit Repair Work? - 24th Jan 21
Silver Price 2021 Roadmap - 22nd Jan 21
Why Biden Wants to Win the Fight for $15 Federal Minimum Wage - 22nd Jan 21
Here’s Why Gold Recently Moved Up - 22nd Jan 21
US Dollar Decline creates New Sector Opportunities to Trade - 22nd Jan 21
Sandisk Extreme Micro SDXC Memory Card Read Write Speed Test Actual vs Sales Pitch - 22nd Jan 21
NHS Recommends Oximeter Oxygen Sensor Monitors for Everyone 10 Months Late! - 22nd Jan 21
DoorDash Has All the Makings of the “Next Amazon” - 22nd Jan 21
How to Survive a Silver-Gold Sucker Punch - 22nd Jan 21
2021: The Year of the Gripping Hand - 22nd Jan 21
Technology Minerals appoints ex-BP Petrochemicals CEO as Advisor - 22nd Jan 21
Gold Price Drops Amid Stimulus and Poor Data - 21st Jan 21
Protecting the Vulnerable 2021 - 21st Jan 21
How To Play The Next Stage Of The Marijuana Boom - 21st Jan 21
UK Schools Lockdown 2021 Covid Education Crisis - Home Learning Routine - 21st Jan 21
General Artificial Intelligence Was BORN in 2020! GPT-3, Deep Mind - 20th Jan 21
Bitcoin Price Crash: FCA Warning Was a Slap in the Face. But Not the Cause - 20th Jan 21
US Coronavirus Pandemic 2021 - We’re Going to Need More Than a Vaccine - 20th Jan 21
The Biggest Biotech Story Of 2021? - 20th Jan 21
Biden Bailout, Democrat Takeover to Drive Americans into Gold - 20th Jan 21
Pandemic 2020 Is Gone! Will 2021 Be Better for Gold? - 20th Jan 21
Trump and Coronavirus Pandemic Final US Catastrophe 2021 - 19th Jan 21
How To Find Market Momentum Trades for Explosive Gains - 19th Jan 21
Cryptos: 5 Simple Strategies to Catch the Next Opportunity - 19th Jan 21
Who Will NEXT Be Removed from the Internet? - 19th Jan 21
This Small Company Could Revolutionize The Trillion-Dollar Drug Sector - 19th Jan 21
Gold/SPX Ratio and the Gold Stock Case - 18th Jan 21
More Stock Market Speculative Signs, Energy Rebound, Commodities Breakout - 18th Jan 21
Higher Yields Hit Gold Price, But for How Long? - 18th Jan 21
Some Basic Facts About Forex Trading - 18th Jan 21
Custom Build PC 2021 - Ryzen 5950x, RTX 3080, 64gb DDR4 Specs - Scan Computers 3SX Order Day 11 - 17th Jan 21
UK Car MOT Covid-19 Lockdown Extension 2021 - 17th Jan 21
Why Nvidia Is My “Slam Dunk” Stock Investment for the Decade - 16th Jan 21
Three Financial Markets Price Drivers in a Globalized World - 16th Jan 21
Sheffield Turns Coronavirus Tide, Covid-19 Infections Half Rest of England, implies Fast Pandemic Recovery - 16th Jan 21

Market Oracle FREE Newsletter

FIRST ACCESS to Nadeem Walayat’s Analysis and Trend Forecasts

Gold Investors Evaporate as North Korea Tensions Rise

Commodities / Gold and Silver 2013 Apr 02, 2013 - 01:57 PM GMT

By: Ben_Traynor

Commodities

U.S. DOLLAR prices to buy gold dipped back below $1600 an ounce Tuesday morning, though they remained close to that level by lunchtime in London, as the physical bullion market re-opened following the Easter break.

Stock markets edged higher in Europe despite news of record high unemployment and contracting manufacturing sectors, while major government bond prices dipped.


"Looking at gold for six months shows the metal making successively lower lows and lower highs," says the latest technical analysis from Scotia Mocatta.

