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
Silver Price 2021 Roadmap - 22nd Jan 21
Why Biden Wants to Win the Fight for $15 Federal Minimum Wage - 22nd Jan 21
Here’s Why Gold Recently Moved Up - 22nd Jan 21
US Dollar Decline creates New Sector Opportunities to Trade - 22nd Jan 21
Sandisk Extreme Micro SDXC Memory Card Read Write Speed Test Actual vs Sales Pitch - 22nd Jan 21
NHS Recommends Oximeter Oxygen Sensor Monitors for Everyone 10 Months Late! - 22nd Jan 21
DoorDash Has All the Makings of the “Next Amazon” - 22nd Jan 21
How to Survive a Silver-Gold Sucker Punch - 22nd Jan 21
2021: The Year of the Gripping Hand - 22nd Jan 21
Technology Minerals appoints ex-BP Petrochemicals CEO as Advisor - 22nd Jan 21
Gold Price Drops Amid Stimulus and Poor Data - 21st Jan 21
Protecting the Vulnerable 2021 - 21st Jan 21
How To Play The Next Stage Of The Marijuana Boom - 21st Jan 21
UK Schools Lockdown 2021 Covid Education Crisis - Home Learning Routine - 21st Jan 21
General Artificial Intelligence Was BORN in 2020! GPT-3, Deep Mind - 20th Jan 21
Bitcoin Price Crash: FCA Warning Was a Slap in the Face. But Not the Cause - 20th Jan 21
US Coronavirus Pandemic 2021 - We’re Going to Need More Than a Vaccine - 20th Jan 21
The Biggest Biotech Story Of 2021? - 20th Jan 21
Biden Bailout, Democrat Takeover to Drive Americans into Gold - 20th Jan 21
Pandemic 2020 Is Gone! Will 2021 Be Better for Gold? - 20th Jan 21
Trump and Coronavirus Pandemic Final US Catastrophe 2021 - 19th Jan 21
How To Find Market Momentum Trades for Explosive Gains - 19th Jan 21
Cryptos: 5 Simple Strategies to Catch the Next Opportunity - 19th Jan 21
Who Will NEXT Be Removed from the Internet? - 19th Jan 21
This Small Company Could Revolutionize The Trillion-Dollar Drug Sector - 19th Jan 21
Gold/SPX Ratio and the Gold Stock Case - 18th Jan 21
More Stock Market Speculative Signs, Energy Rebound, Commodities Breakout - 18th Jan 21
Higher Yields Hit Gold Price, But for How Long? - 18th Jan 21
Some Basic Facts About Forex Trading - 18th Jan 21
Custom Build PC 2021 - Ryzen 5950x, RTX 3080, 64gb DDR4 Specs - Scan Computers 3SX Order Day 11 - 17th Jan 21
UK Car MOT Covid-19 Lockdown Extension 2021 - 17th Jan 21
Why Nvidia Is My “Slam Dunk” Stock Investment for the Decade - 16th Jan 21
Three Financial Markets Price Drivers in a Globalized World - 16th Jan 21
Sheffield Turns Coronavirus Tide, Covid-19 Infections Half Rest of England, implies Fast Pandemic Recovery - 16th Jan 21
Covid and Democrat Blue Wave Beats Gold - 15th Jan 21
On Regime Change, Reputations, the Markets, and Gold and Silver - 15th Jan 21
US Coronavirus Pandemic Final Catastrophe 2021 - 15th Jan 21
The World’s Next Great Onshore Oil Discovery Could Be Here - 15th Jan 21
UK Coronavirus Final Pandemic Catastrophe 2021 - 14th Jan 21
Here's Why Blind Contrarianism Investing Failed in 2020 - 14th Jan 21
US Yield Curve Relentlessly Steepens, Whilst Gold Price Builds a Handle - 14th Jan 21
NEW UK MOT Extensions or has my Car Plate Been Cloned? - 14th Jan 21
How to Save Money While Decorating Your First House - 14th Jan 21
Car Number Plate Cloned Detective Work - PY16 JXV - 14th Jan 21
Big Oil Missed This, Now It Could Be Worth Billions - 14th Jan 21
Are you a Forex trader who needs a bank account? We have the solution! - 14th Jan 21
Finetero Review – Accurate and Efficient Stock Trading Services? - 14th Jan 21

Market Oracle FREE Newsletter

FIRST ACCESS to Nadeem Walayat’s Analysis and Trend Forecasts

Gold Trend Choppy and Indecisive

Commodities / Gold and Silver 2010 Oct 21, 2010 - 08:16 AM GMT

By: Adrian_Ash

Commodities

Best Financial Markets Analysis ArticleTHE PRICE OF BOTH gold and silver was little changed against the US Dollar by Thursday lunchtime in London, evening out amid "a very choppy and volatile market" according to one dealer.

