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
Gold, Silver & HUI Stocks Big Pictures - 28th Sep 20
It’s Time to Dump Argentina’s Peso - 28th Sep 20
Gold Stocks Seasonal Plunge - 28th Sep 20
Why Did Precious Metals Get Clobbered Last Week? - 28th Sep 20
Is The Stock Market Dow Transportation Index Setting up a Topping Pattern? - 28th Sep 20
Gold Price Setting Up Just Like Before COVID-19 Breakdown – Get Ready! - 27th Sep 20
UK Coronavirus 2nd Wave SuperMarkets Panic Buying 2.0 Toilet Paper , Hand Sanitisers, Wipes... - 27th Sep 20
Gold, Dollar and Rates: A Correlated Story - 27th Sep 20
WARNING RTX 3080 AIB FLAWED Card's, Cheap Capacitor Arrays Prone to Failing Under Load! - 27th Sep 20
Boris Johnson Hits Coronavirus Panic Button Again, UK Accelerting Covid-19 Second Wave - 25th Sep 20
Precious Metals Trading Range Doing It’s Job to Confound Bulls and Bears Alike - 25th Sep 20
Gold and Silver Are Still Locked and Loaded… Don't be Out of Ammo - 25th Sep 20
Throwing the golden baby out with the covid bath water - Gold Wins - 25th Sep 20
A Look at the Perilous Psychology of Financial Market Bubbles - 25th Sep 20
Corona Strikes Back In Europe. Will It Boost Gold? - 25th Sep 20
How to Boost the Value of Your Home - 25th Sep 20
Key Time For Stock Markets: Bears Step Up or V-Shaped Bounce - 24th Sep 20
Five ways to recover the day after a good workout - 24th Sep 20
Global Stock Markets Break Hard To The Downside – Watch Support Levels - 23rd Sep 20
Beware of These Faulty “Inflation Protected” Investments - 23rd Sep 20
What’s Behind Dollar USDX Breakout? - 23rd Sep 20
Still More Room To Stock Market Downside In The Coming Weeks - 23rd Sep 20
Platinum And Palladium Set To Surge As Gold Breaks Higher - 23rd Sep 20
Key Gold Ratios to Other Markets - 23rd Sep 20
Watch Before Upgrading / Buying RTX 3000, RDNA2 - CPU vs GPU Bottlenecks - 23rd Sep 20
Online Elliott Wave Markets Trading Course Worth $129 for FREE! - 22nd Sep 20
Gold Price Overboughtness Risk - 22nd Sep 20
Central Banking Cartel Promises ZIRP Until at Least 2023 - 22nd Sep 20
Stock Market Correction Approaching Initial Objective - 22nd Sep 20
Silver Bulls Will Be Handsomely Rewarded - 21st Sep 20
Fed Will Not Hike Rates For Years. Gold Should Like It - 21st Sep 20
US Financial Market Forecasts and Elliott Wave Analysis Resources - 21st Sep 20
How to Avoid Currency Exchange Risk during COVID - 21st Sep 20
Crude Oil – A Slight Move Higher Has Not Reversed The Bearish Trend - 20th Sep 20
Do This Instead Of Trying To Find The “Next Amazon” - 20th Sep 20
5 Significant Benefits of the MT4 Trading Platform for Forex Traders - 20th Sep 20
A Warning of Economic Collapse - 20th Sep 20
The Connection Between Stocks and the Economy is not What Most Investors Think - 19th Sep 20
A Virus So Deadly, The Government Has to Test You to See If You Have It - 19th Sep 20
Will Lagarde and Mnuchin Push Gold Higher? - 19th Sep 20
RTX 3080 Mania, Ebay Scalpers Crazy Prices £62,000 Trollers Insane Bids for a £649 GPU! - 19th Sep 20
A Greater Economic Depression For The 21st Century - 19th Sep 20
The United Floor in Stocks - 19th Sep 20
Mobile Gaming Market Trends And The Expected Future Developments - 19th Sep 20
The S&P 500 appears ready to correct, and that is a good thing - 18th Sep 20
It’s Go Time for Gold Price! Next Stop $2,250 - 18th Sep 20
Forget AMD RDNA2 and Buy Nvidia RTX 3080 FE GPU's NOW Before Price - 18th Sep 20
Best Back to School / University Black Face Masks Quick and Easy from Amazon - 18th Sep 20
3 Types of Loans to Buy an Existing Business - 18th Sep 20
How to tell Budgie Gender, Male or Female Sex for Young and Mature Parakeets - 18th Sep 20
Fasten Your Seatbelts Stock Market Make Or Break – Big Trends Ahead - 17th Sep 20
Peak Financialism And Post-Capitalist Economics - 17th Sep 20
Challenges of Working from Home - 17th Sep 20
Sheffield Heading for Coronavirus Lockdown as Covid Deaths Pass 432 - 17th Sep 20
What Does this Valuable Gold Miners Indicator Say Now? - 16th Sep 20
President Trump and Crimes Against Humanity - 16th Sep 20
Slow Economic Recovery from CoronaVirus Unlikely to Impede Strong Demand for Metals - 16th Sep 20
Why the Knives Are Out for Trump’s Fed Critic Judy Shelton - 16th Sep 20
Operation Moonshot: Get Ready for Millions of New COVAIDS Positives in the UK! - 16th Sep 20
Stock Market Approaching Correction Objective - 15th Sep 20
Look at This Big Reminder of Dot.com Stock Market Mania - 15th Sep 20
Three Key Principles for Successful Disruption Investors - 15th Sep 20
Billionaire Hedge Fund Manager Warns of 10% Inflation - 15th Sep 20
Gold Price Reaches $2,000 Amid Dollar Depreciation - 15th Sep 20
GLD, IAU Big Gold ETF Buying MIA - 14th Sep 20
Why Bill Gates Is Betting Millions on Synthetic Biology - 14th Sep 20
Stock Market SPY Expectations For The Rest Of September - 14th Sep 20
Gold Price Gann Angle Update - 14th Sep 20
Stock Market Recovery from the Sharp Correction Goes On - 14th Sep 20
Is this the End of Capitalism? - 13th Sep 20
The Silver Big Prize - 13th Sep 20
U.S. Shares Plunged. Is Gold Next? - 13th Sep 20
Why Are 7,500 Oil Barrels Floating on this London Lake? - 13th Sep 20
Sheffield 432 Covid-19 Deaths, Last City Centre Shop Before Next Lockdown - 13th Sep 20
Biden or Trump Will Keep The Money Spigots Open - 13th Sep 20
Gold And Silver Up, Down, Sideways, Up - 13th Sep 20

