Author Archive: BullionVault

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Gold’s Outlook For 2013

| November 30, 2012 | Articles: General

In his weekly market commentary, Adrian Ash from BullionVault looks at the prospects of 2013 given today’s situation and this year’s  evolution in the gold market. The piece is short but powerful. It contains valuable insights. Unlike the last 5 years, there has been no panic or crash in the broader financial markets in 2012. Indeed, stock markets globally have risen almost as well as gold since New Year. That breaks a 7-year run of gold beating the US stock market hands down. Gold has only underperformed the S&P500 twice since 1999. It has risen 19.1% per year on average since 2004, versus the US stock market’s 3.8% average rise. […]

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Importers of Gold Digesting Higher Prices with Sentiment Driven by Fiscal Cliff

Spot market gold prices hovered just below $1738 an ounce Monday morning in London, close to three-week highs, while stocks and commodities were broadly flat and the Euro traded near two-month lows against the Dollar, as the US and Greece both contemplated upcoming fiscal difficulties. Silver prices traded around $32.70 an ounce, also near three-week highs. Bullion importers in India, meantime, which sees the celebration of Diwali tomorrow, slowed their purchases of gold Friday as the Rupee weakened and gold prices rose, newswire Reuters reports. “Jewelry makers may have to wait before they come back to buy again,” says one physical bullion dealer in Hong Kong. “People are digesting the rebound in prices.” “Worries about the […]

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Gold & Silver Rise as China’s Long-Term Demand Forecast to Keep Growing

Wholesale prices to buy gold rose to 7-session highs in London on Thursday morning, touching $1726 per ounce even as new data showed US employment rising at its fastest pace since February. The private-sector ADP payrolls report said the US added 158,000 jobs in October. Earlier data from the manufacturing sector in China, the world’s #2 gold consumer, showed its slowdown to be easing. However, “Over 17% of survey respondents reported a fall in the volume of new export orders,” said the new Purchasing Managing Index report from HSBC/Markit Economics, “and just under 10% noted an increase.” Two-thirds of Chinese businesses reporting quarterly results to the stock market have seen a […]

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Big Jump in London Gold Trading

Big Jump in London Gold Trading

Gold trading in London – heart of the world’s wholesale bullion market – leapt in September. How come? “The continued economic uncertainty in the Eurozone and US, the end of the holiday period and the start of the Indian festival season boosted clearing turnover,” says trade body the London Bullion Market Association, releasing the new data to members on Thursday. But matched by a sharp rise in the size of gold-backed trust funds traded on the stock market (ETFs), these latest figures really suggest strong interest from hedge funds, investment banks and other institutions around the US Federal Reserve’s announcement of QE3, we believe. Why QE3 as the catalyst? Because […]

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Gold Prices Rally After US GDP, But Still Record Third Straight Weekly Loss

Gold Prices hovered above $1700 per ounce throughout Friday morning in London, after yesterday’s rally reversed overnight, while European stock markets traded lower this morning following losses in Asia, ahead of the release of US GDP data later today. “The trend remains bearish so long as gold trades below $1723,” says the latest note from Scotiabank technical analyst Russell Browne. “People are still looking a bit at the downside rather than the upside for the time being, waiting for it to break $1700,” adds Ronald Leung, director at Lee Cheong Gold Dealers in Hong Kong. Silver Prices traded just above $31.70 per ounce for most of the morning, 1.2% down […]

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Monetary Policy Pause sees Gold Fall through $1710

Monetary Policy Pause sees Gold Fall through $1710

Gold Bullion fell below $1710 per ounce ahead of Tuesday’s US session, its lowest level in over six weeks, as stocks and commodities also fell and the Dollar rallied, with two weeks to go until the US presidential election. Silver Bullion fell through $32 an ounce to hits its lowest level since the first week of September. “You’ve had QE priced in and what we’re seeing now is a bit of a retracement following that,” says Daniel Brebner, analyst at Deutsche Bank, referring to last month’s Federal Reserve announcement of open-ended quantitative easing. “We have a pause in monetary policy action – it’s very unlikely we’re going to see anything in the […]

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China’s Demand to Buy Gold in Spotlight, Dollar-Gold Recovers and Euro-Gold Hits 6-Week Low

Prices to Buy Gold recovered an early dip in London on Wednesday morning, rising back to $1750 per ounce as European stock markets also rose and the single currency hit its best level in more than a month. Commodities were broadly flat but so-called “safe haven” government bond prices ticked lower as Spanish debt rose on expectations of a formal bail-out request. The Moodys rating agency last night confirmed Spain’s ranking above “junk” status. Madrid’s 10-year bond yields today eased to their lowest spread above comparable German debt in 6 months. “Gold and the precious complex have been held afloat overnight and this morning by a stronger Euro,” says UBS strategist Edel Tully in […]

