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
Stock Market Bull Trend in Jeopardy - 3rd Mar 21
New Global Reserve Currency? - 3rd Mar 21
Gold To Monetary Base Ratio Says No Hyperinflation - 3rd Mar 21
US Fed Grilled about Its Unsound Currency, Digital Currency Schemes - 3rd Mar 21
The Case Against Inflation - 3rd Mar 21
How to Start Crypto Mining Bitcoins, Ethereum with Your Desktop PC, Laptop with NiceHash - 3rd Mar 21
AI Tech Stocks Investing Portfolio Buying Levels and Valuations 2021 Explained - 2nd Mar 21
There’s A “Chip” Shortage: And TSMC Holds All The Cards - 2nd Mar 21
Why now might be a good time to buy gold and gold juniors - 2nd Mar 21
Silver Is Close To Something Big - 2nd Mar 21
Bitcoin: Let's Put 2 Heart-Pounding Price Drops into Perspective - 2nd Mar 21
Gold Stocks Spring Rally 2021 - 2nd Mar 21
US Housing Market Trend Forecast 2021 - 2nd Mar 21
Covid-19 Vaccinations US House Prices Trend Indicator 2021 - 2nd Mar 21
How blockchain technology will change the online casino - 2nd Mar 21
How Much PC RAM Memory is Good in 2021, 16gb, 32gb or 64gb? - 2nd Mar 21
US Housing Market House Prices Momentum Analysis - 26th Feb 21
FOMC Minutes Disappoint Gold Bulls - 26th Feb 21
Kiss of Life for Gold - 26th Feb 21
Congress May Increase The Moral Hazard Building In The Stock Market - 26th Feb 21
The “Oil Of The Future” Is Set To Soar In 2021 - 26th Feb 21
The Everything Stock Market Rally Continues - 25th Feb 21
Vaccine inequality: A new beginning or another missed opportunity? - 25th Feb 21
What's Next Move For Silver, Gold? Follow US Treasuries and Commodities To Find Out - 25th Feb 21
Warren Buffett Buys a Copper Stock! - 25th Feb 21
Work From Home Inflationary US House Prices BOOM! - 25th Feb 21
Man Takes First Steps Towards Colonising Mars - Nasa Perseverance Rover in Jezero Crater - 25th Feb 21
Musk, Bezos And Cook Are Rushing To Lock In New Lithium Supply - 25th Feb 21
US Debt and Yield Curve (Spread between 2 year and 10 year US bonds) - 24th Feb 21
Should You Buy a Landrover Discovery Sport in 2021? - 24th Feb 21
US Housing Market 2021 and the Inflation Mega-trend - QE4EVER! - 24th Feb 21
M&A Most Commonly Used Software - 24th Feb 21
Is More Stock Market Correction Needed? - 24th Feb 21
VUZE XR Camera 180 3D VR Example Footage Video Image quality - 24th Feb 21
How to Protect Your Positions From A Stock Market Sell-Off Using Options - 24th Feb 21
Why Isn’t Retail Demand for Silver Pushing Up Prices? - 24th Feb 21
2 Stocks That Could Win Big In The Trillion Dollar Battery War - 24th Feb 21
US Economic Trends - GDP, Inflation and Unemployment Impact on House Prices 2021 - 23rd Feb 21
Why the Sky Is Not Falling in Precious Metals - 23rd Feb 21
7 Things Every Businessman Should Know - 23rd Feb 21
For Stocks, has the “Rational Bubble” Popped? - 23rd Feb 21
Will Biden Overheat the Economy and Gold? - 23rd Feb 21
Precious Metals Under Seige? - 23rd Feb 21
US House Prices Trend Forecast Review - 23rd Feb 21
Lithium Prices Soar As Tesla, Apple And Google Fight For Supply - 23rd Feb 21
Stock Markets Discounting Post Covid Economic Boom - 22nd Feb 21
Economics Is Why Vaccination Is So Hard - 22nd Feb 21
Pivotal Session In Stocks Bull Bear Battle - 22nd Feb 21
Gold’s Downtrend: Is This Just the Beginning? - 22nd Feb 21
The Most Exciting Commodities Play Of 2021? - 22nd Feb 21
How to Test NEW and Used GPU, and Benchmark to Make sure it is Working Properly - 22nd Feb 21
US House Prices Vaccinations Indicator - 21st Feb 21
S&P 500 Correction – No Need to Hold Onto Your Hat - 21st Feb 21
Gold Setting Up Major Bottom So Could We See A Breakout Rally Begin Soon? - 21st Feb 21
Owning Real Assets Amid Surreal Financial Markets - 21st Feb 21
Great Investment Ideas For 2021 - 21st Feb 21

