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 Heads for Third Straight Weekly Fall in Thin Market

Commodities / Gold and Silver 2013 Apr 12, 2013 - 03:46 PM GMT

By: Ben_Traynor

Commodities

U.S. DOLLAR gold prices fell below $1550 an ounce Friday morning, though they remained above last week's low, as stocks and commodities also fell and the Dollar strengthened, with Eurozone finance ministers set to discuss Cyprus, Ireland and Portugal today.

"Current momentum favors a test to the downside," say technical analysts at Scotia Mocatta, "but we would not expect significant liquidation until a break of $1500."


Analysts at Barclays Capital meantime say gold should hit support around last week's low of $1540 an ounce, but ad that there is tough resistance around $1590.

"It's a thin market," one dealer in Singapore told newswire Reuters this morning.

"Buying is not exceptionally high from India. I would say there isn't anything unusual yet."

Gold in Sterling meantime fell to its lowest level this year on the spot market at £1006 an ounce, only just above its December low and close to its lowest level since July last year.

Gold in Euros dropped to €1185 an ounce, a two-month low and nearly 15% off its all-time high set last September.

Heading into the weekend, the Dollar gold price looked set for its third straight weekly drop, down 2% on where it closed last Friday, the steepest drop since February.

Silver meantime fell back below $27.50 an ounce, though it remained slightly up on the week by Friday lunchtime in London.

On the currency markets, the Euro fell against the Dollar this morning, handing back all of yesterday's gains, amid fears that Cyprus's bailout may not be large enough.

Germany's government said Friday that the €10 billion figure for bailing out Cyprus is "not up for negotiation" following news that the country needs to find €23 billion to meet its financing needs over the next three years.

"We cannot do any more," agreed Luxembourg finance minister Luc Frieden, attending today's Eurogroup meeting of single currency finance ministers.

Eurogroup president Jeroen Dijsselbloem meantime said he was "very optimistic about helping Portugal and Ireland," adding that an agreement will "hopefully" be reached to extend loans to those countries by seven years.

Dijsselbloem denied that the subject of bad loans in Slovenia's banking sector was due to be discussed at the meeting.

Elsewhere in Europe, British prime minister David Cameron traveled to Berlin Friday to discuss European Union reform with German chancellor Angela Merkel.

The Bank of Japan meantime has taken "all necessary steps to achieve [its] 2% inflation [target] in two years," BoJ governor Haruhiko Kuroda said Friday.

"But it's not appropriate to limit our policy to two years...we will not hesitate to adjust policy in the future as the economy is like a living thing."

The BoJ's promise last week to spend $1.4 trillion of newly-created money on various assets "does not appear to have been bullish for Japanese gold demand" says a note from Credit Suisse this morning.

"Record prices of gold in yen have seen a marked increase in sales of both bars and scrap as investors realize gains...the BoJ's efforts to displace Yen from JGBs [Japanese Government Bonds] and into other avenues are likely to exaggerate the global hunt for yield and real returns by Japanese individuals and institutions...we think it more likely that will be reflected in rising equity prices and falling bond yields abroad than in accelerating gold demand domestically."

The Tokyo Stock Exchange suspended JGB futures trading Fridays following a sharp drop in prices.

By Ben Traynor
BullionVault.com

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

Editor of Gold News, the analysis and investment research site from world-leading gold ownership service BullionVault, Ben Traynor was formerly editor of the Fleet Street Letter, the UK's longest-running investment letter. A Cambridge economics graduate, he is a professional writer and editor with a specialist interest in monetary economics.(c) BullionVault 2013

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.

Ben Traynor 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