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
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 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 Weakens on Rumours of IMF Gold Sales

Commodities / Gold & Silver Apr 08, 2008 - 01:59 PM GMT

By: Mark_OByrne

Commodities Gold is down slightly in early trading in London this morning. Gold was up $13.80 to $923.10 per ounce in trading in New York Friday and silver was up 38 cents to $18.09 per ounce. The London AM Gold Fix at 1030 GMT this morning was at $921.00, £465.95 €584.65 (from $914.70, £460.27 and €582.17 yesterday.

Gold has fallen in London most probably on profit taking but looks  well supported due to dollar weakness, oil back near $110 a barrel and inflationary concerns. This is leading to strong physical demand internationally at these levels ( as seen in recent flows particularly into the ETFs - the silver ETF alone has increased by a significant 5 million ounces alone in recent days).

Today's release of the minutes of the last FOMC meeting may set the tone for the day. There is speculation that FOMC fears regarding significant inflationary pressures could result in interest rates not being cut as aggressively at the end of the month. U.S. pending home sales are again expected to be weak and this should support gold.

08-Apr-08 Last 1 Month YTD 1 Year 5 Year
Gold $     
S&P 500      
© 2008


The latest gold ETF is being launched in Dubai and it too is expected to lead to a significant increase in demand for gold. Gold held by ETFs, listed on the London, New York, Johannesburg and Australian stock exchanges, exceeds 805 tonnes worth about $23 billion and accounts for about 90 percent of all gold ETFs backed by physical bullion. 805 tonnes is more than all the gold held by the People's Bank of China and double the latest in a long line of mooted IMF gold sales.

IMF Gold Sales
More rumoured gold sales from the IMF failed to suppress the price of gold yesterday. These rumours have been doing the rounds for many months and they have failed to affect the market and besides possible short term sell offs they will continue to have little impact on the gold market. Firstly, as the Times of London pertinently notes, “gold sales could run into heavy opposition from the US Congress, where some senators and representatives, especially among Republicans are hostile to the fund and its role. Washington's powerful sway over the IMF means that, in effect, gold sales could not go ahead without Congressional approval allowing the US director on the IMF board to agree to such a sale.” This remains a significant stumbling block and one largely ignored in some of the coverage of the story.

The last time similar proposals were mooted we pointed out how the IMF is committed to  and clearly outlines that
"The Fund has a systemic responsibility to avoid causing disruptions that would adversely impact gold holders and gold producers, as well as the functioning of the gold market."
"The IMF should continue to hold a relatively large amount of gold among its assets, not only for prudential reasons, but also to meet unforeseen contingencies." /exr/facts/gold.htm

UK House Prices Fall Sharply
The UK housing market has taken a sharp turn for the worst with HBOS reporting a 2.5% fall in house prices, the largest monthly fall in UK house prices since 1992. House prices were forecast to fall just 0.3%. With all lenders having withdrawn 100% mortgages, borrowers will be severely hampered from entering the property market which is likely to put further downward pressure on property prices.

House Price Crash Graph

Sterling was under pressure overnight, with the sterling/ euro rate back above GBP 0.79 ahead of the BoE rate decision late in the week. The psychological and technical 0.80 level will likely soon be breached as with house prices falling sharply, rates will be cut.

Sterling will also come under pressure versus gold in the coming months and this latest sell off should be seen as a great opportunity. Gold below £500 per ounce is cheap and will be seen as such in the coming years when gold reaches its inflation adjusted high in sterling of well over £800 in the coming years.

Support and Resistance
Support is at $885, $900 and $910. Resistance is at $950 and $970.


Silver is trading at $18.01/18.06 at 1200 GMT.


Platinum is trading at $2016/2026 (1200  GMT).
Palladium is trading at $452/479 per ounce (1200  GMT). 

By Mark O'Byrne, Executive Director

Gold Investments
63 Fitzwilliam Square
Dublin 2
Ph +353 1 6325010
Fax  +353 1 6619664
Gold Investments
Tower 42, Level 7
25 Old Broad Street
United Kingdom
Ph +44 (0) 207 0604653
Fax +44 (0) 207 8770708

Gold and Silver Investments Ltd. have been awarded the MoneyMate and Investor Magazine Financial Analyst of 2006.

Mission Statement
Gold and Silver Investments Limited hope to inform our clientele of important financial and economic developments and thus help our clientele and prospective clientele understand our rapidly changing global economy and the implications for their livelihoods and wealth.
We focus on the medium and long term global macroeconomic trends and how they pertain to the precious metal markets and our clienteles savings, investments and livelihoods. We emphasise prudence, safety and security as they are of paramount importance in the preservation of wealth.

Financial Regulation: Gold & Silver Investments Limited trading as Gold Investments is regulated by the Financial Regulator as a multi-agency intermediary. Our Financial Regulator Reference Number is 39656. Gold Investments is registered in the Companies Registration Office under Company number 377252 . Registered for VAT under number 6397252A . Codes of Conduct are imposed by the Financial Regulator and can be accessed at or from the Financial Regulator at PO Box 9138, College Green, Dublin 2, Ireland. Property, Commodities and Precious Metals are not regulated by the Financial Regulator

Disclaimer: The information in this document has been obtained from sources, which we believe to be reliable. We cannot guarantee its accuracy or completeness. It does not constitute a solicitation for the purchase or sale of any investment. Any person acting on the information contained in this document does so at their own risk. Recommendations in this document may not be suitable for all investors. Individual circumstances should be considered before a decision to invest is taken. Investors should note the following: The value of investments may fall or rise against investors' interests. Income levels from investments may fluctuate. Changes in exchange rates may have an adverse effect on the value of, or income from, investments denominated in foreign currencies. Past experience is not necessarily a guide to future performance.

All the opinions expressed herein are solely those of Gold & Silver Investments Limited and not those of the Perth Mint. They do not reflect the views of the Perth Mint and the Perth Mint accepts no legal liability or responsibility for any claims made or opinions expressed herein.

Mark O'Byrne Archive

© 2005-2019 - 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