Best of the Week
Most Popular
1. Stock Markets and the History Chart of the End of the World (With Presidential Cycles) - 28th Aug 20
2.Google, Apple, Amazon, Facebook... AI Tech Stocks Buying Levels and Valuations Q3 2020 - 31st Aug 20
3.The Inflation Mega-trend is Going Hyper! - 11th Sep 20
4.Is this the End of Capitalism? - 13th Sep 20
5.What's Driving Gold, Silver and What's Next? - 3rd Sep 20
6.QE4EVER! - 9th Sep 20
7.Gold Price Trend Forecast Analysis - Part1 - 7th Sep 20
8.The Fed May “Cause” The Next Stock Market Crash - 3rd Sep 20
9.Bitcoin Price Crash - You Will be Suprised What Happens Next - 7th Sep 20
10.NVIDIA Stock Price Soars on RTX 3000 Cornering the GPU Market for next 2 years! - 3rd Sep 20
Last 7 days
TESLA! Cathy Wood ARK Funds Bubble BURSTS! - 12th May 21
Gold Price During Hyperinflation - 12th May 21
Stock Market Extending Phase Two? - 12th May 21
Crypto 101 for new traders – ETH or BTC? - 12th May 21
Stock Market Enters Early Summer Correction Trend Forecast Time Window - 11th May 21
GOLD GDX, HUI Stocks - Will Paradise Turn into a Dystopia? - 11th May 21
Cathy Wood Bubble Bursts as ARK Funds CRASH! Enter into a Severe Bear Market - 11th May 21
Apply This Technique to Stop Rushing into Trades - 10th May 21
Stock Market Entering Early Summer Correction Trend Forecast - 10th May 21
CHIA Getting Started SSD Crypto Mining by Plotting and Farming on Your Hard Drives Guide - 9th May 21
Yaheetech Mesh Best Cheap Computer /. Gaming Chairs on Amazon Review - 9th May 21
Breaking US Trade Embargo with Cuba - Build 7 Computers in 14 Hours Before Ship Sales Challenge - 9th May 21
Dripcoin Applies New Technology That Provides Faster Order Execution - 9th May 21
Capital Gains Tax Hike News: Was It REALLY to Blame for Sell-off? - 7th May 21
Stock Market Transportation Index Continues To Grind Higher - 7th May 21
SPX Stock Market Correction Arriving or Not? - 7th May 21
How to Invest in an Online Casino? - 7th May 21
Gold & Silver Begin New Advancing Cycle Phase - 6th May 21
Vaccine Economic Boom and Bust - 6th May 21
USDX, Gold Miners: The Lion and the Jackals - 6th May 21
What If You Turn Off Your PC During Windows Update? Stuck on Automatic Repair Nightmare! - 6th May 21
4 Insurance Policies You Should Consider Buying - 6th May 21
Fed Taper Smoke and Mirrors - 5th May 21
Global Economic Recovery 2021 and the Dark Legacies of Smoot-Hawley - 5th May 21
Utility Stocks Continue To Rally – Sending A Warning Signal Yet? - 5th May 21
ROIMAX Trading Platform Review - 5th May 21
Gas and Electricity Price Trends so far in 2021 for the United Kingdom - 5th May 21
Crypto Bubble Mania Free Money GPU Mining With NiceHash Continues... - 4th May 21
Stock Market SPX Short-term Correction - 4th May 21
Gold & Silver Wait Their Turn to Ride the Inflationary Wave - 4th May 21
Gold Can’t Wait to Fall – Even Without USDX’s Help - 4th May 21
Stock Market Investor Psychology: Here are 2 Rare Traits Now on Display - 4th May 21
Sheffield Peoples Referendum May 6th Local Elections 2021 - Vote for Committee Decision's or Dictatorship - 4th May 21
AlphaLive Brings Out Latest Trading App for Android - 4th May 21
India Covid-19 Apocalypse Heralds Catastrophe for Pakistan & Bangladesh, Covid in Italy August 2019! - 3rd May 21
Why Ryzen PBO Overclock is Better than ALL Core Under Volting - 5950x, 5900x, 5800x, 5600x Despite Benchmarks - 3rd May 21
MMT: Medieval Monetary Theory - 3rd May 21
Magical Flowering Budgies Bird of Paradise Indoor Grape Vine Flying Fun in VR 3D 180 UK - 3rd May 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Gold Sits Tight vs. Rising Dollar

Commodities / Gold and Silver 2010 Jun 22, 2010 - 07:55 AM GMT

By: Adrian_Ash

Commodities

THE PRICE OF GOLD held tight vs. a rising US Dollar on London's wholesale market early Tuesday, trading back down from $1240 to last night's two-session low of $1232 an ounce.

World stock markets caught up with Wall Street's late fall, and commodity markets also fell.


Crude oil lost 1.5% to $76.60 per barrel.

"Gold's price action [on Monday] was quite bearish," says the latest technical analysis from Scotia Mocatta.

The bullion bank notes how the Dollar gold price yesterday recorded "an outside day" on its candle-stick chart, starting above Friday's finish but ending beneath Friday's low.

Also spotting "key reversals in riskier assets such as the Euro and the S&P500," today's market-note from Japanese metals conglomerate Mitsui agrees that "the yellow metal [could have] put in a short-term top."

"We could be forming a topping pattern but...it is early days and nowhere near formed yet," says Phil Smith at Reuters Technical in Beijing.

The People's Bank of China today acted on its weekend promise of "greater flexibility" in the Chinese Yuan, raising its target exchange rate to the Dollar by 0.2%.

Gold priced in Yuan slipped to a 1-week low beneath CNY 270 per gram, almost 2% below Friday's new all-time record.

The US Dollar meantime pushed both the Euro and Sterling down to 1-week lows on the currency market.

UK and Eurozone investors wanting to buy gold today saw the price recover one-third of Monday's 1.9% drop, trading at £842 and €1008 per ounce respectively.

"The World Cup, Wimbledon and the emergency budget...Market professionals have plenty of excuses to sit on the sidelines at the moment – and they are taking it," says the FT's Alpha blog, noting that London's most actively traded stock on Tuesday morning was Stanelco, "a sub-penny share bioplastics group that recently had to go cap in hand to its shareholders for a cash injection."

Ahead of the weekend's G20 meeting in Toronto, Tuesday meantime brought the UK's new coalition government's emergency budget, plus the start of the Federal Reserve's two-day meeting on US monetary policy.

"With most analysts focused on the first rate hike coming in the first or second quarter of 2011, it is not going to be too long before the wording changes," says Steven Barrow, chief currency strategist at Standard Bank in London.

Holding US interest rates below 0.25% for the last 18 months – and driving the real rate of interest 2% below zero after inflation – the Fed has repeatedly vowed to keep rates "exceptionally low...for an extended period."

"Not only do we think that the euro zone debt crisis can help keep yields low on a global basis," says Standard Bank's Barrow, "but the US economic data is looking the worse for wear right now – and that too could mean lower rates for longer."

By Adrian Ash
BullionVault.com

Gold price chart, no delay | Free Report: 5 Myths of the Gold Market
Formerly 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 2010

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.


© 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