Most Popular
1. Banking Crisis is Stocks Bull Market Buying Opportunity - Nadeem_Walayat
2.The Crypto Signal for the Precious Metals Market - P_Radomski_CFA
3. One Possible Outcome to a New World Order - Raymond_Matison
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
5. Apple AAPL Stock Trend and Earnings Analysis - Nadeem_Walayat
6.AI, Stocks, and Gold Stocks – Connected After All - P_Radomski_CFA
7.Stock Market CHEAT SHEET - - Nadeem_Walayat
8.US Debt Ceiling Crisis Smoke and Mirrors Circus - Nadeem_Walayat
9.Silver Price May Explode - Avi_Gilburt
10.More US Banks Could Collapse -- A Lot More- EWI
Last 7 days
Stock Market Volatility (VIX) - 25th Mar 24
Stock Market Investor Sentiment - 25th Mar 24
The Federal Reserve Didn't Do Anything But It Had Plenty to Say - 25th Mar 24
Stock Market Breadth - 24th Mar 24
Stock Market Margin Debt Indicator - 24th Mar 24
It’s Easy to Scream Stocks Bubble! - 24th Mar 24
Stocks: What to Make of All This Insider Selling- 24th Mar 24
Money Supply Continues To Fall, Economy Worsens – Investors Don’t Care - 24th Mar 24
Get an Edge in the Crypto Market with Order Flow - 24th Mar 24
US Presidential Election Cycle and Recessions - 18th Mar 24
US Recession Already Happened in 2022! - 18th Mar 24
AI can now remember everything you say - 18th Mar 24
Bitcoin Crypto Mania 2024 - MicroStrategy MSTR Blow off Top! - 14th Mar 24
Bitcoin Gravy Train Trend Forecast 2024 - 11th Mar 24
Gold and the Long-Term Inflation Cycle - 11th Mar 24
Fed’s Next Intertest Rate Move might not align with popular consensus - 11th Mar 24
Two Reasons The Fed Manipulates Interest Rates - 11th Mar 24
US Dollar Trend 2024 - 9th Mar 2024
The Bond Trade and Interest Rates - 9th Mar 2024
Investors Don’t Believe the Gold Rally, Still Prefer General Stocks - 9th Mar 2024
Paper Gold Vs. Real Gold: It's Important to Know the Difference - 9th Mar 2024
Stocks: What This "Record Extreme" Indicator May Be Signaling - 9th Mar 2024
My 3 Favorite Trade Setups - Elliott Wave Course - 9th Mar 2024
Bitcoin Crypto Bubble Mania! - 4th Mar 2024
US Interest Rates - When WIll the Fed Pivot - 1st Mar 2024
S&P Stock Market Real Earnings Yield - 29th Feb 2024
US Unemployment is a Fake Statistic - 29th Feb 2024
U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - 29th Feb 2024
What a Breakdown in Silver Mining Stocks! What an Opportunity! - 29th Feb 2024
Why AI will Soon become SA - Synthetic Intelligence - The Machine Learning Megatrend - 29th Feb 2024
Keep Calm and Carry on Buying Quantum AI Tech Stocks - 19th Feb 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Gold Cuts 2009 Gains to 30% as Eurozone Hits Deflation

Commodities / Gold & Silver 2009 Dec 30, 2009 - 04:29 AM GMT

By: Adrian_Ash

Commodities

THE WHOLESALE PRICE of investment-grade gold dropped to a 3-session low at the start of London dealing on Wednesday, cutting its 2009 gains vs. the Dollar to 30% and losing 2.1% for the week so far.

World stock markets fell together with government bonds. The US Dollar ticked higher on the forex market.


Crude oil held near a 77% gain for the year above $79 per barrel.

Copper and zinc traded at the London Metal Exchange ticked higher from Tuesday's 15-month closing highs.

"With [the Tocom gold futures exchange in] Japan out today and the holidays upon us, trading has been thin overnight and the market remains vulnerable to sharp moves," says a note from precious metals dealer Mitsui.

"The whole key to the gold market is the Dollar," reckons Marty McNeill, a trader at R.F.Lafferty Inc. in New York.

"We could have some strength in the Dollar going into the New Year."

"Between Christmas and year-end, the volume in the market shrinks rather drastically," says Afshin Nabavi, head trader at MKS, the Swiss refinery group, also speaking to the Wall Street Journal.

"Because of scale-down buying by traders looking to sell onto jewelers, the market is probably not as low as it could be."

The China Daily reports a "rush" to buy gold as the Chinese New Year shopping season begins, with major department stores slashing jewelry prices by 3% to launch their promotions.

China National Gold, a major retailer, claims to have doubled its sales last weekend.

The Chinese year of the Tiger starts on Feb. 18th. Chinese households are now the largest single market for privately-bought gold, overtaking India decisively in 2009.

Meantime in Tokyo on Wednesday, the Nikkei stock index lost 0.8% on its last trading day of 2009, ending the year higher by one-half from March's quarter-century lows as shares in Japan Airlines plunged to a record low on fears the failing carrier is about go bankrupt.

Today the 16-nation Eurozone reported deflation in its money supply, with the broad M3 measure contracting by 0.2% last month from Nov. 2008.

The European Central Bank's target rate – set when the Euro was launched a decade ago – was for 4.5% money-supply growth year on year.

M3 growth in the 350-million citizen currency union hit a 30-year peak of 12.3% annually at the end of 2007.

German Bunds fell in price, however, driving yields up to new 2009 highs above 3.37%.

Ten-year UK gilt yields rose above 4.09% – a fresh 2009 high – as the Pound fell hard to new 11-week lows beneath $1.5860 on the currency market.

The Euro gave back Tuesday's brief rally above $1.4400, trading in a tight range around $1.4330 and holding the gold price in Euros above €760 an ounce.

British investors looking to buy gold today saw prices in the wholesale professional market dip to £688 an ounce – also more than 24% higher for 2009.

By Adrian Ash
BullionVault.com

Gold price chart, no delay | Free Report: 5 Myths of the Gold Market
Formerly 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 2009

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

© 2005-2022 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