Best of the Week
Most Popular
1. The Trump Stock Market Trap May Be Triggered - Barry_M_Ferguson
2.Why are Central Banks Buying Gold and Dumping Dollars? - Richard_Mills
3.US China War - Thucydides Trap and gold - Richard_Mills
4.Gold Price Trend Forcast to End September 2019 - Nadeem_Walayat
5.Money Saving Kids Gardening Growing Giant Sunflowers Summer Fun - Anika_Walayat
6.US Dollar Breakdown Begins, Gold Price to Bolt Higher - Jim_Willie_CB
7.INTEL (INTC) Stock Investing to Profit From AI Machine Learning Boom - Nadeem_Walayat
8.Will Google AI Kill Us? Man vs Machine Intelligence - N_Walayat
9.US Prepares for Currency War with China - Richard_Mills
10.Gold Price Epochal Breakout Will Not Be Negated by a Correction - Clive Maund
Last 7 days
Tech Giants Will Crash in the Next Stock Market Downturn - 15th Sep 19
Will Draghi’s Swan Song Revive the Eurozone? And Gold? - 15th Sep 19
The Race to Depreciate Fiat Currencies Is Accelerating - 15th Sep 19
Can Crypto casino beat Hybrid casino - 15th Sep 19
British Pound GBP vs Brexit Chaos Timeline - 14th Sep 19
Recession 2020 Forecast : The New Risks & New Profits Of A Grand Experiment - 14th Sep 19
War Gaming the US-China Trade War - 14th Sep 19
Buying a Budgie, Parakeet for the First Time from a Pet Shop - Jollyes UK - 14th Sep 19
Crude Oil Price Setting Up For A Downside Price Rotation - 13th Sep 19
A “Looming” Recession Is a Gold Golden Opportunity - 13th Sep 19
Is 2019 Similar to 2007? What Does It Mean For Gold? - 13th Sep 19
How Did the Philippines Establish Itself as a World Leader in Call Centre Outsourcing? - 13th Sep 19
UK General Election Forecast 2019 - Betting Market Odds - 13th Sep 19
Energy Sector Reaches Key Low Point – Start Looking For The Next Move - 13th Sep 19
Weakening Shale Productivity "VERY Bullish" For Oil Prices - 13th Sep 19
Stock Market Dow to 38,000 by 2022 - 13th Sep 19 - readtheticker
Gold under NIRP? | Negative Interest Rates vs Bullion - 12th Sep 19
Land Rover Discovery Sport Brake Pads and Discs's Replace, Dealer Check and Cost - 12th Sep 19
Stock Market Crash Black Swan Event Set Up Sept 12th? - 12th Sep 19
Increased Pension Liabilities During the Coming Stock Market Crash - 12th Sep 19
Gold at Support: the Upcoming Move - 12th Sep 19
Precious Metals, US Dollar, Stocks – How It All Relates – Part II - 12th Sep 19
Boris Johnson's "Do or Die, Dead in a Ditch" Brexit Strategy - 11th Sep 19
Precious Metals, US Dollar: How It All Relates – Part I - 11th Sep 19
Bank of England’s Carney Delivers Dollar Shocker at Jackson Hole meeting - 11th Sep 19
Gold and Silver Wounded Animals, Indeed - 11th Sep 19
Boris Johnson a Crippled Prime Minister - 11th Sep 19
Gold Significant Correction Has Started - 11th Sep 19
Reasons To Follow Experienced Traders In Automated Trading - 11th Sep 19
Silver's Sharp Reaction Back - 11th Sep 19
2020 Will Be the Most Volatile Market Year in History - 11th Sep 19
Westminister BrExit Extreme Chaos Puts Britain into a Pre-Civil War State - 10th Sep 19
Gold to Correct as Stocks Rally - 10th Sep 19
Market Decline Will Lead To Pension Collapse, USD Devaluation, And NWO - 10th Sep 19
Stock Market Sector Rotation Giving Mixed Signals About The Future - 10th Sep 19
The Online Gaming Industry is Going Up - 10th Sep 19
The Unknown Tech Stock Transforming The Internet - 10th Sep 19
More Wall Street Propaganda - 10th Sep 19
Stock Market Price Structure Still Suggests We Are Within Volatile Rotation - 9th Sep 19
Stock Market Still Treading Water - 9th Sep 19
Buying Pullbacks in Silver & Gold - 9th Sep 19
Government Spending - The High Price of a "Free Lunch" - 9th Sep 19
Don't Worry About a Recession - 9th Sep 19
Large Drop in Stocks, Big Rally in Gold and Silver - 9th Sep 19

