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
AI Tech Stocks Buy Ratings, Levels and Valuations - 14th Apr 21
Easy 10% to 15% Overclock for 5600x, 5900x, 5950x Using AMD Ryzen Master Precision Boost Overdrive - 14th Apr 21
The Current Cannabis Sector Rally Is Pointing To Another Breakout - 14th Apr 21
U.S. Dollar Junk Bond Market The Easiest Money in History - 14th Apr 21
The SPY Is Nearing Resistance @ $410… What Is Next? - 14th Apr 21
The Curious Stock Market Staircase Rally - 14th Apr 21
Stocks are Heating Up - 14th Apr 21
Two Methods in Calculating For R&D Tax Credits - 14th Apr 21
Stock Market Minor Correction Due - 13th Apr 21
How to Feed Budgies Cucumbers - Best Vegetables Feeding for the First Time, Parakeet Care UK - 13th Apr 21
Biggest Inflation Threat in 40 Years Looms over Markets - 13th Apr 21
How to Get Rich with the Pareto Distribution - Tesco Example - 13th Apr 21
Litecoin and Bitcoin-Which Is Better? - 13th Apr 21
The Major Advantages Of Getting Your PhD Online - 12th Apr 21
Covid-19 Pandemic Current State for UK, US, Europe, Brazil Vaccinations vs Lockdown's Third Wave - 12th Apr 21
Why These Stock Market Indicators Should Grab Your Full Attention - 12th Apr 21
Rising Debt Means a Weaker US Dollar - 12th Apr 21
Another Gold Stocks Upleg - 12th Apr 21
AMD The ZEN Tech Stock - 12th Apr 21
Overclockers UK Build Quality - Why Glue Fan to CPU Heat sink Instead of Using Supplied Clips? - 12th Apr 21 -
What are the Key Capabilities You Should Look for in Fleet Management Software? - 12th Apr 21
What Is Bitcoin Gold? - 12th Apr 21
UK Covd-19 FREE Lateral Flow Self Testing Kits How Use for the First Time at Home - 10th Apr 21
NVIDIA Stock ARMED and Dangeorus! - 10th Apr 21
The History of Bitcoin Hard Forks - 10th Apr 21
Gold Mining Stocks: A House Built on Shaky Ground - 9th Apr 21
Stock Market On the Verge of a Pullback - 9th Apr 21
What Is Bitcoin Unlimited? - 9th Apr 21
Most Money Managers Gamble With Your Money - 9th Apr 21
Top 5 Evolving Trends For Mobile Casinos - 9th Apr 21
Top 5 AI Tech Stocks Investing 2021 Analysis - 8th Apr 21
Dow Stock Market Trend Forecast 2021 - Crash or Continuing Bull Run? - 8th Apr 21
Don’t Be Fooled by the Stock Market Rally - 8th Apr 21
Gold and Latin: Twin Pillars of Western Rejuvenation - 8th Apr 21
Stronger US Dollar Reacts To Global Market Concerns – Which ETFs Will Benefit? Part II - 8th Apr 21
You're invited: Spot the Next BIG Move in Oil, Gas, Energy ETFs - 8th Apr 21
Ladies and Gentlemen, Mr US Dollar is Back - 8th Apr 21
Stock Market New S&P 500 Highs or Metals Rising? - 8th Apr 21
Microsoft AI Azure Cloud Computing Driving Tech Giant Profits - 7th Apr 21
Amazon Tech Stock PRIMEDAY SALE- 7th Apr 21
The US has Metals Problem - Lithium, Graphite, Copper, Nickel Supplies - 7th Apr 21
Yes, the Fed Will Cover Biden’s $4 Trillion Deficit - 7th Apr 21
S&P 500 Fireworks and Gold Going Stronger - 7th Apr 21
Stock Market Perceived Vs. Actual Risks: The Key To Success - 7th Apr 21
Investing in Google Deep Mind AI 2021 (Alphabet) - 6th Apr 21
Which ETFs Will Benefit As A Stronger US Dollar Reacts To Global Market Concerns - 6th Apr 21
Staying Out of the Red: Financial Tips for Kent Homeowners - 6th Apr 21
Stock Market Pushing Higher - 6th Apr 21
Inflation Fears Rise on Biden’s $3.9 TRILLION in Deficit Spending - 6th Apr 21
Editing and Rendering Videos Whilst Background Crypto Mining Bitcoins with NiceHash, Davinci Resolve - 5th Apr 21
Why the Financial Gurus Are WRONG About Gold - 5th Apr 21
Will Biden’s Infrastructure Plan Rebuild Gold? - 5th Apr 21
Stocks All Time Highs and Gold Double Bottom - 5th Apr 21
All Tech Stocks Revolve Around This Disruptor - 5th Apr 21
Silver $100 Price Ahead - 4th Apr 21
Is Astra Zeneca Vaccine Safe? Risk of Blood Clots and What Side Effects During 8 Days After Jab - 4th Apr 21
Are Premium Bonds A Good Investment in 2021 vs Savings, AI Stocks and Housing Alternatives - 4th Apr 21
Penny Stocks Hit $2 Trillion - The Real Story Behind This "Road to Riches" Scheme - 4th Apr 21
Should Stock Markets Fear Inflation or Deflation? - 4th Apr 21

