Gold Driven Lower by US Dollar Rally

By: Mark_OByrne

Gold finished trading in New York yesterday at $869.40, down $5.00 and silver was down  25  cents to $16.21 . Gold  remained largely unchanged in Asian  trading but has fallen further in  early European trading and is trading at $864.60/864.60 per ounce ( 0943 GMT).

The continuing rally in the dollar in recent days (has risen as high as EUR 1.5142 this morning) and the recent sharp fall in commodity and oil prices has seen gold come under further pressure and it looks set to test the next level of support at $845-$850.

However, given the financial and economic news has been as bad if not worse than that out of the Eurozone, the dollar rally is likely to be another dead cat bounce. Yesterday's US data was not encouraging with July sales and jobless numbers both disappointing.

Further dollar weakness is more than likely in the coming months as the US government looks set to engage in a series of massive bailouts of banks, brokerages and possibly even car makers all of which face the possibility of insolvency. 

As expected, gold has once again experienced weakness in the summer doldrums but a seasonal low is likely in the coming days and the length of the consolidation since March should see a very sharp rally in gold's favoured Autumn months (as was seen last year). 



Gold and Silver
Gold is trading at $8 64 /8 65 per ounce ( 0940 GMT).
Silver is trading at $1 5.8 1/1 5.8 5 per ounce ( 0940  GMT).

PGMs
Platinum is trading at $15 7 5/1 580 per ounce ( 0940  GMT).
Palladium is trading at $353/358 per ounce ( 0940  GMT).

By Mark O'Byrne, Executive Director

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.

© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.