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 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
Does the Stock Market Really "See" the Future? - 12th Sept 20
Basel III and Gold, Silver and Platinum - 12th Sept 20
Tech Stocks FANG Index Nearing Critical Support – Could Breakout At Any Moment - 12th Sept 20
The Tech Stocks Quantum AI EXPLOSION is Coming! - 12th Sept 20
AMD Zen 3 Ryzen 4000 Questions Answered on Cores, Prices, Benchmarks and Threadripper Launch - 12th Sept 20
The Inflation Mega-trend is Going Hyper! - 11th Sep 20
Gold / Silver Ratio: Slowly I Toined… - 11th Sep 20
Stock Market Correction or Reversal? The Jury Isn't Out! - 11th Sep 20
Crude Oil – The Bearish Outlook Remains - 11th Sep 20
Crude Oil Breaks Lower – Sparking Fears Of Another Sub $30 Price Collapse - 11th Sep 20
Inflation by Fiat - 10th Sep 20
Unemployment Rate Drops. Will It Drag Gold Down? - 10th Sep 20
How Does The Global Economy Recover After This Global Pandemic? - 10th Sep 20
The Best Mobile Casino - 10th Sep 20
QE4EVER! - 9th Sep 20
AMD Ryzen Zen 3 4800x 10 Core 5ghz CPU, Cinebench Benchmark Scores (Est.) - 9th Sep 20
Stock Traders’ Dreams Come True – Big Technical Price Swings Pending on SP500 - 9th Sep 20
Should You Be Concerned About The Stock Market Big Downside Rotation? - 9th Sep 20
Options Traders Keep "Opting" for Even Higher Stock Market Prices - 8th Sep 20
Gold Stocks in Correction Mode - 8th Sep 20
The law of long-term time preference and Gold ownership - 8th Sep 20
Gold Bull Markets: History and Prospects Ahead - 8th Sep 20
Sheffield City Centre Coronavirus Shopping Opera Ahead of Second Covid-19 Peak - 8th Sep 20

Market Oracle FREE Newsletter

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

Gold Slips as US Dollar Bounces Despite US Economic Slowdown

Commodities / Gold & Silver Mar 27, 2008 - 01:06 PM GMT

By: Adrian_Ash

Commodities THE PRICE OF GOLD slipped 1.1% early in London on Thursday, giving back yesterday's bounce to fall below $943 per ounce as world equity markets ticked higher and crude oil reached a one-week high after a militia attack on Iraq's main oil terminal.

"The Gold Market at the moment continues to drift sideways," says Mitsui in Sydney . "With quarter-end approaching, the metal's momentum to the upside could well be capped in the immediate term."


For European investors wanting to Buy Gold today the price slid beneath €600 per ounce, even as the single currency dropped 0.6% against the Dollar.

The US Dollar also rose against the Japanese Yen, regaining the ¥100 mark despite new data that confirmed the world's largest economy grew by only 0.6% in the last three months of 2007 – down from 4.9% growth in the third quarter.

Prices paid by US residents rose sharply, however, increasing 3.7% year-on-year in Dec. Inflation over the late summer months was only 1.8% annualized.

An auction of $18 billion in five-year US Treasury bonds today will offer yields of barely 2.55% per year, "close to the lowest levels since 2003," according to Bloomberg.

In contrast to the Federal Reserve's aggressive rate-cutting, "the European Central Bank is trying, more than anything else, to prevent inflationary expectations," said ECB president Jean-Claude Trichet on German television last night.

The central bank of Brazil today raised its inflation forecast to 4.6% for 2008, while Taiwanese authorities raised their key lending rate to a near seven-year high.

Back in the metals market, the Gold Price in British Pounds today dropped below £470 as the Pound fell back from the morning's seven-session high of $2.0190.

All base metals rose except zinc at the London Metal Exchange, while Comex silver contracts dropped 0.6% ahead of the New York open as silver continued to out-strip and magnify the volatility in Gold Bullion prices.

"With the Dollar up, it shouldn't come as a surprise that Gold Prices are falling," reckons Peter Fertig at Dresdner Kleinwort's office in Hainburg , Germany .

Reuters reports strong Gold Buying by jewelers and investors in Indonesia , Thailand , Vietnam and India , where the spring wedding season is fast approaching.

"We heard Thailand was running out of gold bars this week," one dealer in Singapore told the newswire overnight, "because many refiners were closed over the Easter holiday, while demand was good.

"I would think physical demand is offering support for gold," he added, pegging $940 as the metal's lower limit for now.

Wall Street stock futures pointed higher ahead of Thursday's open, but Oracle – the world's third largest software firm – threatened to drag the Nasdaq lower after dropping 8.3% overnight on below-forecast earnings.

Crude oil meantime rose to a one-week high above $106 per barrel on news of a pipeline explosion near Basra in southern Iraq .

The country's second city has now been under attack from militia loyal to Moqtada al-Sadr, the Shi'ite cleric. Basra ships most of the 2.32 million barrels of oil Iraq pumps each day.

Pipeline disruptions continued to affect the world's major capital markets early Thursday as well, with the European Central Bank offering extra short-term funds before the end of March. Both the Bank of England and Swiss National Bank worked to ease short-term lending rates in the open market, according to a Reuters report.

"Normally the banks lend to each other," noted Gary Shilling of the eponymous finance consultancy to CNBC overnight, "but what [the Fed] are finding is the banks don't trust each other, so they've got to lend [directly] to the ones who need it."

Standard Fed procedure offers short-term loans to the big "money centre" banks, who are then supposed to pass these extra funds to smaller institutions. But with fear still blocking the inter-bank loans market, "the Fed are stepping in and providing the function of the banking system," says Shilling.

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