Most Popular
1. THE INFLATION MONSTER is Forecasting RECESSION - Nadeem_Walayat
2.Why APPLE Could CRASH the Stock Market! - Nadeem_Walayat
3.The Stocks Stealth BEAR Market - Nadeem_Walayat
4.Inflation, Commodities and Interest Rates : Paradigm Shifts in Macrotrends - Rambus_Chartology
5.Stock Market in the Eye of the Storm, Visualising AI Tech Stocks Buying Levels - Nadeem_Walayat
6.AI Tech Stocks Earnings BloodBath Buying Opportunity - Nadeem_Walayat
7.PPT HALTS STOCK MARKET CRASH ahead of Fed May Interest Rate Hike Meeting - Nadeem_Walayat
8.50 Small Cap Growth Stocks Analysis to CAPITALISE on the Stock Market Inflation -Nadeem_Walayat
9.WE HAVE NO CHOICE BUT TO INVEST IN STOCKS AND HOUSING MARKET - Nadeem_Walayat
10.Apple and Microsoft Nuts Are About to CRACK and Send Stock Market Sharply Lower - Nadeem_Walayat
Last 7 days
AI Tech Stock PORTFOLIO NAME OF THE GAME - 29th June 22
Rebounding Crude Oil Gets Far Away from the Bearish Side - 29th June 22
UK House Prices - Lets Get Jiggy With UK INTEREST RATES - 28th June 22
GOLD STOCKS ARE WORSE THAN GOLD - 28th June 22
This “Bizarre” Chart is Wrecking the Stock Market - 28th June 22
Recession Question Answered - 28th June 22
Technical Analysis: Why You Should Expect a Popularity Surge - 28th June 22
Have US Bonds Bottomed? - 27th June 22
Gold Junior Miners: A Bearish Push Is Coming to Move Them Lower - 27th June 22
Stock Market Watching Out - 27th June 22
The NEXT BIG EMPIRE WILL BE..... CANZUK - 25th June 22
Who (or What) Is Really in Charge of Bitcoin's Price Swings? - 25th June 22
Crude Oil Price Forecast - Trend Breaks Downward – Rejecting The $120 Level - 25th June 22
Everyone and their Grandma is Expecting a Big Stocks Bear Market Rally - 23rd June 22
The Fed’s Hawkish Bite Left Its Mark on the S&P 500 Stocks - 23rd June 22
No Dodging the Stock Market Bullet - 23rd June 22
How To Set Up A Business To Better Manage In The Free Market - 23rd June 22
Why Are Precious Metals Considered A Good Investment? Find Out Here - 23rd June 22
UK House Prices and the Inflation Mega-trend - 22nd June 22
Sportsbook Betting Reviews: How to Choose a Sportsbook- 22nd June 22
Looking to buy Cannabis Stocks? - 22nd June 22
UK House Prices Momentum Forecast - 21st June 22
The Fed is Incompetent - Beware the Dancing Market Puppet - 21st June 22
US Economy Headed for a Hard Landing - 21st June 22
How to Invest in EU - New Opportunities Uncovered - 21st June 22
How To Protect Your Assets During Inflation - 21st June 22
AI Tech Stocks Current State, Is AMAZON a Dying Tech Giant? - 20th June 22
Gold/Gold miners fundamental checkup - 20th June 22
Personal Finance Tips: How To Get Out Of A Tough Financial Situation - 20th June 22
UK House Prices Relative to GDP Growth - 19th June 22
Will Global Markets Be Pushed Deeper Into Crisis Event By The US Fed? - 19th June 22
Useful Things You Need To Know About Tweezer Top Candlestick Pattern - 19th June 22

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Quiet Gold Market Waiting for German Big Bang

Commodities / Gold and Silver 2012 Aug 14, 2012 - 11:39 AM GMT

By: Ben_Traynor

Commodities

SPOT MARKET gold prices traded above $1610 an ounce Tuesday morning in London, slightly below where they started the week, while European markets edged higher following news of better-than-expected German economic growth.

Silver prices briefly rallied back above $28 per ounce before retreating, while other commodities were similarly flat on the day.


"Despite wide daily ranges for the past few weeks due to thin liquidity, the [gold] market remains pretty quiet," says a note from Swiss bullion refiner MKS.

A day earlier, gold prices fell 1% as the Euro edged lower towards the end of Monday's trading, after news of a second legal challenge to the creation of the Eurozone's €500 billion permanent bailout fund the European Stability Mechanism.

Berlin economics professor Markus Kerber submitted an argument that the German Constitutional Court should delay a preliminary decision on the ESM, currently due for September 12, until the European Court of Justice rules on a similar complaint referred to it by the Supreme Court of Ireland.

The German Constitutional Court issued a statement Tuesday saying it does not plan to delay its ruling.

Germany's economy meantime grew by 0.3% in the second quarter of the year – slower than in Q1, but stronger than many analysts expected – according to an initial estimate of gross domestic product published Tuesday.

"The German economy is fundamentally in good structural shape," says Commerzbank chief economist Joerg Kraemer.

"But [it] can't decouple from the recession in the Eurozone, plus the global economy has also shifted down a gear."

French GDP was flat at zero percent in Q2, although many analysts were forecasting a slight contraction.

GDP for the Eurozone as a whole meantime shrank by 0.2% in the second quarter, data from Eurostat show.

"We do not think that Germany on its own can keep the entire Eurozone afloat," says Aline Schuiling, senior economist at ABN Amro.

Here in the UK, consumer price inflation ticked higher last month to 2.6% – up from 2.4% in June – official figures published Tuesday show.

"It is important not to read too much into one month's inflation figures," says Howard Archer at IHS Global Insight.

"The overall trend in inflation currently remains down...nevertheless the move back up in consumer price inflation in July does raise concern that it may not come down as quickly as hoped for."

"Concerns over inflation and potential monetary easing bode well for gold," adds Barclays analyst Suki Cooper.

"[But] the metal is missing the support of a solid floor."

Over in India, traditionally the world's biggest gold buying nation, imports of gold bullion in 2012 could be down 30% compared to last year, according to Bombay Bullion Association president Prithviraj Kothari.

"Demand is very dull even though the festive season is just days away," says Kothari.

"Even jewelers are opting to keep lower inventory," adds one dealer in Mumbai.

"They are worried about slowing rural demand due to a drought."

"Gold prices are holding up very well in the light of weak demand from the jewelry sector and from investors," says Eugen Weinberg, head of commodities research at Commerzbank.

"That bodes well for a price increase that we expect for the end of the third quarter and the fourth quarter."

"Policy expectations will determine the bulk of gold's performance," adds a note from UBS.

"Gold needs a 'big bang' to reignite investor interest, the likely culprit to be policy response from central banks, with US action the key."

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