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 Short-term Tedhnical Damage

Commodities / Gold & Silver Nov 16, 2007 - 10:05 AM GMT

By: Gold_Investments

Commodities Gold
Gold was down $26.70 to $785.70 per ounce in New York yesterday and silver was down 57 cents to $14.42 per ounce. Gold has since traded sideways in Asia and European trading and is at $790.10 per ounce at 1200 GMT. Tentative dollar strength and oil weakness may have contributed to the sell off. Gold was also down in GBP and EUR but not by as much. It is trading at £387 GBP (from £392.80) and €541 EUR (down from €549.80).


Gold's close below $790 resulted in some technical damage and may result in gold challenging support at the 50 day moving average at $767. If that is breached support is at the psychological level of $750 and the 100 day moving average at $727. However, we continue to believe that gold is unlikely to fall below $750 per ounce given the increasing macroeconomic and systemic risk in the world. Also considerable geopolitical risk remains with a possible U.S. confrontation with Iran and considerable uncertainty in nuclear armed Pakistan. A sell off was expected and given the size of the recent move it is normal that there be a period of correction and consolidation.

• Given the very significant demand as outlined by the World Gold Council in their latest report and the marked decrease in supply globally, as outlined in the Daily Telegraph today ( A perfect storm for gold as mines left empty , The Telegraph - http://www.telegraph.co.uk /money/main.jhtml?xml=/money /2007/11/15/bcngold115.xml ), gold is likely to challenge its record high before the end of the year.

Gold production is falling in nearly all countries internationally, except for China, and production in the world's largest producer South Africa has fallen to its lowest level since 1932. Some analysts are now wondering whether we may have reached 'peak gold' in the same way as we may have reached peak oil - the point where production of oil or gold reaches its maximum point before falling into irreversible decline.
The Telegraph's Ambrose Evans Pritchard wrote that "The era of 'peak gold' has arrived." "Try as they might, miners cannot find enough ore at viable costs to replace their fast-depleting reserves, even if they dig miles into the centre of the earth. "Global mine supply is going to decrease at a much faster rate than people generally believe. Many of the new mines that people are anticipating will never come into production," he told the RBC Capital Markets gold conference in London."

• The FT reports ('FT: Long-term prospects for bullion continue to glisten') that Royal Bank of Canada believe that gold remains very attractive from a long term point of view. RBC says the gold market will sustain its positive momentum over the remainder of this decade, driven by favourable supply-and-demand fundamentals and concerns over the future global role of the dollar after its recent sell-off. RBC sees a likelihood of currency re-alignments if the dollar loses its position as the de facto anchor to which many countries in Asia, Latin America and the Middle East link their currencies.

"Increasing geopolitical risk combined with rising economic uncertainty should continue to provide incentives for investors to increase their exposure to gold as a safe haven," said Stephen Walker, director of global mining research at RBC Capital Markets.

• Bloomberg reports that 'Gold May 'Easily' Rise to $1,000, Marc Faber Says'. Gold may "easily'' rise to a record $1,000 an ounce next year as the dollar weakens and Asian central banks diversify their reserves, said Marc Faber, who advised investors to acquire the metal at the start of a six-year rally.

A "continued'' weakening of the U.S. currency may help gold climb above its all-time high of $850 traded in January 1980, said Faber, managing director of Marc Faber Ltd. and publisher of the Gloom, Boom & Doom Report. "That's baked in the cake in my opinion,'' he said today in an interview. "Gold is still relatively cheap. It hasn't risen as much as nickel, or oil.''

In an era of declining gold production and increasing investment and central bank demand, particularly in China and wider Asia, gold will likely reach its inflation adjusted high of some $2,200 per ounce in the next 3 to 5 years.

Forex and Gold
The dollar is largely flat against the EUR at 1.459 (from 1.462) but has strengthened further against GBP at 2.037 (from 2.045). This is not a function of dollar weakness rather of the weakness of the pound. As noted yesterday, the slowdown in the UK housing market and economy is likely to lead to interest rate cuts in the UK (despite record fuel and food prices and rising inflation).

Silver
Silver is trading at $14.50/51 at 1200 GMT.

PGMs
Platinum was trading at $1430/1436 (1200 GMT).
Spot palladium was trading at $366/372 an ounce (1200 GMT).

Oil
Light, sweet crude for December delivery rose to $94.06 per barrel. There are expectations that global crude supplies will remain tight despite a U.S. oil inventory report that showed a surprising build in domestic crude stockpiles and a slowing U.S. economy. Crude oil rose after Venezuela's oil minister said OPEC shouldn't increase production at its next meeting in December. Prices are set by the market and "OPEC can't do anything about the price,'' Rafael Ramirez told reporters before an OPEC heads of state summit in Riyadh this weekend.

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@goldinvestments.org
Web www.goldinvestments.org

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.

Fair Use Notice: This newsletter contains copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available in our efforts to advance understanding of issues of financial and economic significance. At all times we credit and attribute the copywrite owner and publication.
We believe this constitutes a 'fair use' of any such copyrighted material as provided for in Copyright Law. The material on this site is distributed without profit to those who have expressed a prior interest in receiving the included information for economic research purposes. If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission from the copyright owner.

Gold Investments 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