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 ETF Selling Continue, Futures Bearishness Marks "Possible Turn in Sentiment"

Commodities / Gold and Silver 2013 Dec 09, 2013 - 06:00 PM GMT

By: Adrian_Ash

Commodities

The PRICE of wholesale gold held steady around $1230 per ounce in London trade Monday morning, ticking upwards as European shares slipped but Asian stock markets closed higher after strong data from China.

The Euro rose to 6-week highs vs. the Dollar on the FX market, capping gold priced in the single currency beneath €900 per ounce.


Silver rose 0.7% as commodities also gained, together with major government bond prices, reaching $19.65 per ounce.

"A lot of [gold] selling has now been done," reckons Frances Hudson, co-manager of $271 billion at Standard Life Investments in Edinburgh, quoted by Bloomberg.

"So you could see a more stable base for the gold price to build on."

Last week the giant SPDR Gold Trust (ticker: GLD) shed another 0.9% of the metal held to back its exchange-traded shares, taking the total down to a near 5-year low beneath 836 tonnes.

Bearish betting by money managers, hedge funds and other speculators meantime rose in the week-to-last-Tuesday to 315 tonnes equivalent, well above the 250-tonne average of 2013 to date.

That compares with the previous 5-year average short position of 96 tonnes.

Overall, however, so-called speculative traders remain bullish on gold in aggregate, with their long position in US futures and options outweighing those short bets by 151 tonnes – the smallest "net long" since midsummer's multi-year lows.

"This could be just the news that the gold bugs wanted to hear," says the Financial Times.

"More and more traders have lost faith...Yet the more that a consensus [for lower 2014 prices] builds, the closer to a possible turn in sentiment."

"We could expect a short-term recovery in prices," Reuters quotes Hong Kong economist Alexis Garatti at Haitong International Research.

"[Because] in our view, the mood of the market is exaggerated regarding the macroeconomic situation in the US."

New data from Beijing meantime showed a surge in China's exports for November, taking the overall trade surplus to a sudden 4-year high.

The world's largest gold mining producer, China is now also the world's largest end-buyer of gold, overtaking India in 2013, which will likely see a drop in gold imports to 900 tonnes according to comments Monday from market-development group the World Gold Council.

Gold prices on the Shanghai Gold Exchange rose Monday in brisk trade, even as the Yuan exchange rate was raised to new highs against the Dollar by the People's Bank.

"There's so much room to grow," says World Gold Council investment director for the Far East, Roger Liu, quoted by the Wall Street Journal.

Noting China's current gold accumulation of 4.5 grams per head per year, and contrasting it with the global 24-gram average, "I expect more [ETF trust fund] products along the lines of SPDR Trust to pop up in China," Liu concludes.

By Adrian Ash
BullionVault.com

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

Adrian Ash is head of research at BullionVault, the secure, low-cost gold and silver market for private investors online, where you can buy gold and silver in Zurich, Switzerland for just 0.5% commission.

(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.

Adrian Ash 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