Best of the Week
Most Popular
1. Stock Markets and the History Chart of the End of the World (With Presidential Cycles) - 28th Aug 20
2.Google, Apple, Amazon, Facebook... AI Tech Stocks Buying Levels and Valuations Q3 2020 - 31st Aug 20
3.The Inflation Mega-trend is Going Hyper! - 11th Sep 20
4.Is this the End of Capitalism? - 13th Sep 20
5.What's Driving Gold, Silver and What's Next? - 3rd Sep 20
6.QE4EVER! - 9th Sep 20
7.Gold Price Trend Forecast Analysis - Part1 - 7th Sep 20
8.The Fed May “Cause” The Next Stock Market Crash - 3rd Sep 20
9.Bitcoin Price Crash - You Will be Suprised What Happens Next - 7th Sep 20
10.NVIDIA Stock Price Soars on RTX 3000 Cornering the GPU Market for next 2 years! - 3rd Sep 20
Last 7 days
Ethereum EIP 1559 and Raven Coin - 21st Apr 21
Gold, USDX: The Board is Set, the Pieces are Moving - 21st Apr 21
World Economies Need to Find a Lot More COPPER! - 21st Apr 21
DogeCoin CRASH! Time to Start Mining BOODGIE Coin! Crypto Mania 2021 - 21st Apr 21
Pausing Stocks and Gold Fireworks - 21st Apr 21
Precious Metals and Miners Start of New Longer-Term Bullish Trend - P2 - 21st Apr 21
Looking For A Mortgage Broker? Here Is How To Hire One - 21st Apr 21
Amazon AMZN Stock PRIMEDAY SALE! Trend Analysis - 20th Apr 21
Stock Market Sentiment Speaks: You May Not Believe My 2021 Targets - 20th Apr 21
Stock Market Phase Two Projection - 20th Apr 21
Are Precious Metals & Miners Starting A New Longer-Term Bullish Trend? - 20th Apr 21
Inflation: First the Gain, Then the Pain… - 20th Apr 21
8 Stock Market Indicators in 1: Here's the Message of the Panic/Euphoria Model - 19th Apr 21
Gold - You Can Win a Battle, but Still Lose the War - 19th Apr 21
Will Interest Rates Rally Further Push Gold Price Down? - 19th Apr 21
Gold Fireworks Doubt the Official Inflation Story - 19th Apr 21
YuanPay Team Discuss The Process Of Crypto Diversification - 19th Apr 21
Central Banks May Ramp Up Gold Buying - 18th Apr 21
How to Get Rid of Driveway Weeds With Just WATER! 6 Months later NO Weeds, Ultimate Killer! - 18th Apr 21
State of the European Markets - DAX, FTSE, CAC, AEX, SMI, IBEX 35, S&P/MIB, Euro Stoxx 50, RTS - 18th Apr 21
Einvestment Fund: What You Need To Know About Investments - 18th Apr 21
Google Alphabet (GOOG) AI Deep Mind Stock Trend Analysis - 17th Apr 21
Stocks and Bonds Inflationary Slingshot - 17th Apr 21
Best Smartphone Selfie Stick Tripod Review by ATUMTEK Works with Samsung Galaxy and Iphone - 17th Apr 21
How to Give Budgie's First Bath | Easy Budgie Bathing and Water Training with Lettuce - 17th Apr 21
Record-breaking Decrease in New Passenger Vehicle Sale in Europe - 17th Apr 21
US Stocks Climb A “Wall Of Worry” To New Highs - 16th Apr 21
Gold’s Singular Role - 16th Apr 21
See what Anatomy of a Bursting Market Bubble looks like - 16th Apr 21
Many Stock Market Sectors Are Primed For Another Breakout Rally – Are You? - 16th Apr 21
What Skyrocketing US Home Prices Say About Inflation - 16th Apr 21
Still a Bullish Fever in Stocks? - 16th Apr 21
Trying to Buy Coinbase Stock on IPO Day - Institutional Investors Freeze out Retail Investors - 15th Apr 21
Stocks or Gold – Which Is in the Catbird Seat? - 15th Apr 21
Time For A Stock Market Melt-Up - 15th Apr 21
Stocks Bull Market Progression Now Shows Base Metal Strength - 15th Apr 21
AI Tech Stocks Buy Ratings, Levels and Valuations - 14th Apr 21
Easy 10% to 15% Overclock for 5600x, 5900x, 5950x Using AMD Ryzen Master Precision Boost Overdrive - 14th Apr 21
The Current Cannabis Sector Rally Is Pointing To Another Breakout - 14th Apr 21
U.S. Dollar Junk Bond Market The Easiest Money in History - 14th Apr 21
The SPY Is Nearing Resistance @ $410… What Is Next? - 14th Apr 21
The Curious Stock Market Staircase Rally - 14th Apr 21
Stocks are Heating Up - 14th Apr 21
Two Methods in Calculating For R&D Tax Credits - 14th Apr 21
Stock Market Minor Correction Due - 13th Apr 21
How to Feed Budgies Cucumbers - Best Vegetables Feeding for the First Time, Parakeet Care UK - 13th Apr 21
Biggest Inflation Threat in 40 Years Looms over Markets - 13th Apr 21
How to Get Rich with the Pareto Distribution - Tesco Example - 13th Apr 21
Litecoin and Bitcoin-Which Is Better? - 13th Apr 21
The Major Advantages Of Getting Your PhD Online - 12th Apr 21
Covid-19 Pandemic Current State for UK, US, Europe, Brazil Vaccinations vs Lockdown's Third Wave - 12th Apr 21
Why These Stock Market Indicators Should Grab Your Full Attention - 12th Apr 21
Rising Debt Means a Weaker US Dollar - 12th Apr 21
Another Gold Stocks Upleg - 12th Apr 21
AMD The ZEN Tech Stock - 12th Apr 21
Overclockers UK Build Quality - Why Glue Fan to CPU Heat sink Instead of Using Supplied Clips? - 12th Apr 21 -
What are the Key Capabilities You Should Look for in Fleet Management Software? - 12th Apr 21
What Is Bitcoin Gold? - 12th Apr 21
UK Covd-19 FREE Lateral Flow Self Testing Kits How Use for the First Time at Home - 10th Apr 21
NVIDIA Stock ARMED and Dangeorus! - 10th Apr 21

