Best of the Week
Most Popular
1. Market Decline Will Lead To Pension Collapse, USD Devaluation, And NWO - Raymond_Matison
2.Uber’s Nightmare Has Just Started - Stephen_McBride
3.Stock Market Crash Black Swan Event Set Up Sept 12th? - Brad_Gudgeon
4.GDow Stock Market Trend Forecast Update - Nadeem_Walayat
5.Gold Significant Correction Has Started - Clive_Maund
6.British Pound GBP vs Brexit Chaos Timeline - Nadeem_Walayat
7.Cameco Crash, Uranium Sector Won’t Catch a break - Richard_Mills
8.Recession 2020 Forecast : The New Risks & New Profits Of A Grand Experiment - Dan_Amerman
9.Gold When Global Insanity Prevails - Michael Ballanger
10.UK General Election Forecast 2019 - Betting Market Odds - Nadeem_Walayat
Last 7 days
YouGov's MRP Poll Final Tory Seats Forecast Revised Down From 359 to 338, Possibly Lower? - 10th Dec 19
What UK Economy (Average Earnings) Predicts for General Election Results 2019 - 10th Dec 19
Labour vs Tory Manifesto's UK General Election Parliamentary Seats Forecast 2019 - 10th Dec 19
Lumber is about to rally and how to play it with this ETF - 10th Dec 19
Social Mood and Leaders Impact on General Election Forecast 2019 - 9th Dec 19
Long-term Potential for Gold Remains Strong! - 9th Dec 19
Stock and Financial Markets Review - 9th Dec 19
Labour / Tory Manifesto's Impact on UK General Election Seats Forecast 2019 - 9th Dec 19
Tory Seats Forecast 2019 General Election Based on UK House Prices Momentum Analysis - 9th Dec 19
Top Tory Marginal Seats at Risk of Loss to Labour and Lib Dems - Election 2019 - 9th Dec 19
UK House Prices Momentum Tory Seats Forecast General Election 2019 - 8th Dec 19
Why Labour is Set to Lose Sheffield Seats at General Election 2019 - 8th Dec 19
Gold and Silver Opportunity Here Is As Good As It Gets - 8th Dec 19
High Yield Bond and Transports Signal Gold Buy Signal - 8th Dec 19
Gold & Silver Stocks Belie CoT Caution - 8th Dec 19
Will Labour Government Spending Bankrupt Britain? UK Debt and Deficits - 7th Dec 19
Lib Dem Fake Tory Election Leaflets - Sheffield Hallam General Election 2019 - 7th Dec 19
You Should Be Buying Gold Stocks Now - 6th Dec 19
The End of Apple Has Begun - 6th Dec 19
How Much Crude Oil Do You Unknowingly Eat? - 6th Dec 19
Labour vs Tory Manifesto Voter Bribes Impact on UK General Election Forecast - 6th Dec 19
Gold Price Forecast – Has the Recovery Finished? - 6th Dec 19
Precious Metals Ratio Charts - 6th Dec 19
Climate Emergency vs Labour Tree Felling Councils Reality - Sheffield General Election 2019 - 6th Dec 19
What Fake UK Unemployment Statistics Predict for General Election Result 2019 - 6th Dec 19
What UK CPI, RPI and REAL INFLATION Predict for General Election Result 2019 - 5th Dec 19
Supply Crunch Coming as Silver Miners Scale Back - 5th Dec 19
Gold Will Not Surpass Its 1980 Peak - 5th Dec 19
UK House Prices Most Accurate Predictor of UK General Elections - 2019 - 5th Dec 19
7 Year Cycles Can Be Powerful And Gold Just Started One - 5th Dec 19
Lib Dems Winning Election Leaflets War Against Labour - Sheffield Hallam 2019 - 5th Dec 19
Do you like to venture out? Test yourself and see what we propose for you - 5th Dec 19
Great Ways To Make Money Over Time - 5th Dec 19
Calculating Your Personal Cost If Stock, Bond and House Prices Return To Average - 4th Dec 19
Will Labour Government Plant More Tree's than Council's Like Sheffield Fell? - 4th Dec 19
What the UK Economy GDP Growth Rate Predicts for General Election 2019 - 4th Dec 19
Gold, Silver and Stock Market Big Picture: Seat Belts Tightened - 4th Dec 19
Online Presence: What You Need to Know About What Others Know About You - 4th Dec 19
New Company Tip: How To Turn Prospects into Customers with CRM Tech - 4th Dec 19
About To Relive The 2007 US Housing Market Real Estate Crash Again? - 3rd Dec 19
How Far Will Gold Reach Before the Upcoming Reversal? - 3rd Dec 19
Is The Current Stock Market Rally A True Valuation Rally or Euphoria? - 3rd Dec 19
Why Shale Oil Not Viable at $45WTI Anymore, OPEC Can Dictate Price Again - 3rd Dec 19
Lib Dem Election Dodgy Leaflets - Sheffield Hallam Battle General Election 2019 - 3rd Dec 19
Land Rover Discovery Sport Brake Pads Uneven Wear Dash Warning Message at 2mm Mark - 3rd Dec 19
The Rise and Evolution of Bitcoin - 3rd Dec 19
Virtual games and sport, which has one related to the other - 3rd Dec 19

