Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
Dow Stock Market Trend Forecast Into Mid 2022 - 4th Dec 21
INVESTING LESSON - Give your Portfolio Some Breathing Space - 4th Dec 21
Don’t Get Yourself Into a Bull Trap With Gold - 4th Dec 21
GOLD HAS LOTS OF POTENTIAL DOWNSIDE - 4th Dec 21
4 Tips To Help You Take Better Care Of Your Personal Finances- 4th Dec 21
What Is A Golden Cross Pattern In Trading? - 4th Dec 21
Bitcoin Price TRIGGER for Accumulating Into Alt Coins for 2022 Price Explosion - Part 2 - 3rd Dec 21
Stock Market Major Turning Point Taking Place - 3rd Dec 21
The Masters of the Universe and Gold - 3rd Dec 21
This simple Stock Market mindset shift could help you make millions - 3rd Dec 21
Will the Glasgow Summit (COP26) Affect Energy Prices? - 3rd Dec 21
Peloton 35% CRASH a Lesson of What Happens When One Over Pays for a Loss Making Growth Stock - 1st Dec 21
Stock Market Sentiment Speaks: I Fear For Retirees For The Next 20 Years - 1st Dec 21 t
Will the Anointed Finanical Experts Get It Wrong Again? - 1st Dec 21
Main Differences Between the UK and Canadian Gaming Markets - 1st Dec 21
Bitcoin Price TRIGGER for Accumulating Into Alt Coins for 2022 Price Explosion - 30th Nov 21
Omicron Covid Wave 4 Impact on Financial Markets - 30th Nov 21
Can You Hear It? That’s the Crowd Booing Gold’s Downturn - 30th Nov 21
Economic and Market Impacts of Omicron Strain Covid 4th Wave - 30th Nov 21
Stock Market Historical Trends Suggest A Strengthening Bullish Trend In December - 30th Nov 21
Crypto Market Analysis: What Trading Will Look Like in 2022 for Novice and Veteran Traders? - 30th Nov 21
Best Stocks for Investing to Profit form the Metaverse and Get Rich - 29th Nov 21
Should You Invest In Real Estate In 2021? - 29th Nov 21
Silver Long-term Trend Analysis - 28th Nov 21
Silver Mining Stocks Fundamentals - 28th Nov 21
Crude Oil Didn’t Like Thanksgiving Turkey This Year - 28th Nov 21
Sheffield First Snow Winter 2021 - Snowballs and Snowmen Fun - 28th Nov 21
Stock Market Investing LESSON - Buying Value - 27th Nov 21
Corsair MP600 NVME M.2 SSD 66% Performance Loss After 6 Months of Use - Benchmark Tests - 27th Nov 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Gold Takes Well Needed Two Week Rest, Long-Term Uptrend Safe

Commodities / Gold and Silver 2012 Sep 27, 2012 - 10:20 AM GMT

By: Ben_Traynor

Commodities

Best Financial Markets Analysis ArticleWHOLESALE-MARKET prices to buy gold eased $5 in London on Thursday after an overnight rally to $1760 per ounce.

The Euro currency also eased lower after rallying to $1.29 – some 2¢ below the 5-month high hit a fortnight ago – as Spain was set to unveil its latest government budget cuts and Italy's economy minister said Rome has no plans to request bail-out help.



Asian and European stock markets rose and major-economy "safe haven" bonds ticked lower.

US crude oil rallied back above $90 per barrel. Silver prices held in a tight range above$34.00 per ounce.

"Wednesday trading was dominated by a strong US Dollar," says a note from German universal bank Commerzbank. "It pushed [all] precious metals lower."

Although prices to buy gold "recovered almost all of [their] losses on Wednesday," says the latest technical analysis from London market-maker Scotia Mocatta's New York team, "gold broke through the bottom of the recent range on an intraday basis.

"This is near term bearish, but...we could retreat to $1712 without damaging the longer term uptrend. We believe that gold will try to test this level."

"Gold [on Wednesday] finally had a decent flushout," says the Asian office of Swiss refiner and finance group MKS.

Yesterday's "rebound off [2-week] lows suggests there are still players waiting to buy gold on the dips.

"This was a healthy correction to clean out weak positioning, and long term probably just what the market needed."

On the supply side today, Bloomberg News reports that 39% of gold mining output in South Africa – the world's former #1 producer – has been closed after fresh wildcat strikes hit gold majors AngloGold and Goldfields.

New wage demands handed to managers at Anglo yesterday ask for 16,000 to 18,500 Rand per month. Rock drill operators currently average some 10,000 Rand according to local press – equivalent to US$1200.

The world's third largest gold mining firm, Anglo has now suspended at all of its South African operations according to the Independent Online.

Over in platinum – where South Africa remains the world's #1 producer, and where this year's "strike season" first broke – the CEO of Anglo American Platinum said Wednesday that Amplats "will not negotiate" with workers on illegal strike at its key Rustenburg operation.

Last week, wildcat strikers won a 22% raise from platinum producer Lonmin, whose Marikana mine saw 34 workers killed by police in rioting this month.

"There's no question it has caused massive damage to us and incredible damage to South Africa's mining sector," says Albert Wocke, associate professor at University of Pretoria's Gordon Institute of Business Science.
 
With formal unions, all closely tied to the ruling ANC party, cut out of Lonmin's negotiations, "The government needs to step up and reassure investors," says Wocke.

"We have got an unstable, almost unpredictable regulatory regime."

Political analyst William Gumede, also speaking to the LA Times, warns that "The biggest red flag is that people might actually start losing their trust in democracy as a protective mechanism."

After the deaths at Marikana , "I think the police will feel constrained," Gumede adds, "in how they deal with these strikes now."

Meantime in Europe, the Spanish government was widely expected to announce sharp new cuts to its 2013 budget, ignoring protests earlier this week and striving to avoid tighter demands from international lenders if – or when – Madrid makes a formal request for help.

"Italy is doing, I believe, a very good job in reforming its economy and without the need for any extra help," said Rome's economy economy Vittorio Grilli last night, after meeting with Germany's central bank president Jens Weidmann.

"At this point, it is not within any plan of the Italian government to apply for any programme. We are solving Italian problems within our government mandate."

Reuters meantime reports that "tensions have risen in recent weeks" between Greece's three official-sector lenders.

After the European Central Bank last week moved to start buying more weak-Eurozone debt in the bond markets, "The problem is between the IMF and the European Union," says an anonymous Greek official, blaming the International Monetary Fund for wanting to impose harsher budget cuts on Athens to try and reduce its debt burden more quickly.

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 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