Best of the Week
Most Popular
1. Gold vs Cash in a Financial Crisis - Richard_Mills
2.Current Stock Market Rally Similarities To 1999 - Chris_Vermeulen
3.America See You On The Dark Side Of The Moon - Part2 - James_Quinn
4.Stock Market Trend Forecast Outlook for 2020 - Nadeem_Walayat
5.Who Said Stock Market Traders and Investor are Emotional Right Now? - Chris_Vermeulen
6.Gold Upswing and Lessons from Gold Tops - P_Radomski_CFA
7.Economic Tribulation is Coming, and Here is Why - Michael_Pento
8.What to Expect in Our Next Recession/Depression? - Raymond_Matison
9.The Fed Celebrates While Americans Drown in Financial Despair - John_Mauldin
10.Hi-yo Silver Away! - Richard_Mills
Last 7 days
Silver Springboards Higher – What’s Next? - 26th May 20
Stock Market Key Resistance Breakout Is Where the Rubber Meets the Road - 26th May 20
5 Ways To Amp Up Your CFD Trading Today - 26th May 20
The Anatomy of a Gold Stock Bull Market - 26th May 20
Stock Market Critical Price Level Could Soon Prompt A Big Move - 25th May 20
Will Powell Decouple Gold from the Stock Market? - 25th May 20
How Muslims Celebrated EID in Lockdown Britain 2020 - UK - 25th May 20
Stock Market Topping Behavior - 24th May 20
Fed Action Accelerates Boom-Bust Cycle; Not A Virus Crisis - 23rd May 20
Gold Silver Miners and Stocks (after a quick drop) Ready to Explode - 23rd May 20
3 Ways to Prepare Financially for Retirement - 23rd May 20
4 Essential Car Trade-In Tips To Get The Best Value - 23rd May 20
Budgie Heaven at Bird Land - 23rd May 20
China’s ‘Two Sessions’ herald Rebound of Economy - 22nd May 20
Signs Of Long Term Devaluation US Real Estate - 22nd May 20
Reading the Tea Leaves of Gold’s Upcoming Move - 22nd May 20
Gold, Silver, Mining Stocks Teeter On The Brink Of A Breakout - 21st May 20
Another Bank Bailout Under Cover of a Virus - 21st May 20
Do No Credit Check Loans Online Instant Approval Options Actually Exist? - 21st May 20
An Eye-Opening Perspective: Emerging Markets and Epidemics - 21st May 20
US Housing Market Covid-19 Crisis - 21st May 20
The Coronavirus Just Hit the “Fast-Forward” Button on These Three Industries - 21st May 20
AMD Zen 3 Ryzen 9 4950x Intel Destroying 24 core 48 thread Processor? - 21st May 20
Dow Stock Market Trend Analysis and Forecast - 20th May 20
The Credit Markets Gave Their Nod to the S&P 500 Upswing - 20th May 20
Where to get proper HGH treatment in USA - 20th May 20
Silver Is Ensured A Prosperous 2020 Thanks To The Fed - 20th May 20
It’s Not Only Palladium That You Better Listen To - 20th May 20
DJIA Stock Market Technical Trend Analysis - 19th May 20
US Real Estate Showing Signs Of Covid19 Collateral Damage - 19th May 20
Gold Stocks Fundamental Indicators - 19th May 20
Why This Wave is Usually a Market Downturn's Most Wicked - 19th May 20
Gold Mining Stocks Flip from Losses to 5x Leveraged Gains! - 19th May 20
Silver Price Begins To Accelerate Higher Faster Than Gold - 19th May 20
Gold Will Soar Soon; World Now Faces 'Monetary Armageddon' - 19th May 20
Gold Mining Stocks Fundamentals - 18th May 20
Why the Largest Cyberattack in History Will Happen Within Six Months - 18th May 20
New AMD Ryzen 4900x and 4950x Zen3 4th Gen Processors Clock Speed and Cores Specs - 18th May 20
Learn How to Play the Violin, Kids Activities and Learning During Lockdown - 18th May 20
The Great Economy Reopening Gamble - 17th May 20
Powell Sends a Message With Love for Gold - 17th May 20
An Economic Renaissance Emerges – Stock Market Look Out Below - 17th May 20
Learn more about the UK Casino Self-exclusion - 17th May 20
Will Stocks Lead the Way Lower for Gold Miners? - 15th May 20
Are Small-Cap Stocks (Russell 2k) Headed For A Double Dip? - 15th May 20
Coronavirus Will Wipe Out These Three Industries for Good - 15th May 20
Gold and Silver: As We Go from Deflation to Hyperinflation - 15th May 20

Market Oracle FREE Newsletter

Coronavirus-stocks-bear-market-2020-analysis

Gold Tumbles in Quiet Start to 2009

Commodities / Gold & Silver 2009 Jan 02, 2009 - 07:32 AM GMT

By: Adrian_Ash

Commodities THE SPOT PRICE of wholesale gold bullion slipped into the first, quiet session of 2009 trading on Friday, recording a London AM Gold Fix of $869.75 an ounce – some 3.4% above the start of 2008 for Dollar investors.


The Gold Price in Sterling held just shy of £600 an ounce, higher by more than 40% from this time last year.

French, German and Italian buyers saw the AM Fix set at €623.65 – up almost 9% from the first session of 2008.

"While Gold looks strong at the moment, it's important to keep in mind that the world's largest consumer of gold – India – has not been buying," notes the precious metals team at Mitsui in London today.

The Bombay Bullion Association said Thursday that total Indian gold imports sank by 81% last month from the same period in 2007.

"For Gold to continue higher, therefore, a significant amount of weight will be placed on the investors," says Mitsui. "With exchange positions down over 50% from last February's levels, one would think that there is room for some investors to add gold to their portfolios."

Latest data from the US Gold Futures market showed hedge funds & other "large speculators" growing their bullish bets to a 3-month record in the week to Dec. 22nd. As a proportion of all speculative trades, the bullish ratio rose to a 10-month high of 91%.

But overall, the outstanding number of gold futures and options contracts remained low – down by more than 45% from the record peak of Jan. 2008.

Meantime on the currency market today, light volume forced a jump in volatility, with the Euro gaining and then dumping 4¢ to the Dollar. The Japanese Yen fell to a 3-week low of ¥91.40 per Dollar.

Tokyo remained closed for business, and won't re-open until Tuesday. European stock markets added 2% on average in thin trade, while government bond prices fell.

After the US reported a new record low for Consumer Confidence on Wednesday, new data released in London today showed UK house prices falling 16% for 2008 as a whole on average.

The number of new mortgage approvals fell to 27,000 in Dec. – a new three-decade low. Money supply growth continued to leap, however, up more than 16.5% year-on-year as the Bank of England pumped money into the banking system.

Europe's Purchasing Managers Index (PMI) for the manufacturing sector showed a new record low today, down to 33.9 for Dec. from the previous month's reading of 35.6.

Looking ahead to Gold in 2009 , "The US Federal Reserve has publicly stated they're going to print as many dollars as necessary to prevent the system from melting down," says Hans Goetti, chief investment officer in Singapore for LGT Bank of Lichtenstein, speaking to Bloomberg.

"For me the conclusion is clear: if you want to keep your purchasing power you have to be in something solid like gold."

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