Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
Dow Stock Market Trend Forecast Into Mid 2022 - 4th Dec 21
INVESTING LESSON - Give your Portfolio Some Breathing Space - 4th Dec 21
Don’t Get Yourself Into a Bull Trap With Gold - 4th Dec 21
GOLD HAS LOTS OF POTENTIAL DOWNSIDE - 4th Dec 21
4 Tips To Help You Take Better Care Of Your Personal Finances- 4th Dec 21
What Is A Golden Cross Pattern In Trading? - 4th Dec 21
Bitcoin Price TRIGGER for Accumulating Into Alt Coins for 2022 Price Explosion - Part 2 - 3rd Dec 21
Stock Market Major Turning Point Taking Place - 3rd Dec 21
The Masters of the Universe and Gold - 3rd Dec 21
This simple Stock Market mindset shift could help you make millions - 3rd Dec 21
Will the Glasgow Summit (COP26) Affect Energy Prices? - 3rd Dec 21
Peloton 35% CRASH a Lesson of What Happens When One Over Pays for a Loss Making Growth Stock - 1st Dec 21
Stock Market Sentiment Speaks: I Fear For Retirees For The Next 20 Years - 1st Dec 21 t
Will the Anointed Finanical Experts Get It Wrong Again? - 1st Dec 21
Main Differences Between the UK and Canadian Gaming Markets - 1st Dec 21
Bitcoin Price TRIGGER for Accumulating Into Alt Coins for 2022 Price Explosion - 30th Nov 21
Omicron Covid Wave 4 Impact on Financial Markets - 30th Nov 21
Can You Hear It? That’s the Crowd Booing Gold’s Downturn - 30th Nov 21
Economic and Market Impacts of Omicron Strain Covid 4th Wave - 30th Nov 21
Stock Market Historical Trends Suggest A Strengthening Bullish Trend In December - 30th Nov 21
Crypto Market Analysis: What Trading Will Look Like in 2022 for Novice and Veteran Traders? - 30th Nov 21
Best Stocks for Investing to Profit form the Metaverse and Get Rich - 29th Nov 21
Should You Invest In Real Estate In 2021? - 29th Nov 21
Silver Long-term Trend Analysis - 28th Nov 21
Silver Mining Stocks Fundamentals - 28th Nov 21
Crude Oil Didn’t Like Thanksgiving Turkey This Year - 28th Nov 21
Sheffield First Snow Winter 2021 - Snowballs and Snowmen Fun - 28th Nov 21
Stock Market Investing LESSON - Buying Value - 27th Nov 21
Corsair MP600 NVME M.2 SSD 66% Performance Loss After 6 Months of Use - Benchmark Tests - 27th Nov 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Gold Ignored and Still Dismissed by U.S. Media

Commodities / Gold and Silver 2010 Sep 02, 2010 - 08:35 AM GMT

By: Adrian_Ash

Commodities

THE PRICE OF GOLD rose back above $1250 an ounce for the second time this week – and the sixth time since May – on Thursday morning in London, as government bonds ticked lower together with energy prices.

Soft commodities rose, as did base metals and platinum. Silver prices touched a new 16-week high at $19.57 an ounce.


In the US, an article from Forbes magazine highlighting "Six Ways Retirees Can Beat Inflation" today does not mention gold investing.

"Gold has doubled since 2006," adds a personal-finance video at Yahoo.com, sponsored by the Fidelity fund group. "This train left the station a long time ago.

"So before you pour your savings into gold, be careful...A lot of the money's already been made."

Asian stock markets meantime closed Thursday 1.5% higher, but European shares stalled after Wall Street closed last night with its fourth-best one-day gain of 2010-to-date on what one London analyst called a "rather selective" reading of Wednesday's global economic data.

UK house prices today showed their second month-on-month drop in a row, while British manufacturing also contracted.

Swiss GDP growth jumped however to 3.4% annually, and the 16-nation Eurozone also grew faster than expected, with GDP rising by 1.9% year-on-year to end-June.

Inflation in Eurozone factory-input prices jumped from 3.0% to 4.0% per year in July.

Today the European Central Bank voted to keep its key interest rate on hold at 1.0% for the 16th month running.

Sterling and the Euro both fell vs. the Dollar, nudging the price of gold bullion up to £812 an ounce and €31,380 per kilo respectively.

"The maintenance of easy monetary policies and the likely reintroduction of quantitative easing policies provide the rationale for stable if not higher gold prices," says London market-maker HSBC in a note today.

Reviewing interest rates outside the US, Eurozone, Japan and UK, "Many policymakers seem to have been surprised by the strength of growth in Q2, but are also somewhat skeptical that the strong pace can continue," says Standard Bank's chief currency strategist Steve Barrow.

The Reserve Bank of Australia – where GDP growth has jumped to a 3-year high – last raised its key lending rate in May at 4.50%.

Sweden's Riksbank today raised its lending rate to 0.75%, saying that GDP growth will improve and labor demand look "substantially" better.

Over in India on Wednesday – where GDP growth for 2010 is pegged at 8.2% by Goldman Sachs' analysts – local gold prices reached new record highs above 19,230 Rupees per 10 grams, The Asian Age reports.

"Apart from bad economic news globally, a weak Rupee is also pushing up prices in India" – home to the world's hungriest gold-consumer market – the newspaper says.

Going into the traditionally strong autumn gold-buying season, "Gold consumption is expected to be strong in India this year," says Kuljeet Kataria at Motilal Oswal Securities in Mumbai, "because the monsoon has been good.

"That should lead to higher rural incomes – places where there is no [formal] banking."

"This demand from emerging countries – if it's really going to stop and fall off a cliff, it's going to be because of economic developments, not high prices," says US Global Investors' Frank Holmes, speaking last night to South Africa's MineWeb.

Worldwide, "Gold is basically looked and perceived more and more as a safe-haven investment," he adds. "The US, Western Europe and Japan are close to buckling under the weight of their own sovereign debt issues, and government budget deficits remain large and persistent and, as a result, the major paper currencies are low."

The world's seven most populous countries also have the strongest "emotional attachment" to buying gold, notes Holmes.

"The gold price could go up further...going into the Labor Day weekend," reckons Jeffrey Christian of New York's CPM consultancy, speaking to TheStreet.com and comparing this year's action "to some extent to August of 2007, when gold didn't really take an August pause."

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 2010

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.


© 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