"The last major lower high was $1620...We feel that while this $1620 level holds, the risk is for another drop to $1555 and possibly the one year low of $1528."

"We saw buying interest from the general public on TOCOM this morning," says one dealer in Tokyo, referring to the Tokyo Commodity Exchange.

"But then it disappeared. [People] don't want to buy or sell because of the matters concerning North Korea."

North Korea said over the weekend that it is in a 'state of war' with South Korea, technically true since the 1950-53 Korean War ended with an armistice rather than a peace treaty. Pyongyang, which conducted a third nuclear test in February, has also said it will restart all facilities at its Yongbyon nuclear complex.

In the south, "people do seem a bit more concerned than before," says one BullionVault contact based in Seoul, adding that a colleague of his has "bought lots of noodles and canned food 'just in case'".

"People's fear is more based on the fact that the North has done small attacks in recent years to force a return to the negotiating table, and that if they do the same again, it could escalate this time because the South's new president will need to show a reaction."

BullionVault's Gold Investor Index fell for the third month running in March, figures published Tuesday show, despite the online precious metals exchange seeing its busiest week since mid-
October following the Cyprus bailout news.

The world's biggest gold exchange traded fund meantime continued to see outflows Monday. The volume of gold backing shares in the SPDR Gold Trust (ticker: GLD) fell to its lowest level since July 2011 at just over 1217 tonnes.

On the Comex exchange, the so-called speculative net long position of gold futures and options traders, calculated as the difference between the number of bullish and bearish contracts held by hedge funds and other money managers, fell by 0.2% to the equivalent of 397.3 tonnes in the week ended last Tuesday, weekly data published by the Commodity Futures Trading Commission show.

Silver meantime fell below $28 an ounce Tuesday, trading near seven-month lows, while other commodities were broadly flat on the day.

"In the past two weeks silver has been performing more like a base metal and less like a store of value," says today's commodities note from Commerzbank.

"Silver's underlying demand/supply fundamentals remain weak...inventory is abundant," says Standard Bank's monthly Precious Metals Definer, estimating that China's surplus is equivalent to 18 months' of fabrication demand.

"The situation within China implies that one of two scenarios should happen before silver can rise substantially higher on a sustainable basis: (1) internal demand (fabrication and investment demand) must grow faster to decrease the stockpiles, or (2) China must become a net exporter of silver again."

Standard's analysts add that the second scenario "would only imply that the metal has shifted location and not been consumed — the result of which would be price neutral at best."

Although the Dollar silver price ended the first quarter down more than 4%, the US Mint recorded its strongest quarter for silver coins sales since it began keeping records in 1986. 

Over in Europe, the Eurozone unemployment rate hit a record 12% in January, according to revised figures published this morning, maintaining that level in February.

Eurozone manufacturing meantime continued to contract last month and a faster rate than a month earlier, according to purchasing managers index data published Tuesday. Germany's manufacturing PMI fell back below 50, also indicating contraction, while Britain's PMI fell further below 50.

India is unlikely to raise gold import duties again, having raised them to 6% in January, according to the country's finance minister.

"There are limits to which tariffs can be raised on gold," P. Chidambaram told Reuters Tuesday, "because if you raise tariffs prohibitively, gold smuggling will increase."

Turkey imported 18.26 tonnes of gold last month, up from 17.34 tonnes a month earlier, according to data from the Istanbul Gold Exchange. Turkish gold imports in 2012 were up 51% from a year earlier at 120.78 tonnes. Turkey's gold exports also jumped last year, with reports suggesting it was using gold in trade with sanctions-hit Iran.

By Ben Traynor
BullionVault.com

Gold price chart, no delay   |   Buy gold online at live prices

Editor of Gold News, the analysis and investment research site from world-leading gold ownership service BullionVault, Ben Traynor was formerly editor of the Fleet Street Letter, the UK's longest-running investment letter. A Cambridge economics graduate, he is a professional writer and editor with a specialist interest in monetary economics.(c) BullionVault 2013

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.

Ben Traynor Archive

© 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