Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
Silver Long-term Trend Analysis - 28th Nov 21
Silver Mining Stocks Fundamentals - 28th Nov 21
Crude Oil Didn’t Like Thanksgiving Turkey This Year - 28th Nov 21
Sheffield First Snow Winter 2021 - Snowballs and Snowmen Fun - 28th Nov 21
Stock Market Investing LESSON - Buying Value - 27th Nov 21
Corsair MP600 NVME M.2 SSD 66% Performance Loss After 6 Months of Use - Benchmark Tests - 27th Nov 21
Stock Maket Trading Lesson - How to REALLY Trade Markets - 26th Nov 21
SILVER Price Trend Analysis - 26th Nov 21
Federal Reserve Asks Americans to Eat Soy “Meat” for Thanksgiving - 26th Nov 21
Is the S&P 500 Topping or Just Consolidating? - 26th Nov 21
Is a Bigger Drop in Gold Price Just Around the Corner? - 26th Nov 21
Financial Stocks ETF Sector XLF Pullback Sets Up A New $43.60 Upside Target - 26th Nov 21
A Couple of Things to Think About Before Buying Shares - 25th Nov 21
UK Best Fixed Rate Tariff Deal is to NOT FIX Gas and Electric Energy Tariffs During Winter 2021-22 - 25th Nov 21
Stock Market Begins it's Year End Seasonal Santa Rally - 24th Nov 21
How Silver Can Conquer $50+ in 2022 - 24th Nov 21
Stock Market Betting on Hawkish Fed - 24th Nov 21
Stock Market Elliott Wave Trend Forecast - 24th Nov 21
Your once-a-year All-Access Financial Markets Analysis Pass - 24th Nov 21
Did Zillow’s $300 million flop prove me wrong? - 24th Nov 21
Now Malaysian Drivers Renew Their Kurnia Car Insurance Online With Fincrew.my - 24th Nov 21
Gold / Silver Ratio - 23rd Nov 21
Stock Market Sentiment Speaks: Can We Get To 5500SPX In 2022? But 4440SPX Comes First - 23rd Nov 21
A Month-to-month breakdown of how Much Money Individuals are Spending on Stocks - 23rd Nov 21
S&P 500: Rallying Tech Stocks vs. Plummeting Oil Stocks - 23rd Nov 21
Like the Latest Bond Flick, the US Dollar Has No Time to Die - 23rd Nov 21
Why BITCOIN NEW ALL TIME HIGH Changes EVERYTHING! - 22nd Nov 21
Cannabis ETF MJ Basing & Volatility Patterns - 22nd Nov 21
The Most Important Lesson Learned from this COVID Pandemic - 22nd Nov 21
Dow Stock Market Trend Analysis - 22nd Nov 21
UK Covid-19 Booster Jabs Moderna, Pfizer Are They Worth the Risk of Side effects, Illness? - 22nd Nov 21
US Dollar vs Yields vs Stock Market Trends - 20th Nov 21
Inflation Risk: Milton Friedman Would Buy Gold Right Now - 20th Nov 21
How to Determine if It’s Time for You to Outsource Your Packaging Requirements to a Contract Packer - 20th Nov 21
2 easy ways to play Facebook’s Metaverse Spending Spree - 20th Nov 21
Stock Market Margin Debt WARNING! - 19th Nov 21
Gold Mid-Tier Stocks Q3’21 Fundamentals - 19th Nov 21
Protect Your Wealth From PERMANENT Transitory Inflation - 19th Nov 21
Investors Expect High Inflation. Golden Inquisition Ahead? - 19th Nov 21
Will the Senate Confirm a Marxist to Oversee the U.S. Currency System? - 19th Nov 21
When Even Stock Market Bears Act Bullishly (What It May Mean) - 19th Nov 21
Chinese People do NOT Eat Dogs Newspeak - 18th Nov 21
CHINOBLE! Evergrande Reality Exposes China Fiction! - 18th Nov 21
Kondratieff Full-Season Stock Market Sector Rotation - 18th Nov 21
What Stock Market Trends Will Drive Through To 2022? - 18th Nov 21
How to Jump Start Your Motherboard Without a Power Button With Just a Screwdriver - 18th Nov 21
Bitcoin & Ethereum 2021 Trend - 18th Nov 21
FREE TRADE How to Get 2 FREE SHARES Fractional Investing Platform and ISA Specs - 18th Nov 21
Inflation Ain’t Transitory – But the Fed’s Credibility Is - 18th Nov 21
The real reason Facebook just went “all in” on the metaverse - 18th Nov 21
Biden Signs a Bill to Revive Infrastructure… and Gold! - 18th Nov 21
Silver vs US Dollar - 17th Nov 21
Silver Supply and Demand Balance - 17th Nov 21
Sentiment Speaks: This Stock Market Makes Absolutely No Sense - 17th Nov 21
Biden Spending to Build Back Stagflation - 17th Nov 21
Meshing Cryptocurrency Wealth Generation With Global Fiat Money Demise - 17th Nov 21
Dow Stock Market Trend Forecast Into Mid 2022 - 16th Nov 21
Stock Market Minor Cycle Correcting - 16th Nov 21
The INFLATION MEGA-TREND - Ripples of Deflation on an Ocean of Inflation! - 16th Nov 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Gold Rises to 4 Session High as Global Equities Rally

