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
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
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

Market Oracle FREE Newsletter

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

Gold Volatile Monday Trading

Commodities / Gold & Silver Apr 21, 2008 - 09:39 AM GMT

By: Mark_OByrne

Commodities In volatile and choppy indeterminate trade in Asia and Europe gold has traded in tight range between $915 and $923. The London AM Gold Fix at 1030 GMT this morning was at $915.75, £461.64 and €577.40 (from $942.25, £472.19 and €592.31 Friday).


After a very strong week gold was taken down significantly on Friday, giving up the gains seen Monday to Thursday. Gold was down 1.28% last week while silver was up 0.68%. The lower weekly close in gold was bearish from a technical point of view but the fact that silver and the gold mining indexes were stronger and had higher weekly closes (HUI up 3.75% and XAU up 2.9%) suggests that gold's weakness may again prove temporary.

With oil and the dollar remaining near record highs and record lows respectively and with physical demand internationally and particularly in Asia and China remaining strong (see below), gold is unlikely to fall below $900 per ounce. Indeed resistance seen at last week's highs of $950 will likely again be challenged sooner than most analysts anticipate.

Review of Last Week

Risk appetite increased in the mistaken notion that the worst of the global financial and economic crisis has passed. Stock markets and the dollar were up strongly on Friday resulting in strongly weekly gains in stock markets (Dow +4.25%; Nasdaq +4.92% and S&P +4.31) and a marginal weekly advance in the dollar ( US Dollar Index +0.28%). The biggest movements came in the energy (Oil +5.95%; g + May Natural Gas surged 7.5% (up 42% y-t-d) and May Gasoline jumped 4.2% to a new record (up 21% y-t-d) ) and bond markets (10 Year US Bond + 7.84% to 3.743%) and the Long-bond yields gained 20 bps to 4.50%.

Perhaps the bond vigilantes have awoken from their long slumber and realizing that with food and energy prices surging inflation is a real threat to low yielding bonds. Any retreat from the bond market by the bond market vigilantes and by the U.S. huge creditors could see a return to normality in the bond markets and higher interest rates. It is hard to see how an already struggling US housing market and economy could cope with higher rates but unfortunately they seem inevitable.
21-Apr-08 Last 1 Month YTD 1 Year 5 Year
Gold $     
919.40
0.03%
10.33%
32.97%
175.68%
Silver      
17.83
3.84%
20.71%
28.27%
293.59%
Oil     
117.05
14.93%
18.03%
82.57%
279.17%
FTSE      
6,041
9.92%
-6.12%
-6.87%
55.32%
Nikkei     
13,697
9.72%
-10.52%
-21.52%
71.87%
S&P 500      
1,390
4.57%
-5.31%
-6.33%
55.86%
ISEQ      
6,217
0.94%
-10.34%
-35.93%
#N/A
EUR/USD     
1.5901
3.04%
9.02%
17.01%
46.47%
© 2008 GoldandSilverInvestments.com


Data this Week

Key U.S. data for release this week focus on the housing market, with existing and new home sales for March scheduled. Other US data of note include durable goods for March and the final Michigan consumer sentiment report for April and these will set the tone for markets.

Market Intervention to Support Dollar
While the dollar index was up marginally for the week, the dollar had a mixed performance versus various currencies. The dollar index rallied 0.3%, ending the week at 72.01.  For the week on the upside, the Canadian dollar increased 1.5%, the South African rand 1.2%, the Brazilian real 1.1%, the British pound 1.0%, and the Australian dollar 0.8%. On the downside, the Japanese yen declined 2.5%, the Swiss franc 1.9%, the South Korean won 1.7%, and the Norwegian krone 0.5%.

Friday's sharp movements in the currency and commodity markets were unusual and there may have been official intervention in order to prop up the dollar. There was no ostensible reason for the sharp increase in the value of the dollar versus the euro and gold's sharp sell off on Friday and it would be naïve to completely discount the possibility of official intervention in these markets to support the dollar. The G7 in their recent communiqué hinted at intervention, as has Treasury Secretary Henry Paulson.

Paulson, ex CEO of Goldman Sachs, recently  said that the U.S. administration has a "strong dollar" policy and declined to speculate on potential intervention in support of the falling greenback.  Asked about possible U.S. intervention in the foreign-exchange markets, where the dollar has depreciated rapidly amid a credit squeeze that is roiling financial markets, Paulson said: "I'm not going to speculate on hypotheticals and intervention."

Paulson's comments came after he attended a meeting with President George W. Bush and the president's Working Group on Financial Markets (also known as the Plunge Protection Team (PPT) ) at the White House. The meeting of the working group also includes the chairmen of the Federal Reserve, the Securities and Exchange Commission, and the Commodity Futures Trading Commission. The President's Working Group on Financial Markets in the US was formed in 1988 to enhance “the integrity, efficiency, orderliness, and competitiveness” of US financial markets and to maintain “investor confidence”.

Chinese Gold Demand Increasing Significantly
Figures from the World Gold Council showed sales of gold jewellery in China hit a record high of 302.2 tonnes in 2007, up 34 percent on the previous year. China has now overtaken the United States to become the world's second largest buyer of gold jewellery after India.

But behind the remarkable growth lies a deep Chinese traditional appreciation of the precious metal as a hedge against social and economic risks.

"I'm more confident in gold -- we've been buying it for so many years in the past anyway," said 78-year-old Wu Peifen, who was selecting a wedding gift for her grandson at Beijing's Wangfujing Department Store.

High inflation and a 41-percent slump in the domestic stock market this year have added further momentum to China's drive to buy gold.

http://www.research.gold.org/assets/image/research/img/charts/dailyshort_1.gif

Importantly, Chinese consumers are not deterred by rising prices, experts said. Rather, they increasingly view gold as not only a means to protect wealth but also as an efficient part of their investment portfolio. "In fact, higher gold prices helped to stimulate investment purchases of the metal... as consumers were attracted by the strong returns generated by the metal," the World Gold Council said in a recent report about the China market.

It said investment demand for gold at the retail level amounted to 23.9 tonnes in 2007, a rise of 60 percent compared with 2006.

Support and Resistance
Support for gold is at $910 and $905 and strong support is at $880. Resistance is now last week's high at $950.


Silver

Silver is trading at $17.85/17.90 at 1215 GMT.

PGMs

Platinum is trading at $2060/2070 (1215 GMT).
Palladium is trading at $455/460per ounce (1215  GMT). 

By Mark O'Byrne, Executive Director

Gold Investments
63 Fitzwilliam Square
Dublin 2
Ireland
Ph +353 1 6325010
Fax  +353 1 6619664
Email info@gold.ie
Web www.gold.ie
Gold Investments
Tower 42, Level 7
25 Old Broad Street
London
EC2N 1HN
United Kingdom
Ph +44 (0) 207 0604653
Fax +44 (0) 207 8770708
Email info@www.goldassets.co.uk
Web www.goldassets.co.uk

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 www.financialregulator.ie 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 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