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
How Stagflation Effects Stocks - 5th Dec 21
Bitcoin FLASH CRASH! Cryptos Blood Bath as Exchanges Run Stops, An Early Christmas Present for Some? - 5th Dec 21
TESCO Pre Omicron Panic Christmas Decorations Festive Shop 2021 - 5th Dec 21
Dow Stock Market Trend Forecast Into Mid 2022 - 4th Dec 21
INVESTING LESSON - Give your Portfolio Some Breathing Space - 4th Dec 21
Don’t Get Yourself Into a Bull Trap With Gold - 4th Dec 21
GOLD HAS LOTS OF POTENTIAL DOWNSIDE - 4th Dec 21
4 Tips To Help You Take Better Care Of Your Personal Finances- 4th Dec 21
What Is A Golden Cross Pattern In Trading? - 4th Dec 21
Bitcoin Price TRIGGER for Accumulating Into Alt Coins for 2022 Price Explosion - Part 2 - 3rd Dec 21
Stock Market Major Turning Point Taking Place - 3rd Dec 21
The Masters of the Universe and Gold - 3rd Dec 21
This simple Stock Market mindset shift could help you make millions - 3rd Dec 21
Will the Glasgow Summit (COP26) Affect Energy Prices? - 3rd Dec 21
Peloton 35% CRASH a Lesson of What Happens When One Over Pays for a Loss Making Growth Stock - 1st Dec 21
Stock Market Sentiment Speaks: I Fear For Retirees For The Next 20 Years - 1st Dec 21 t
Will the Anointed Finanical Experts Get It Wrong Again? - 1st Dec 21
Main Differences Between the UK and Canadian Gaming Markets - 1st Dec 21
Bitcoin Price TRIGGER for Accumulating Into Alt Coins for 2022 Price Explosion - 30th Nov 21
Omicron Covid Wave 4 Impact on Financial Markets - 30th Nov 21
Can You Hear It? That’s the Crowd Booing Gold’s Downturn - 30th Nov 21
Economic and Market Impacts of Omicron Strain Covid 4th Wave - 30th Nov 21
Stock Market Historical Trends Suggest A Strengthening Bullish Trend In December - 30th Nov 21
Crypto Market Analysis: What Trading Will Look Like in 2022 for Novice and Veteran Traders? - 30th Nov 21
Best Stocks for Investing to Profit form the Metaverse and Get Rich - 29th Nov 21
Should You Invest In Real Estate In 2021? - 29th Nov 21
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

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Gold and Oil Slump as Hurricane Gustav Weakens

Commodities / Gold & Silver Sep 01, 2008 - 10:43 AM GMT

By: Adrian_Ash

Commodities THE SPOT PRICE OF GOLD slipped out of a tight 0.5% range lunchtime in London on Monday, moving below last week's close at $831 per ounce as world stock markets fell and bond prices rose.

Crude oil slid back to $114 a barrel as Hurricane Gustav moved towards Louisiana , closing every oil-rig in the Gulf of Mexico but not gaining strength as it approached a near-deserted New Orleans .


Over in Tokyo , the Nikkei stock index ended the first day of Sept. some 15% below its start of the year.

Here in London , the FTSE100 dropped 80 points at the opening to stand at 5,587 by late morning – also 15% down for '08 to date.

"The International Energy Agency (IEA) has pledged to release emergency oil supplies if hurricane Gustav disrupts oil infrastructure in the Gulf of Mexico ," notes Manqoba Madinane in today's Gold Market report for Standard Bank.

"This should absorb the speculative premium in crude oil prices and render an oil price rally unlikely today...[keeping] precious metal investment sentiment subdued amid thin market trading volumes into the New York session."

With Wall Street closed for the Labor Day holiday, the US Dollar continued to rise on the currency markets this morning, pushing the Euro back towards $1.4600.

The British Pound meanwhile sank to its lowest level vs. the Dollar since April 2006 after the UK finance minister, Alistair Darling, said in a weekend newspaper interview that the current economic turmoil – the worst in 60 years, be claimed, ignoring the recessions of the 1970s, '80s and '90s – is partly his government's fault.

Today brought news that UK home-loans sank to a fresh low of just 33,000 in July – down more than 70% from the same month last year.

Despite the collapse in residential UK real estate, however – now priced 10% below the all-time peak of summer '07 – the country's money supply continues to expand at a near-record pace.

New borrowing by hedge funds, stock brokers and other financial corporations grew by 31% in the year-to-July – a fresh all-time record and more than twice the average annualized growth so far this decade.

Today the Gold Price in Pounds Sterling – which has more than doubled in the last three years – touched a four-week high above £462.50 per ounce.

"[In Dollars] still 835 is the big level," says Phil Smith's technical analysis for Reuters India.

"All the recent closes have been below and US trading on Friday did not break the pattern. One to watch for sure and a break above would set up a move to the next resistance point [at 859]."

In the Gold Futures market last week, commercial traders – including refinery groups looking to protect themselves against a changing Gold Price – grew their bullish bets by 8% according to the latest official data.

That took the number of outstanding "long" positions held by gold-industry players to a 15-month high. Their "short" positions were little changed, meantime. So as a proportion of their total position, bullish contracts rose above one-in-three of all contracts held by commercial traders – the largest proportion since the same week in 2007.

Hedge funds, in contrast – and along with other speculative players in US gold futures – rapidly added to their bearish positions, says the Commitment of Traders data. They added one new "short" contract for every three already open.

Overall, these non-commercial traders pushed their bullish ratio down further from the recent record of 89% to just 79% – again, the same level as the end of Aug. '07, just before Gold Prices leapt by more than one-half inside six month.

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