Commodities / Gold & Silver Apr 07, 2008 - 09:21 AM GMT

By: Adrian_Ash

Commodities GOLD PRICES jumped to a four-session high above $918 per ounce in London trade early Monday, rising 0.5% from last week's close as crude oil rose 1% and world stock markets ticked higher.


"With the US Dollar continuing to weaken and crude oil pretty well supported, there's a need for an inflationary hedge and more people are shifting to commodities including gold," said Ellison Chu, the head of precious metals trading for Standard Bank Asia in Hong Kong, to Bloomberg this morning.

But for short-term direction, "there are no fresh data cues until the Federal Reserve [policy] minutes on Tuesday," notes Kishore Narne of Anand Rathi Commodities in Mumbai.

Notes from the Fed's last policy meeting – when it cut Dollar interest rates by 0.75% – are due at 13:00 EST tomorrow. Thursday brings new interest-rate decisions from the European Central Bank in Frankfurt and the Bank of England in London.

But caught between rising inflation and the global banking crisis – which now presents an "evident" case for public intervention according to Dominic Strauss-Kahn, head of the International Monetary Fund – neither the ECB or BoE is expected to change the cost of money.

"Gold Prices at this level represent good value and I do think we are going to see more demand from Asia," reckons Jonathan Barratt, head of Commodity Broking Services in Sydney.

"For kilo bars, we are seeing a shortage and a premium running at about 40 cents per kilo [in Asia] and we anticipate that to move up to 75 cents in the next few months."

Today the Australian stock market added 0.3% despite a broad rise in Asian-Pacific stocks after the country's third-largest bank, ANZ, sank on news it had to raise bad-debt provisions by 71% in the six months to end-March.

On the data front, Australia's exports fell 4% and imports were unchanged in Feb. from Jan., taking the country's trade deficit to A$3.29 billion (US$3bn). Analysts had expected only three-quarters that gap.

Tokyo gold futures meantime neared Monday's close up 1.1% at ¥3,042 per gram – equal to $922.65 per ounce for Feb. ‘09 delivery – as the Japanese Yen slipped back towards a three-week low on the currency market.

That also boosted Japanese export shares, pushing the Nikkei stock index 1.2% higher to a five-week high as brokerage shares also rose alongside metal and oil prices.

Hong Kong stocks rose 1.1%, helped by a 10% surge in Zijin Mining, China's largest gold-mining group. Today it announced a $1.4bn public offering on the Shanghai stock exchange – plus a further 10% enlargement of its Hong Kong listing – to raise funds for new acquisitions overseas.

Zijin had previously dropped 42% of its value since the start of 2008, falling sharply alongside the Hong Kong market despite a near 50% uplift in reported earnings.

Gold prices in India ticked lower to 11,840 Rupees per 10 grams – down from last month's new all-time peaks above R13,000 – as the Sensex measure of Bombay stocks added 2%.

A committee set up by the government's Planning Commission and chaired by former IMF chief economist Raghuram Rajan said today that the Reserve Bank of India should make controlling inflation its single objective.

The annual inflation rate rose to 7% in the week-ending 22nd March according to official data, the worst rate since Dec. 2004.

The Sensex remained almost 25% below its starting level for 2008.

European stocks rose 0.8% by lunchtime in Frankfurt after finishing their best week in more than 12 months according to Reuters data. Over on the currency markets the Euro recovered of an early one cent loss to reach $1.5700 on news of strong German industrial output in Feb.

The British Pound dipped almost two cents from Friday's high to reach $1.9870, pushing the gold price in British Pounds just above £462 per ounce. For French, German and Italian investors looking to buy gold today, the price reached its best level since Monday last week €585 per ounce.

Over in New York, meantime, the latest CFTC data showed professional and private investors sharply cutting their leveraged bets on gold market futures in the week-ending April 1st.

The net balance of bullish contracts held by gold futures traders dropped by 8%. April Fool's Day then saw world gold prices slump more than 3% to a 10-week low of $875 per ounce.

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 2008

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