Market Oracle FREE Newsletter

UK House prices predicting general election result

Gold Strong on Crude Oil New All Time High

Commodities / Gold & Silver Apr 15, 2008 - 11:14 AM GMT

By: Adrian_Ash

Commodities THE SPOT PRICE OF GOLD rose to a four-session high in Asian and London trade on Tuesday, gaining almost 1% overnight as world stock markets crept higher and US bond prices rose.

Crude oil jumped to a fresh record high above $112.80 per barrel.


"Market participants are still very much on the long side," said one Singapore Gold Dealer to Reuters earlier. "We need to see fresh buying from [investment] funds to bid gold up to above $940."

The latest Commitment of Traders report from the US gold futures market shows the "large absence of any fresh buying" agree analysts at Mitsui, the precious metals dealer.

But "we haven't ruled out a $1,000 print in April," they go on. "Indeed, the 20% decline in the global [futures, options and trust-fund] position over the last four weeks indicates ample room for investors to re-enter the market before we can begin to all it frothy again."

The biggest bullion banks in London today set the AM Gold Fix at $931.75 per ounce, up more than 2.7% from last Wednesday's low.

For French, German and Italian investors wanting to Buy Gold today, the AM Fix was set above €588 per ounce, its best Morning Fix so far this month.

"The forces that have propelled Gold for the past five years are intact, if not intensifying," said Citigroup analyst John Hill in a note Monday.

"Central-bank policy prescriptions for the credit crisis are uniformly re-flationary."

Inflation for US manufacturing businesses will be reported later today, and "a higher-than-expected PPI statistic would decrease the probability of further aggressive Fed easing on April 30th," according to Manqoba Madinane and Walter de Wet at Standard Bank in Johannesburg.

"That may put downward pressure on precious metals...but we still see near-term upside potential for the [Gold Market] in tightening liquidity conditions, as indicated by rising interbank lending rates that signal ongoing financial markets stress."

( Why do Interest Rates & Risk Matter to Gold ? Read on here... )

Fed governor Kevin Warsh – at 38, the youngest member of the Open Market Committee and previously an M&A specialist at Morgan Stanley and then economic advisor to the US president – spoke yesterday of "a striking decline in confidence in the financial architecture itself.

"Perhaps an analogue to banking systems without deposit insurance is appropriate," he told the Global Economic Policy Forum at NYU's School of Law. "Depositors withdraw funds if they believe others will act similarly.

Charting the boom in securitized debt investment, "the script was rewritten [in early 2008] so that product innovation flowed, but this time from the public authorities. [But] in my view, public liquidity is an imperfect substitute for private liquidity."

The Bank of England today injected £15 billion ($29.5bn) into the London money markets after the British prime minister, Gordon Brown, held an emergency breakfast meeting with commercial bank chiefs.

Three-month interbank lending rates were unchanged from Monday, however, at 5.93% – almost one per cent above the Bank of England's current overnight target.

The British Pound fell hard on the currency markets meantime – down 1.1% to the Dollar and reaching fresh record lows to the Euro – after official data showed consumer-price inflation holding flat at 2.5% year on year in March thanks to sharp discounting from furniture and kitchen retailers, plus a fall in the price of computer games.

Many economists then brought forward their forecast for the next Bank of England rate cut from June to May after the Royal Institution of Chartered Surveyors reported its worst survey of UK house prices since the RICS index began in 1978.

"Estate agents are still talking up the market to win [new] instructions," complains one surveyor in the affluent "stockbroker" commuter belt of Surrey, "[but] applicants are not taken in by asking prices. This practice will continue unless we see a reduction in the cost of borrowing."

Only 3% of the 285 professional surveyors interviewed saw a rise in their local house prices. Fully two-thirds reported a fall.

The US Dollar meanwhile held flat against the Euro and Japanese Yen, but the broad-based GSCI index of commodity prices rose 0.8% as soft commodities surged higher following US president George Bush's grant of $200 million in emergency food aid to poorer countries facing social unrest and food riots.

US rice futures today hit a new all-time high in response, standing more than twice above their level of last August – back when the Federal Reserve Began Slashing US Interest Rates .

"Asian rice prices have soared even more sharply since January," reports Bloomberg today, "as big importers rush to build up stocks on fears that supplies will become scarce as exporters clamp down on shipments."

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