Asian equities closed the day lower, failing to pick up yesterday's 1.2% gain in US stocks.


European shares rose towards 6-month highs, however, as crude oil held steady above $82 per barrel and base metals rose.

"Traders [overnight] took advantage of the dip in gold prices and short-covered," says a Hong Kong dealer, but the resulting rallies were "minimal and short-lived."

"This is a very indecisive market struggling with two opposite forces," says Swiss refiner MKS's finance division – "long liquidation and bargain-buying."

Over on the currency market the Dollar rallied but the Euro rose faster, hitting $1.4050 – and also jumping to a 6-month high vs. the British Pound – after US Treasury secretary Tim Geithner told the Wall Street Journal that the world's major reserve currencies are "roughly in alignment" but the Chinese Yuan is "undervalued by any measure".

The gold price thus slipped further in Euros on Thursday morning – briefly dipping to a two-week low beneath €30,850 per kilo – but recovered from an early dip versus the Dollar, Sterling and Japanese Yen.

Preparing for this weekend's G20 summit of leading economic powers in Seoul, "We would like countries to move toward a set of simple norms on exchange rate policy," said Geithner, inviting trade-surplus nations "to put a little more flesh" on their plans for helping the global economy to "rebalance".

New data today showed Japanese industrial activity contracting in Sept., while Germany's manufacturing and service sectors both expanded sharply.

Berlin today raised Germany's forecast GDP growth for 2010 to 3.4%.

UK Retail Sales meantime showed their second monthly fall in succession, and new mortgage approvals also fell.

Raising bank-deposit interest rates to 2.5% on Tuesday, Beijing overnight reported a slight slowdown in China's GDP growth for the July-Sept quarter., slipping to 9.6% year-on-year from 10.3%.

China's rate of consumer-price inflation rose to 3.6% last month, the official statistics agency added, with nine-tenths of the rise driven by food and housing costs according to a spokesman.

"Today's [US] data flow could have a significant impact across the precious metals complex," says Standard Bank's London team in a note, "with gold and silver particularly vulnerable" to any signs of improvement.

US consultancy Medley Global Advisors said Wednesday that the Federal Reserve will create $500 billion over the next 6 months, using the money to buy Treasury bonds and so push longer-term interest rates lower still.

"We believe that a gold price of $1350 is consistent with $500bn of quantitative easing," says Standard.

"Whenever you print money, people look for a refuge – gold," said financial author and money-manager Jim Rogers, former hedge-fund partner of George Soros, in an interview last week.

"If the central bank prints enough money," he joked to CNBC this morning, "the [Dow Jones index] could go to 50,000 but we'd all still be losing money in stocks, because the money would be worthless."

US Treasury bonds were little changed as the start of New York trading drew near on Thursday, but the rise in UK gilts continued from yesterday's coalition government "austerity" budget review.

Ten-year gilt yields fell as prices rose, dropping towards August's record-low of 2.92%.

"The risk of renewed quantitative easing makes Sterling a sell," says a note from UBS analysts, after UK chancellor George Osborne told the BBC that his new austerity budget has "some caution built in to it, and there is of course the freedom for the Bank of England to deploy monetary-policy tools as well."

In sharp contrast, German chancellor Angela Merkel yesterday called for central bankers to "be thinking about exit strategies" from current liquidity support.

"The spread [for 'swap' rates between gilt yields and German Bunds] is the widest since the advent of the Euro," notes Lloyds TSB's currency strategist Adrian Schmidt, thanks to UK interest rates falling as Euro rates hold steady.
 
Wednesday's UK money-supply data "showed an all-time low rate of growth," he adds – quoted by the FT's Alpha blog – and the Bank of England's latest minutes "showed a vote...and some sympathy for the idea of QEII."

By Adrian Ash

BullionVault.com

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

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

6 Critical Money Making Rules