Market Oracle FREE Newsletter

FIRST ACCESS to Nadeem Walayat’s Analysis and Trend Forecasts

Gold Recovers Early Dip; China 's Copper Demand Doubles in 12 Months

Commodities / Metals & Mining Aug 22, 2007 - 10:30 AM GMT

By: Adrian_Ash

Commodities

SPOT GOLD PRICES recovered an overnight dip early Wednesday, regaining the previous night's US close after recording an AM Fix in London of $657.15 per ounce.

"The credit worries are not over and the [gold] market will not really have much clue what the true credit liquidity dynamics are for some time," says metals analyst Michael Jansen at J.P.Morgan.


"Most markets are hostage to ongoing uncertainities about credit liquidity...[but] physically the gold market's in very good shape. We see very strong demand from the jewelry sector in the Middle East ."

Comex gold futures also recovered an early dip by midday in London , with the Dec. '07 contract rising 80 cents to $667 per ounce as European blue-chip equities added 1.3%, led by mining stocks in London . BHP Billiton, reporting record second-half profits, said that demand for industrial metals remains "robust" despite the Chinese central bank raising its key interest rate four times this year so far.

To confirm the point, the Beijing customs office today reported that China 's imports of refined copper and copper alloys more than doubled in the first seven months of 2007 from the same period last year.

Mainland China 's Shanghai Composite index closed today 0.5% higher. Hong Kong stocks rose 2.8% on average. The Nikkei stock index finished flat, while gold futures traded in Tokyo for delivery in June '08 ended the day 0.4% lower – equal $661.48 per ounce.

"Spot gold is sitting right on good support at the 200-day moving average," says Phil Smith for Reuters India Technical today, "and also on very strong support on the trendline on the weekly chart."

These two points "have come together very nicely [at $655]," adds Smith. "Clearly this is technically a significant level for gold."

In the bond market, two-year US Treasuries fell for the first session in eight after Federal Reserve member Jeffrey Lacker said late Tuesday that the Fed is looking to avoid an emergency cut in US interest rates. ( Did you see what happened on Black Monday this week...? )

Lacker's comments came as RealtyTrac Inc. of California said that notices of repossession, default or auction were sent to 179,599 home-owners in the US last month, nearly twice the number sent in July '06. Interest-rate futures this morning still pointed to a reduction in the Fed Funds rate when the central bank's policy committee meets on Sept. 18th.

But the US Dollar held steady early in London , gaining half-a-Yen to ¥115.08 by midday and trading at $1.3488 per Euro in the currency markets. The Sterling price of gold rose back above £330 per ounce for British investors. French and German citizens wanting to buy gold today found it trading above €488.

"For the time being, the perception is that there could be more [gold] selling if further market jitters surface," reckonss Darren Heathcote of Investec Australia in Sydney. "What's moving the market is not gold specific, but more wider market implications."

Internal to the gold market, however, record buying by gold-mining companies has met with strong sales from central banks in Europe . Gold dehedging hit an all-time high between April and June, said the GFMS consultancy on Tuesday, as gold miners bought back 161 tonnes of the gold they had previously sold forward to "hedge" their exposure to falling prices in the late '90s.

The elimination of all outstanding hedge-book positions at Newmont and Lihir accounted for nearly half of the total dehedging. The remaining global hedge-book has now shrunk to 1,064 tonnes according to the GFMS report – but at the same time, gold sales by European central banks have increased rapidly.

After data from the Bank of Spain showed that it has sold 134 tonnes of gold so far this year, the Swiss National Bank said on Tuesday that it sold 34 tonnes of gold in July alone. That leaves 216 tonnes of Switzerland's gold still to sell by Sept. 2009 under the foreign-reserves "rebalancing" program announced by the SNB in June.

European central banks as a whole have now sold 396 tonnes of gold during this year, the third year of the Central Bank Gold Agreement, according to the European Central Bank in Frankfurt . The agreement sets a ceiling of 500 tonnes for the 12 months ending Sept. 26th.

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 2007

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