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
UK Government Loses Control of the Coronavirus Pandemic 2nd Wave Forecast Consequences - 1st Oct 20
The Prospects of the Rocky S&P 500 Stock Market Recovery - 1st Oct 20
Global Stock Markets: Keep Your Eye on This Remarkable "Divergence" - 1st Oct 20
Covid-19 - The Only Thing Systematic Is The Destruction Of America - Part 2 - 1st Oct 20
Fed Isn’t Thinking about Rate Hikes. So Does It Maybe Think about Gold? - 1st Oct 20
Who is Spreading the Virus? UK Coronavirus 2nd Wave Analysis - 30th Sep 20
Gold And Silver Follow Up & Future Predictions For 2020 & 2021 – Part II - 30th Sep 20
The Only Thing Systematic Is The Destruction Of America - 29th Sep 20
Fractional-Reserve Banking Is The Elephant In The Room - 29th Sep 20
Gold And Silver Follow Up & Future Predictions For 2020 & 2021 – Part I - 29th Sep 20
Stock Market Short-term Reversal - 29th Sep 20
How Trump co-opted the religious right and stacked the courts with conservatives - 29th Sep 20
Which RTX 3080 GPU to BUY and AVOID! Nvidia, Asus, MSI , Palit, Gigabyte, Zotac, MLCC vs POSCAPS - 29th Sep 20
Gold, Silver & HUI Stocks Big Pictures - 28th Sep 20
It’s Time to Dump Argentina’s Peso - 28th Sep 20
Gold Stocks Seasonal Plunge - 28th Sep 20
Why Did Precious Metals Get Clobbered Last Week? - 28th Sep 20
Is The Stock Market Dow Transportation Index Setting up a Topping Pattern? - 28th Sep 20
Gold Price Setting Up Just Like Before COVID-19 Breakdown – Get Ready! - 27th Sep 20
UK Coronavirus 2nd Wave SuperMarkets Panic Buying 2.0 Toilet Paper , Hand Sanitisers, Wipes... - 27th Sep 20
Gold, Dollar and Rates: A Correlated Story - 27th Sep 20
WARNING RTX 3080 AIB FLAWED Card's, Cheap Capacitor Arrays Prone to Failing Under Load! - 27th Sep 20
Boris Johnson Hits Coronavirus Panic Button Again, UK Accelerting Covid-19 Second Wave - 25th Sep 20
Precious Metals Trading Range Doing It’s Job to Confound Bulls and Bears Alike - 25th Sep 20
Gold and Silver Are Still Locked and Loaded… Don't be Out of Ammo - 25th Sep 20
Throwing the golden baby out with the covid bath water - Gold Wins - 25th Sep 20
A Look at the Perilous Psychology of Financial Market Bubbles - 25th Sep 20
Corona Strikes Back In Europe. Will It Boost Gold? - 25th Sep 20
How to Boost the Value of Your Home - 25th Sep 20
Key Time For Stock Markets: Bears Step Up or V-Shaped Bounce - 24th Sep 20
Five ways to recover the day after a good workout - 24th Sep 20
Global Stock Markets Break Hard To The Downside – Watch Support Levels - 23rd Sep 20
Beware of These Faulty “Inflation Protected” Investments - 23rd Sep 20
What’s Behind Dollar USDX Breakout? - 23rd Sep 20
Still More Room To Stock Market Downside In The Coming Weeks - 23rd Sep 20
Platinum And Palladium Set To Surge As Gold Breaks Higher - 23rd Sep 20
Key Gold Ratios to Other Markets - 23rd Sep 20
Watch Before Upgrading / Buying RTX 3000, RDNA2 - CPU vs GPU Bottlenecks - 23rd Sep 20
Online Elliott Wave Markets Trading Course Worth $129 for FREE! - 22nd Sep 20
Gold Price Overboughtness Risk - 22nd Sep 20
Central Banking Cartel Promises ZIRP Until at Least 2023 - 22nd Sep 20
Stock Market Correction Approaching Initial Objective - 22nd Sep 20