Market Oracle FREE Newsletter

The No1 Tech Stock for 2019

Gold Climbs Back Above $1400, Investors Could Sell into Strength

Commodities / Gold and Silver 2013 Apr 19, 2013 - 01:21 PM GMT

By: Ben_Traynor

Commodities

WHOLESALE gold prices rallied above $1400 an ounce Friday morning, with analysts continuing to point to strong demand for physical bullion following gold's sharpest weekly price fall in over four years.

"Expect the market to sell into strength," warns bullion bank Scotia Mocatta, whose technical analysts see support for gold at $1309 an ounce, the February 2011 low.


Gold in Sterling meantime climbed to around £920 an ounce, erasing around half of its losses from Monday, as did gold in Euros which ended Friday morning in London around €1080.

Based on London Fix prices, gold in Dollars looked set for weekly drop of 8.4% by lunchtime in London, the biggest weekly drop since October 2008.

"We believe that despite the current turbulence, the long-term fundamentals of the gold market remain intact," says Marcus Grubb, managing director, investment, at the World Gold Council.

"Physical gold demand in India, China and Dubai is incredible because of the price fall."

In India, traditionally the world's biggest source of gold demand, imports could rise to more than 180 tonnes over the course of the second quarter, a 20% jump on Q1, Bombay Bullion Association president Mohit Kamboj said Thursday.

"There is very good demand and the footfall [at stores selling gold] has increased multi-fold following weakness in gold price," he said.

Earlier in the week dealers in Hong Kong and elsewhere reported premiums opening up on physical gold as a result of increased demand and supply backlogs, while demand for physical gold among investors using the internet has also surged.

Japan's biggest online broker Dot Commodity saw trading volumes for gold jump fourfold on Tuesday compared to a day earlier, it reported in a press release, while traffic to BullionVault, the world's biggest physical gold market online, was its highest since September 2011, when gold set its all-time record high.

Looking ahead to next week, of 34 gold analysts surveyed by Bloomberg, 15 said they expected gold to go up next week, 14 said they see it going down and five declared themselves neutral, the news agency reports today.

Silver meantime climbed as high as $23.90 an ounce this morning, before easing back, while other commodities also ticked higher after sharp falls earlier in the week that saw oil extend its losses for April.

On a weekly basis, silver recorded a weekly loss of 13.6% at Friday lunchtime'sLondon Fix.

"Commodities have been sending [a negative] signal on growth for a while," says Mohamed El-Erian, co-chief investment officer of Pimco, which manages $2trillion of assets, "and now [it is] even louder."

"Gold and silver, the front-runners since 2009, are likely over the next few years to be among the weakest of all the commodities," says a note from Barclays, which has cut its average per ounce gold price forecasts to $1483 for 2013 and $1450 for 2014, down from $1647 and $1600 respectively.

"We see the outlook in the near term as fragile...gold will need to find support from the physical market in the near term, but investor interest continuing to unravel poses the largest downside risk for prices."

Though they remained down on the week, European stock markets ticked higher this morning following gains in Asia, despite losses on US markets yesterday.

"In the short term, US stocks will unlikely see a major correction given solid economic growth and attractive valuations," says a note from Citi.

"Challenges in the second half may include sluggish growth in Europe, bond buying slowdown by the Federal Reserve and budget negotiations in the US."

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