Market Oracle FREE Newsletter

FIRST ACCESS to Nadeem Walayat’s Analysis and Trend Forecasts

Gold Slips as Silver and Oil Rise with Stocks, Greece Wants Debt to be Restructured

Commodities / Gold and Silver 2010 Nov 01, 2010 - 08:28 AM GMT

By: Adrian_Ash

Commodities

THE PRICE OF GOLD gave back an overnight rise to 8-session highs at $1365 per ounce in London trade on Monday morning, falling back as US stock markets opened strongly higher following better-than-expected manufacturing data.

Crude oil prices jumped almost 2.5%, and silver prices touched new three-decade highs above $25 an ounce.


A sudden spike in the US Dollar's exchange-rate with the Japanese Yen failed to hold, keeping it at 15-year lows. The Euro struggled below $1.40, however.

"The gold physical market is now providing support rather than resistance," says Walter de Wet at Standard Bank.

"Overall, we believe that should [continue] until the end of January. However, post-Diwali (5 November), this support may be situated at a lower price level – possibly below $1300 per ounce, depending on [the Fed's] actions on Wednesday.

"Resistance in the physical market may [then] grow stronger post-China New Year [on 3 Feb.] and run well into 2011."

Over in the leveraged derivatives market, meantime, new data from the US gold futures and options market showed speculative players cutting their bullishness on gold for the second week running in the week to last Tuesday.

Reducing their "net long" position to the equivalent of 946 tonnes, so-called "non-commercial" and small, private-investor traders held the smallest net-long position in gold futures and options since late August.

Back then, the gold price was trading more than $100 lower per ounce.

Looking ahead, Wednesday's widely-expected announcement of new quantitative easing from the US Federal Reserve continues to occupy most major-bank analysts, with Standard Bank repeating its view that gold is already priced for $500bn of QEII.

"Quantitative easing threatens to postpone the necessary rebalancing of the US economy," writes GMO asset allocation advisor – and financial historian – Edward Chancellor in the Financial Times' Fund Management supplement today.

"After the great credit binge, deflation reflects the desire of households and companies to pay down their excessive debts. It is a symptom, not a cause, of a problem [as] the experience of Japan over recent decades shows.

"The US needs to save and invest more to ensure its long-term prosperity."

Meantime in the stock market, government-supported insurance giant AIG said it will repay almost $37bn after selling two foreign businesses.

Shares in bond-insurance giant Ambac plummeted, however, after it said it's trying to negotiate a "pre-packaged" bankruptcy with its senior creditors.

Last month the troubled bond insurer reached a deal with bankrupt Lehman Brothers Holdings Inc. regarding claims the two filed against each other. One aspect of the agreement was to have Ambac drop its claim for $6.1 billion against Lehman.

The news halved Ambac's stock-market capitalization to $120 million.

"Demonizing debt restructuring is wrong," said Greece's deputy prime minster Theodoros Pangalos on Sunday.

"Debt exists to be restructured. [The Greek government] may pursue it ourselves or it may be proposed to us and it may too advantageous to turn it down."

Writing in the Irish Independent this weekend – and looking ahead to when Dublin next tries to raise cash from bond investors – "If [the government] do too little to convince the markets [in the early Dec. budget statement], the game is up," warns University College Dublin lecturer Colm McCarthy, "and the Irish Government will be unable to finance itself.

"That means an IMF/European bailout and economic policy dictated from outside the country."

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