Silver Bulls Will Be Handsomely Rewarded - 21st Sep 20
Fed Will Not Hike Rates For Years. Gold Should Like It - 21st Sep 20
US Financial Market Forecasts and Elliott Wave Analysis Resources - 21st Sep 20
How to Avoid Currency Exchange Risk during COVID - 21st Sep 20
Crude Oil – A Slight Move Higher Has Not Reversed The Bearish Trend - 20th Sep 20
Do This Instead Of Trying To Find The “Next Amazon” - 20th Sep 20
5 Significant Benefits of the MT4 Trading Platform for Forex Traders - 20th Sep 20
A Warning of Economic Collapse - 20th Sep 20
The Connection Between Stocks and the Economy is not What Most Investors Think - 19th Sep 20
A Virus So Deadly, The Government Has to Test You to See If You Have It - 19th Sep 20
Will Lagarde and Mnuchin Push Gold Higher? - 19th Sep 20
RTX 3080 Mania, Ebay Scalpers Crazy Prices £62,000 Trollers Insane Bids for a £649 GPU! - 19th Sep 20
A Greater Economic Depression For The 21st Century - 19th Sep 20
The United Floor in Stocks - 19th Sep 20
Mobile Gaming Market Trends And The Expected Future Developments - 19th Sep 20
The S&P 500 appears ready to correct, and that is a good thing - 18th Sep 20
It’s Go Time for Gold Price! Next Stop $2,250 - 18th Sep 20
Forget AMD RDNA2 and Buy Nvidia RTX 3080 FE GPU's NOW Before Price - 18th Sep 20
Best Back to School / University Black Face Masks Quick and Easy from Amazon - 18th Sep 20
3 Types of Loans to Buy an Existing Business - 18th Sep 20
How to tell Budgie Gender, Male or Female Sex for Young and Mature Parakeets - 18th Sep 20
Fasten Your Seatbelts Stock Market Make Or Break – Big Trends Ahead - 17th Sep 20
Peak Financialism And Post-Capitalist Economics - 17th Sep 20
Challenges of Working from Home - 17th Sep 20
Sheffield Heading for Coronavirus Lockdown as Covid Deaths Pass 432 - 17th Sep 20
What Does this Valuable Gold Miners Indicator Say Now? - 16th Sep 20
President Trump and Crimes Against Humanity - 16th Sep 20
Slow Economic Recovery from CoronaVirus Unlikely to Impede Strong Demand for Metals - 16th Sep 20
Why the Knives Are Out for Trump’s Fed Critic Judy Shelton - 16th Sep 20
Operation Moonshot: Get Ready for Millions of New COVAIDS Positives in the UK! - 16th Sep 20
Stock Market Approaching Correction Objective - 15th Sep 20
Look at This Big Reminder of Dot.com Stock Market Mania - 15th Sep 20
Three Key Principles for Successful Disruption Investors - 15th Sep 20
Billionaire Hedge Fund Manager Warns of 10% Inflation - 15th Sep 20
Gold Price Reaches $2,000 Amid Dollar Depreciation - 15th Sep 20
GLD, IAU Big Gold ETF Buying MIA - 14th Sep 20
Why Bill Gates Is Betting Millions on Synthetic Biology - 14th Sep 20
Stock Market SPY Expectations For The Rest Of September - 14th Sep 20
Gold Price Gann Angle Update - 14th Sep 20
Stock Market Recovery from the Sharp Correction Goes On - 14th Sep 20
Is this the End of Capitalism? - 13th Sep 20
The Silver Big Prize - 13th Sep 20
U.S. Shares Plunged. Is Gold Next? - 13th Sep 20
Why Are 7,500 Oil Barrels Floating on this London Lake? - 13th Sep 20
Sheffield 432 Covid-19 Deaths, Last City Centre Shop Before Next Lockdown - 13th Sep 20
Biden or Trump Will Keep The Money Spigots Open - 13th Sep 20
Gold And Silver Up, Down, Sideways, Up - 13th Sep 20

