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
The Most Exciting Biotech Stock Of The Year? - 17th May 21
Gold Mining Stocks Fundamentals - 17th May 21
Junior Gold Miners Should be Rallying – What’s Holding Them Back? - 17th May 21
Stock Market - Should You Be In Cash Right Now? - 17th May 21
Learning the Financial Markets - 17th May 21
INVESTING IN HIGH RISK TECH STOCKS - ALL OR NOTHING - 16th May 21
Is Stock Market Selling Madness About Over? - 16th May 21
Crypto Bubble Bursts! Nicehash Suspends Coinbase Withdrawals, Bitcoin, Ethereum Bear Market Begins - 16th May 21
Budgies Birds of Paradise Indoor Grape Vine Singing, Chirping and Flying Parakeets Fun 3D VR180 UK - 16th May 21
Wall Street Roiled by Hot Inflation Data: Is This REALLY “Transitory”? - 16th May 21
Inflation Going Stag - 16th May 21
CHIA Coins After 1st Week of Plotting 140 Plot 14tb Farm. Crunching the Numbers How to Win - 15th May 21
Tips to Create the Best Cross-Functional Teams - 15th May 21
Gold: Lose a Battle to Win the War - 14th May 21
Are You Invested in America’s “Two-Hour Boom” Fast Shipping Stocks? - 14th May 21
Gold to Benefit from Mounting US Debt Pile - 14th May 21
6 Solid Signs You Should Have Your Smart Device Repaired Right Away - 14th May 21
Ways to Finance Your Business Growth - 14th May 21
Cathy Wood Ark Invest Funds Bubble BURSTS! ARKK, ARKG, Tesla Entering Severe Bear Market - 13th May 21
How Much CHIA Coins Profit from 100 Plot 10tb Farm? Hard Drive Space Mining - 13th May 21
Stock Market Bulls Getting Caught in the Whirlwind - 13th May 21
Legoland Windsor Mini land and Sky Train Virtual Tour in VR 360 - UK London Holidays 2021 - 13th May 21
Peak Growth and Inflation - 13th May 21
Where’s The Fed? Watch Precious Metals For Signs Of Inflation Panic - 13th May 21
Coronavius Covid-19 in Italy in August 2019! - 13th May 21
India Covid Apocalypse Heralds Catastrophe for Pakistan and Bangladesh - 13th May 21
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 Chinese and Indian Demand Surge with Economies

Commodities / Gold and Silver 2010 Dec 10, 2010 - 08:26 AM GMT

By: Adrian_Ash

Commodities

Best Financial Markets Analysis ArticlePHYSICAL WHOLESALE MARKET prices to buy gold held firm in London on Friday morning, nearing the end of what one London trader called “another roller-coaster week” some 1.7% lower for Dollar and Sterling investors but little changed vs. the single Euro currency.

Friday morning's London Gold Fix, set at $1390 per ounce, was some 2.5% below Tuesday's new all-time record high.


Japanese equities meantime ended the week unchanged, but Germany's Dax index crept back towards two-and-a-half year highs, while Wall Street's Nasdaq tech-stock index was set to open near 3-year highs.

Major-economy bonds steadied, holding yields just below this week's 6-month highs, as US Treasuries headed for their worst weekly loss of 2010.

“We expect sellers of the metal near $1400,” says gold bullion market-market Scotia Mocatta's short-term trading note.

“The US interest-rate decision [next Weds] could give direction to the US currency and thus most probably have an effect on gold’s trajectory,” says Swiss refinery group MKS's trading desk.

“There has been an underlying shift to gold as an alternative currency,” said a London  gold bullion trader to Reuters, “with both the Dollar and Euro weak, and a lack of confidence in global banking.”

But while “a general distaste for and distrust of fiat currencies and fears of future inflation [has] intensified investors’ desire to hold physical commodities,” says Mitsui analyst David Jollie, “the description of gold as a currency rather than a commodity seems overblown, given the similar performance of copper.”

Both copper and gold prices have risen around 28% so far this year. A group of London metal traders last month wrote to City watchdog the FSA last month to warn that licensing exchange-traded investment funds – backed by physical copper stockpiles – may mean “approving the next financial bubble.”

J.P.Morgan has already received US regulatory approval for its forthcoming copper ETF, with competing products expected from BlackRock iShares, Deutsche Bank and ETFSecurities amongst others.

“Output shortages of 800,000 metric tons may occur in 2011 and in 2012, compared with a balanced market this year, “ says Bloomberg, quoting Trafigura Beheer BV, “which considers itself the second-largest trader of industrial metals.”

New data from China today showed copper imports to the world's fastest-growing economy rising 29% last month from a 1-year low, while its crude oil imports rose 26% from Oct.
Crude oil prices today ticked higher above $88 per barrel, while copper held near Thursday's new record highs.

Silver prices briefly touched $29 an ounce for the second day running.

Rubber prices hit fresh 30-year highs. Heavy rains in southern Australia led ANZ Bank to warn that 60% of the country's wheat crop may be cut to animal-feed quality.

“We think the threat of bubbles is greatest [not in emerging economies but] in commodity markets,” says Capital Economics’ chief international economist in London, Julian Jessop.

“The prices of industrial metals and agricultural commodities have already returned to the pre-crisis levels of 2008 – levels which were only achieved after the world economy had been booming for four years.”

Already the world's No.1 importer of copper and the No.1 consumer of energy, rice and wheat, China may become the world's No.1 corn importer within five years, reckon analysts at Rabobank, as rising meat consumption demands increased pig and poultry production.

Gold bullion imports to China have jumped 5-fold so far this year, reaching more than 200 tonnes according to the Shanghai Gold Exchange.

Now the world's largest single gold mining nation, China does not allow large-scale exports of its near-300 tonne output.

"Tighter global monetary policy is bad for gold, and this is tighter monetary policy,” said Japanese conglomerate Mitsubishi's chief analyst Matthew Turner today, commenting on China's latest increase in banking reserve ratios – the sixth such hike of 2010.

“But [it's] only slightly [tighter], and in one part of the world, so the impact is not huge.”

Demand to buy gold from Indian clients was the strongest mid-week since late Oct., just before the peak Diwali festival, Swiss bank UBS's London office reported today.

Back then, “Gold was trading around $1320," notes UBS chief analyst Edel Tully. Gold prices this week dipped below $1380 an ounce.

New data today showed India's industrial production growing by nearly 11% in Oct. from a year earlier. Twenty-nine economists surveyed by Bloomberg News forecast an average rise of 8.5%.

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