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
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
The Narrative About Gold is Changing Again - 2nd Dec 19
Stock Market Liquidity & Volume Diminish – What Next? - 2nd Dec 19
A Complete Guide To Finding The Best CFD Broker - 2nd Dec 19
See You On The Dark Side Of The Moon - 2nd Dec 19
Will Lib Dems Win Sheffield Hallam From Labour? General Election 2019 - 2nd Dec 19
Stock Market Where Are We?  - 1st Dec 19
Will Labour's Insane Manifesto Spending Plans Bankrupt Britain? - 1st Dec 19
Labour vs Tory Manifesto Debt Fuelled Voter Bribes Impact on UK General Election - 30th Nov 19
Growing Inequality Unrest Threatens Mining Industry - 30th Nov 19
Conspiracy Theories Are Killing This Nation - 30th Nov 19
How to Clip a Budgies / Parakeets Wings, Cut / Trim Bird's Flight Feathers - 30th Nov 19
Hidden Failure of SIFI Banks - 29th Nov 19
Use the “Ferrari Pattern” to Predictably Make 431% with IPOs - 29th Nov 19
Tax-Loss Selling Drives Down Gold and Silver Junior Stock Prices - 29th Nov 19
We Are on the Brink of the Second Great Depression - 29th Nov 19
How to Spot REAL Amazon Black Friday Bargains and Avoid FAKE Sales - 29th Nov 19

Market Oracle FREE Newsletter

UK House prices predicting general election result

Gold Reaches Four Week High as Investors Dump Dollars for Oil

Commodities / Gold & Silver Apr 17, 2008 - 09:05 AM GMT

By: Adrian_Ash

Commodities SPOT GOLD PRICES for physical delivery reached a four-week high Thursday morning in London , recording an AM Fix of $951.50 per ounce as investors and trade swapped the fast-fading US Dollar for anything and everything bar the Japanese Yen.


"Merrill Lynch is due to announce its financial results today," note Manqoba Madinane and Walter de Wet for Standard Bank in Johannesburg, "and the outcome will be important for investor sentiment in equity markets, as it will give further indication of the severity of the credit crunch.

"A negative result could depress equity markets. Due to possible asset rotation between equity markets and commodities, this could lay the foundation for more fund flows into metals.

"Therefore, we see strong upside potential for precious metals." ( What's Driving this Bull Market in Gold Prices? Find out here... )

Tokyo gold futures rose 2.2% on Thursday, reaching their highest level since March 19th at ¥3,131 per gram. Platinum traders pushed the white metal "limit up" to a five-week high of ¥6,610 per gram.

Base metals all rose at the London Metal Exchange, with copper and nickel futures gaining more than 3% this morning as crude oil broke new all-time records above $115 per barrel.

The Nikkei and Hang Seng stock markets both closed more than 1.6% higher as the Japanese was the only major currency not to gain vs. the Dollar.

In early London trade the Euro climbed to a fresh record above $1.5980 following a report from the European Central Bank that cited "prevailing upside risks to price stability [i.e. inflation] over the medium term in a context of continuing very vigorous Money and Credit Growth ."

This fresh surge in the single currency capped the Gold Price in Euros at a three-week high just below €594 per ounce – almost 9% beneath the record high of March 17th and 6% above the subsequent low of €561.

For US gold investors "the $940 level should now act as good support," says today's Gold Market note from Mitsui in London , "with both the 30- and 50-day moving averages coming in at this level."

The precious metals dealer sets a short-term target for gold and silver at the recent highs of late March ($954 and $18.62 respectively). But "given the recent volatility it would be a surprise to see a smooth run higher."

Volatility in world Gold Prices continues to deter Indian gold buyers, according to Reuters today. The world's hungriest market for gold jewelry saw a fall in demand on Thursday after the local price moved back above 12,000 Rupees per 10 grams – a key level, says one bullion wholesaler in Hyderabad .

The spring wedding season is forcing Indian consumers to Buy Gold on the dips, however. The Akshaya Thrithiya festival of May 7th – the third most auspicious day in the Hindu calendar – is also forcing jewelers to re-stock their inventory.

Meantime in the Arab emirate of Dubai – which has the highest concentration of jewelry shops in the world – "the Gold Market will get quieter again if prices remain volatile," says a local trader to the Economic Times of India , "especially if gold crosses the $1,000 mark."

"Because prices dropped sharply in a short time [late last month], many buyers who took a wait-and-see-attitude thought it was good to up their purchases while prices were lower."

Comparing the recent 16% plunge in world Gold Prices with the 50% slump seen after the 28-year peak of Jan. 1980, "the latest correction appears to more closely echo the spring of 2006," says John Hill, the long-term gold bull at Citigroup.

"It was six months before fabrication demand [including jewelry] returned and 16 months until gold managed to regain the prior peak."

But longer-term, Gold has risen four-fold this decade thanks to "wealth creation in the Indian middle class, liberalization in China, and petrodollar flows from Russia and the Middle East," Hill added in a new report this week.

"Given intensifying political and economic tensions with the United State , there is no reason to believe these buyers will aver 'No more'."

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