Market Oracle FREE Newsletter

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

Gold Sinks Like a Stone to $906 On Heavy Investment Fund Liquidation

Commodities / Gold & Silver Mar 20, 2008 - 10:53 AM GMT

By: Adrian_Ash

Commodities THE PRICE OF GOLD sank as European markets opened for business on Thursday, giving back a 2% rally in Asia to plummet towards a new one-month low, just shy of $906 per ounce.

Bouncing more than 12% beneath Monday's all-time record high of $1,034, the Gold Market then rallied to record an AM Fix in London of $913.50 per ounce – its lowest level since Feb. 18th.


Soft commodity and base metal prices also extended their losses, while crude oil slipped below $102 per barrel in after-hours US trade last night – down almost 8% from last week's all-time record high.

Asian stock markets were mixed; London and French equities fell; the German Dax held near break-even by lunchtime in Frankfurt .
 
"We have to see whether the [big investment] funds will continue selling," said Ronald Leung, head of Lee Cheong Gold Dealers in Hong Kong , to Reuters this morning.

"If they do, of course there is a possibility that Gold will go down and test $900."

Leung blames this week's 11% plunge on Tuesday's smaller-than-expected cut to US interest rates from the Federal Reserve, plus the "absence" of Japanese speculators willing to Buy Gold at lower levels.

Next week marks the end of the Japanese tax-year, a cautious period for Tokyo investment funds when they're more likely to close out gains than extend or establish new positions.

It's also signal that Wednesday's sharp fall coincided with the start of US dealing. Bullish gold futures traders – waking up to Comex margin calls after the initial 3% drop following the Federal Reserve's apparently "small" cut to interest rates of Tuesday afternoon – may well have been forced to liquidate their leveraged gold positions to cover losses elsewhere.

"It is likely that bargain buying could lift Gold Prices as there is still some upside risk to global financial markets," notes today's Precious Metals Daily from Walter de Wet at Standard Bank in Johannesburg .

That risk is "reflected by [wide] credit spreads" between corporate & financial vs. government bond yields. But given the "heavy fund liquidation...we envisage near-term weakness going forward" in precious metals, de Wet concludes.

Back in Hong Kong today, the stock market lost 3.6% by lunchtime, led down by an 8.4% loss in PetroChina – the world's largest energy stock by market-cap – which announced below-forecast earnings.

Zijin Mining Group, China 's biggest gold producer, lost one-fifth of its value. In Sydney , Australia , Newcrest Mining – Asia 's No.1 gold stock – lost 11% by the close.

Financial and export stocks listed in Tokyo, however, pushed the Nikkei index 2.5% higher as the US Dollar regained half-a-Yen to ¥99.65.

The European single currency fell to a one-week low of $1.5450, stemming the plunge in Gold Prices in Euros at €585.50 per ounce.

For British investors looking to Buy Gold today, the price bounced 10.5% below Monday's new record peak at £458 per ounce.

Today in London the Bank of England receive a formal request from the UK's biggest banks to offer extended "liquidity" loans to the London market in return for a wider range of higher-risk collateral.

"The Bank of England is keen to ensure we've for good, strong confidence in our banks," said Angela Knight of the British Bankers Association to the BBC this morning.

"After all, we've got good, strong banks."

At present, these "good, strong" banks will not lend freely to each other. The last auction of short-term money from the Bank of England was over-subscribed more than five times over.

The Bank of England today added an extra £5 billion to its regular weekly auction of short-term funds to commercial banks, taking the total cash on offer to £11bn ($21.8bn).

Apparent "scare-mongering" blamed on unscrupulous short-sellers created an 18% drop in HBOS – the UK 's very biggest mortgage lender – on Wednesday. The Bank of England took the unprecedented step of telephoning London news agencies directly to say that it was not supporting any UK banks.

Many banking staff across the Square Mile have been asked to work tomorrow's Good Friday holiday.

By Adrian Ash
BullionVault.com

Gold price chart, no delay | Free Report: 5 Myths of the Gold Market
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 2008

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.

Adrian Ash 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