Market Oracle FREE Newsletter

FIRST ACCESS to Nadeem Walayat’s Analysis and Trend Forecasts

"Waning Enthusiasm" for Gold and Silver as Prices Drift Lower

Commodities / Gold and Silver 2012 Apr 18, 2012 - 07:44 AM GMT

By: Ben_Traynor

Commodities

Best Financial Markets Analysis ArticleSPOT MARKET gold bullion prices drifted lower in Wednesday morning's London trading, hitting $1640 an ounce ahead of US trading – a 1.1% fall on the week so far – while stock markets also fell and commodities were broadly flat.

Silver bullion fell as low as $31.52 per ounce – broadly in line with where it started the week.
UK government bond prices dipped – while German bunds gained as Eurozone concerns continued to focus on Spain.


"This morning, we've seen [precious metals] succumb to waning investor enthusiasm," says Marc Ground, commodities strategist at Standard Bank.

"People won't want to commit too much at this point," agrees Ronald Leung, a dealer in physical bullion at Lee Cheong Gold Dealers in Hong Kong.

"There is some [gold] buying when prices fall to the $1630-$1640 level, but the volume shrinks when prices rebound to $1660-$1670."

The daily average volume of gold bullion transferred between parties by clearing members of the London Bullion Market Association rose to 622 tonnes last month, a 3.8% gain on February, according to LBMA figures published Tuesday.

"The value of transfers [however] was broadly unchanged a $33.8 billion," the LBMA reports, "reflecting the fact that higher trading activity was offset by the fall in the gold price".

On an annual basis, the daily average volume of gold transferred was up 6.4% on March 2011.
Transfers of silver bullion meantime averaged 4889 tonnes – a 1.8% fall on February.

European stock markets traded lower Wednesday morning, with the FTSE in London down around 0.5% and Germany's DAX off 1% by lunchtime. The falls are in contrast with gains seen in Asia and Tuesday's US session. 

These rallies followed publication Tuesday of International Monetary Fund forecasts showing the IMF has revised upwards its expectations for global economic growth, though it says it still expects the Eurozone's economy to shrink.

Yields on 10-Year Spanish government bonds eased slightly to 5.8% Wednesday morning, ahead of tomorrow's auction of 2-Year and 10-Year debt.

Analysts are concerned however that Spain's struggling economy could threaten a banking crisis and compromise the government's fiscal position.

"If you look ahead, let's say the next six months, I would not be surprised if [Spanish banks] have to get some kind of European support," says Carsten Brzeski, Brussels-based senior economist at ING, adding that banks would need funds from the European Financial Stability Facility, the Eurozone's temporary bailout fund set up in 2010.

The number of non-performing loans on Spanish bank balance sheets "will have to rise when you take into account the unemployment rate and what's happening with the economy," says Andrew Bosomworth, head of portfolio management at world's largest bond fund Pimco in Munich.

"One of our concerns in Spain is to what extent contingent liabilities could pass to the central government."

In New York, hedge fund boss John Paulson – whose firm offers investors gold bullion denominated funds – has told investors he is shorting German bunds because he expects deterioration in the Eurozone will end up affecting Germany's creditworthiness, the Financial Times reports.

Here in the UK, "elevated inflation might be more persistent" than the Bank of England's Monetary Policy Committee previously expected, according to minutes published Wednesday of the MPC meeting earlier this month.

Only one MPC member voted to increase quantitative easing – down from two members last month.

The publication of the minutes – as well as that of a speech by MPC member Paul Tucker in which he describes inflation as "uncomfortably above target" – was followed by the Pound rallying against the Dollar.

The gold price in Sterling fell to £1026 per ounce by lunchtime in London – 1.9% down on where it ended last week.

UK unemployment meantime fell to 8.3% in February – down from 8.4% a month earlier – according to the International Labour Organization's 3-month unemployment data published this morning.

The majority of reserve managers at the world's central banks consider gold a more attractive investment than last year – while they are wary of Euro exposure – according to a new survey by Central Banking Publications.

By Ben Traynor
BullionVault.com

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

Editor of Gold News, the analysis and investment research site from world-leading gold ownership service BullionVault, Ben Traynor was formerly editor of the Fleet Street Letter, the UK's longest-running investment letter. A Cambridge economics graduate, he is a professional writer and editor with a specialist interest in monetary economics.(c) BullionVault 2012

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