Flight To Safety - Gold Rises As Stocks, European Bonds Sink
Commodities / Gold and Silver 2014 Oct 16, 2014 - 03:39 PM GMTToday’s AM fix was USD 1,241.00, EUR 969.38 and GBP 775.87 per ounce.
Yesterday’s AM fix was USD 1,223.50, EUR 967.58 and GBP 768.63 per ounce.
Gold climbed $4.40 or 0.36% to $1,237.80 per ounce and silver slipped $0.03 or 0.17% to $17.43 per ounce yesterday. Gold s now nearly 5% above its recent lows and is again acting as a hedging instrument in investment portfolios after sharp falls in stock and many bond markets.
Gold in U.S. Dollars - 2 Years (Thomson Reuters)
Gold retained sharp overnight gains today to trade near its highest in over a month as investors sought safety amid increasing concerns over a slump in the global economy. Gold rose to its highest since September 11 at $1,249.30 yesterday.
This morning gold for Swiss storage or for immediate delivery rose 0.2% to $1,244 an ounce by 12:00 in London, according to Bloomberg generic pricing. Futures trading volume was 64% above the average for the past 100 days for this time of day.
Global stocks plummeted yesterday and again today, on investor concern that U.S. and Chinese inflation data are signalling a global slowdown in economic activity. U.S. retail sales fell in September and producer prices declined for the first time in a year.
S&P 500 Stock Index - 10 Years (Thomson Reuters)
The MSCI All-Country World Index of equities slumped to an eight month low yesterday and the Bloomberg Commodity Index has retreated to the lowest level since July 2009.
The risks of a stock market crash are quite high and the complacency of recent months has inevitably come to a shuddering halt.
Weak U.S. data and global growth concerns will likely prompt the Federal Reserve to delay a hike in interest rates, a potential boost for non-interest-bearing gold - as we have warned of for some time.
Sharelynx.com
Europe and the debt laden world risks falling into a downward spiral of falling wages, prices and deflation.
Investors fled into safe haven gold bullion, bonds and Japanese yen as the dollar and oil declined.
Yesterday’s, stampede into non risky assets resulted in a massive rally in U.S. Treasury bonds, moving the benchmark 10-year note's yield as low as 1.865%, its lowest since May 2013.
Today, markets are in a panic. Greek stocks, which collapsed yesterday, are down another 2% today.
Italian stocks are down 3.6% right now, on top of the 4% decline yesterday.
The FTSE and DAX are down nearly 2% and France is down nearly 3%.
Irish 10 Year Bonds (Thomson Reuters)
There is huge volatility in stock markets and European bonds have seen sharp selling again, with Greek 10-year interest rates surging to nearly 9% and Irish bonds rising over 20 basis points to over 1.9%.
Spanish 10-year government bond yields rose 26 basis points to 2.37 percent, while equivalent Italian yields were 28 bps up at 2.68 percent. Portuguese yields rose 27 bps to 3.57 percent.
As we have warned for many months now, the Eurozone and indeed global financial crisis is far from over. We had a brief interlude after the starter but the main course is soon to commence.
Get Breaking News and Updates On Gold and Markets Here
This update can be found on the GoldCore blog here.
Yours sincerely,
Mark O'Byrne
Exective Director
IRL |
UK |
IRL +353 (0)1 632 5010 |
WINNERS MoneyMate and Investor Magazine Financial Analysts 2006
Disclaimer: The information in this document has been obtained from sources, which we believe to be reliable. We cannot guarantee its accuracy or completeness. It does not constitute a solicitation for the purchase or sale of any investment. Any person acting on the information contained in this document does so at their own risk. Recommendations in this document may not be suitable for all investors. Individual circumstances should be considered before a decision to invest is taken. Investors should note the following: Past experience is not necessarily a guide to future performance. The value of investments may fall or rise against investors' interests. Income levels from investments may fluctuate. Changes in exchange rates may have an adverse effect on the value of, or income from, investments denominated in foreign currencies. GoldCore Limited, trading as GoldCore is a Multi-Agency Intermediary regulated by the Irish Financial Regulator.
GoldCore is committed to complying with the requirements of the Data Protection Act. This means that in the provision of our services, appropriate personal information is processed and kept securely. It also means that we will never sell your details to a third party. The information you provide will remain confidential and may be used for the provision of related services. Such information may be disclosed in confidence to agents or service providers, regulatory bodies and group companies. You have the right to ask for a copy of certain information held by us in our records in return for payment of a small fee. You also have the right to require us to correct any inaccuracies in your information. The details you are being asked to supply may be used to provide you with information about other products and services either from GoldCore or other group companies or to provide services which any member of the group has arranged for you with a third party. If you do not wish to receive such contact, please write to the Marketing Manager GoldCore, 63 Fitzwilliam Square, Dublin 2 marking the envelope 'data protection'
GoldCore Archive |
© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.