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
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
Stock Maket Trading Lesson - How to REALLY Trade Markets - 26th Nov 21
SILVER Price Trend Analysis - 26th Nov 21
Federal Reserve Asks Americans to Eat Soy “Meat” for Thanksgiving - 26th Nov 21
Is the S&P 500 Topping or Just Consolidating? - 26th Nov 21
Is a Bigger Drop in Gold Price Just Around the Corner? - 26th Nov 21
Financial Stocks ETF Sector XLF Pullback Sets Up A New $43.60 Upside Target - 26th Nov 21
A Couple of Things to Think About Before Buying Shares - 25th Nov 21
UK Best Fixed Rate Tariff Deal is to NOT FIX Gas and Electric Energy Tariffs During Winter 2021-22 - 25th Nov 21
Stock Market Begins it's Year End Seasonal Santa Rally - 24th Nov 21
How Silver Can Conquer $50+ in 2022 - 24th Nov 21
Stock Market Betting on Hawkish Fed - 24th Nov 21
Stock Market Elliott Wave Trend Forecast - 24th Nov 21
Your once-a-year All-Access Financial Markets Analysis Pass - 24th Nov 21
Did Zillow’s $300 million flop prove me wrong? - 24th Nov 21
Now Malaysian Drivers Renew Their Kurnia Car Insurance Online With Fincrew.my - 24th Nov 21
Gold / Silver Ratio - 23rd Nov 21
Stock Market Sentiment Speaks: Can We Get To 5500SPX In 2022? But 4440SPX Comes First - 23rd Nov 21
A Month-to-month breakdown of how Much Money Individuals are Spending on Stocks - 23rd Nov 21
S&P 500: Rallying Tech Stocks vs. Plummeting Oil Stocks - 23rd Nov 21
Like the Latest Bond Flick, the US Dollar Has No Time to Die - 23rd Nov 21
Why BITCOIN NEW ALL TIME HIGH Changes EVERYTHING! - 22nd Nov 21
Cannabis ETF MJ Basing & Volatility Patterns - 22nd Nov 21
The Most Important Lesson Learned from this COVID Pandemic - 22nd Nov 21
Dow Stock Market Trend Analysis - 22nd Nov 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Gold Follows Euro Lower On German Economic Confidence Numbers

Commodities / Gold & Silver Apr 24, 2008 - 07:34 AM GMT

By: Adrian_Ash

Commodities SPOT GOLD slipped to a fresh three-week low beneath $898 per ounce early Thursday in London , as a sharp bounce in the US Dollar forced a drop in equities, crude oil and the Euro.

Short-term US Treasury bonds also capped their eight-day losing streak, however, pushing the two-year yield down to 2.20%.


"There is a raft of data out of the US later today," notes Mitsui, the precious metals dealer, "including jobless claims, durable goods orders and new home sales figures.

"Any improvement in these figures would see the Euro – and as a result, the precious metals – test the downside again."

Precious metals ticked lower against the Dollar in early trade, but the European currency fell faster still on the weakest reading of German business confidence in more than two years.

Versus the US Dollar, the Euro fell almost 1.5¢ to a one-week low of $1.5720 after the Ifo Institute's survey of 7,000 firms pointed to "a slower pace of business activity" in the world's third-largest economy.

Following this week's marked decline in Belgian, French and Dutch business confidence, one currency analyst called the German data "pivotal" for the Euro.

Today's 1.1% drop in the single currency pushed the Gold Price in Euros higher by 1.3% from yesterday's low, recorded at what looks increasingly like key support near €565 per ounce. ( See this level in Euro Gold Prices here... )

Overnight in India – destination for 20% of all gold sold in 2007 – physical gold dealers reported strong sales ahead of next week's Akshaya Thrithiya festival.

This auspicious "festival of lights", marked across the southern states and cities of Kerala, Bangalore and Chennai, saw a surge in Gold Buying in both 2006 and 2007.

But so far in '08, jewelry buyers have been put off by record-high Gold Prices vs. the Indian Rupee.

"People purchased what they wanted yesterday," said on gold importer in New Delhi to Reuters today. "Now they want more dips."

"Demand is there, but it's not huge like we saw last year," agrees Mahendra Bafna, head of Riddisiddhi Bullions in Mumbai.

Here in London this morning, the FTSE stock index fell 1.9% to a one-week low as housing and finance shares slumped after Persimmon – a major home-builder – said "the unprecedented tightening in the mortgage market has caused lower [ UK ] sales volumes and increased cancellation rates."

Brent crude oil ticked 0.5% lower to slip below $116 per barrel, but European coal prices for leapt to a new record high, driven by a 58% rise in freight rates since the end of January according to a Bloomberg report.

Copper prices also jumped on news of fast-depleting stockpiles in London , New York and Shanghai , which shrank by one quarter since the start of the year. The world's biggest mining group, BHP Billiton, saw its Australian copper output fall 8% between Jan. and April, leaving the market "short" according to an analyst at Sucden Metals in London .

In soft commodities, rice futures climbed to a new all-time high overnight, even though Japan – which claims to be self-sufficient in this staple grain, a tenet of national pride – said it will delay seeking new imports until prices ease off.

"It is better for Japan not to import rice while a price rally continues," said the head of Unipac Grain in Tokyo to Bloomberg, "because Japan doesn't need supply from abroad."

World rice costs have doubled in the last 12 months.

The Indian government is now considering export curbs to tackle inflation in its domestic rice prices.

Overall, the cost of living in India is rising at a three-year record of 7.4% annually.

By Adrian Ash
BullionVault.com

Gold price chart, no delay | Free Report: 5 Myths of the Gold Market
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 2008

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.

Adrian Ash Archive

© 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