Market Oracle FREE Newsletter

How to Get Rich Investing in Stocks by Riding the Electron Wave

Gold Nears USD and Sterling Highs as Washington Denies "Global Currency War"

Commodities / Gold and Silver 2010 Oct 13, 2010 - 07:57 AM GMT

By: Adrian_Ash

Commodities

Best Financial Markets Analysis ArticleTHE PRICE OF GOLD stalled $3 shy of last week's all-time Dollar record in London trade on Wednesday morning, peaking above $1361 an ounce as the US currency fell and global stock markets rose sharply.

Gold priced in Sterling rose within 1.3% of June's record peak at £870 per ounce.


Eurozone investors wanting to buy gold saw it hold in the upper-end of the last nine weeks' trading range at €31,300 per kilo.

Over in Asia, Tuesday's lack of Indian and Chinese demand had been reversed according to wholesale dealers, with speculative buying noted on the electronic Globex platform after Beijing said China's crude oil imports rose 35% last month from Sept. 2009, hitting a new record of 5.67 million barrels per day.

US crude oil futures jumped back towards $83 per barrel. European equity markets added well over 1%.

Trading-room rumors meantime said Egypt has become at least the 14th central bank to start selling its own currency in a bid to depress its value on the forex market.

"If the inflows are lumpy and volatile, or if they disrupt the macroeconomic situation, we will [also] intervene," said Reserve Bank of India chief Duvvuri Subbarao this morning.

US Treasury secretary Tim Geithner said Tuesday he sees "No risk" of a global currency war – the term used last month by the Brazilian finance minister to describe the rash of naked interventions in the forex market by central banks worldwide.

In the last fortnight alone, believes Simon Derrick at Bank of New York Mellon, purchases of US Dollars by South Korea, Malaysia, Indonesia, Thailand and Taiwan have seen them accumulate foreign exchange reserves at up to six times their previous pace, collectively buying $28.74 billion according to IFR Markets.

"Despite this, the South Korean Won has climbed 5.7% against the Dollar since the start of September," the Financial Times notes, "while the Malaysian Ringgit has gained 1.3% and the Thai Baht 4.3%.

"China has allowed the Renminbi to rise by 2% against the Dollar since the beginning of last month."

Back in gold bullion, "The second round of quantitative easing from the US Fed " – widely expected at $500bn to $2 trillion from the start of Nov. – "has been priced in for the past few weeks," reckons Marwan Shakarchi at Swiss refiner MKS's Finance division.

"The market is now on the look-out for stimulating news."

Minutes from the Federal Reserve's latest meeting, released Tuesday, showed policy-makers voicing growing concerns over rising unemployment and weakening inflation in the US economy, plus an increased willingness to start targeting absolute price levels rather than a particular rate of inflation.

Five voting members of the Fed committee actively support quantitative easing, says a note from analysts at RBS, while another five "will vote with the chairman", Ben Bernanke.

Only one member – Thomas Hoenig, president of Kansas Fed – looks likely to vote against QEII at the forthcoming November meeting.

"The market is priced for the Fed to be pretty aggressive," agrees Steve Barrow, chief currency strategist at Standard Bank. But "the upshot" of QEII "is likely to be further weakness for the Dollar and further falls in bond yields...[perhaps] by leaving the total indeterminate and, instead, announcing a monthly, or quarterly, buying program.

"[The Fed] will only stop this when it deems the policy is no longer necessary."

Swiss bank UBS also expects the Fed to announce monthly targets for its QEII asset purchases, perhaps between $35 billion and $65bn of government Treasury bonds according to chief metals strategist Dr. Edel Tully.

"Gold could correct if the Fed's asset purchases are smaller than expected," she cautions, quoted by Dow Jones Newswire, "since gold prices have already risen substantially in anticipation of quantitative easing."

Technical analysis also means "Charts are showing warning signs of a possible consolidation taking place," according to Axel Rudolph at Commerzbank in Luxembourg.

"Put another way, the risks at present outweigh the potential rewards of buying gold at current levels," he adds, in part because "Five and 25-year seasonality shows October to be a month in which the gold price tends to decline."

Turning short-term bullish on the US Dollar, Dr. Marc Faber – the Swiss "über-bear" money manager now based in Thailand, and editor of the Gloom, Boom & Doom Report – agrees there could be a "significant correction" in gold and other commodity prices.

"This would represent a buying opportunity," he advises.

By Adrian Ash

BullionVault.com

Gold price chart, no delay   |   Buy gold online at live prices

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

6 Critical Money Making Rules