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The End of Austerity

| October 11, 2012 | Articles: Insights
The End of Austerity

It’s a common myth that the Labour government in power when the Great Depression went global in 1931 was forced to resign by a banker’s ramp, writes Adrian Ash at BullionVault. The British prime minister, Ramsay Macdonald, denied it at the time. Close academic study has since found evidence lacking, too. But the idea of millionaires in top hats conspiring to weaken both the Pound and British debt (then consuls, now gilts) still lingers. By demanding gold for their paper at the Bank of England, these interwar illuminati effectively handed a direct demand to London, ordering a cut in welfare payments so severe that Labour politicians – elected by the “working man” – had no […]

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Conditions Still Favorable for Gold, But Dollar Strength Has Stalled Gold’s Move

Wholesale prices for Buying Gold eased to just above $1770 per ounce Tuesday morning in London, around ten Dollars below where they started the week, while stocks and commodities were broadly flat despite major economies seeing their growth forecasts downgraded by the International Monetary Fund. Prices to Buy Silver dropped below $34 an ounce – down more than 2% on the week so far. US Treasury bond prices gained this morning, in contrast with those for UK and German government debt, which fell along with the Euro. A day earlier, the volume of gold held to back SPDR Gold Shares (GLD), the world’s biggest Gold ETF, hit a new all-time high at 1340.5 tonnes. “Though […]

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Traders Advised to Buy Gold on Pullback as China Slowdown Plays Bogeyman

Prices to Buy Gold slipped 0.6% to $1768 per ounce in Asian and London trade Monday, holding almost $30 below Friday’s new 11-month high as world stock markets also fell together with commodity prices. Chinese traders wanting to Buy Gold saw the price fall sharply as the Shanghai futures market re-opened after the long Golden Week holidays. Silver Prices fell nearly 5% from last week’s new 7-month high against the US Dollar, hitting the lowest level in nearly two weeks. The US Dollar rose against all other major currencies, knocking the Euro back beneath $1.30. “We are somewhat cautious on gold here,” says a note from commodity brokerage Intl FC Stone.  “It has had a […]

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Prices to Buy Gold Hit New 2012 High

Wholesale prices to Buy Gold rose to $1794 per ounce ahead of Thursday’s US session, above the previous 2012 high hit earlier this week, while stock markets were broadly flat and US Treasury bonds fell ahead of the publication of minutes from the latest Federal Reserve policy meeting. “We are watching for a break to the upside through $1790 resistance, which will then target the all-time nominal high [at around $1920 per ounce],” say technical analysts at Scotiabank. “A break through support at $1750 will lead to a deeper correction.” Prices to Buy Gold in Sterling meantime rose to their highest level since the end of February at £1113 per ounce. Prices to Buy Silver touched […]

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Gold Prices Steady Near Highs, Investors Should Allocate to Gold says Pimco

Gold Prices traded in a tight range just below $1780 per ounce for most of Tuesday morning’s London session, just below a new 2012 spot market high touched yesterday following comments from US Federal Reserve policymakers. Silver Prices hovered just below $35 per ounce, close to seven-month highs, while stocks and the Euro ticked higher despite warnings that Spain is underestimating the amount of recapitalization its banks need. Commodities were broadly flat, with copper showing some strength, while major government bond prices fell. A day earlier, Dollar Gold Prices touched a new 2012 high at $17971 per ounce during Monday’s US session, while the Gold Price in Euros set a fresh all-time record at €44,583 per […]

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Gold Bullion Has Base for Assault on $1800

Gold Bullion dipped below $1770 per ounce Monday morning in London, though it remained in line with the last fortnight’s trading, while European stock markets rallied along with the Euro following news late last week that the capital needs of Spain’s banks are within existing provisions. “On the monthly chart, the bull trend remains intact, with uptrend support at $1594 and resistance at $1790, the previous high,” says technical analyst Russell Browne at Scotia Mocatta. “[Gold seems] to have established a base now down at $1740,” adds Dave Govett, head of precious metals at brokerage Marex-Spectron. “But we also seem to have a ceiling in place between $1785 and $1790…I think […]

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Euro Gold Prices Hit Record as Debt Crisis Escalates

Gold Prices hovered near seven-month highs above $1780 per ounce for most of Friday morning in London – a few Dollars up on where they started the week – while stocks failed to hold early gains after a analysts interpreted Spain’s budget as “laying the groundwork” for a formal bailout. Silver Prices eased to $34.73 per ounce after failing to breach $35, while other commodities were broadly flat and US Treasury bonds gained. Euro Gold Prices meantime remained close to all-time highs hit yesterday. “The debt crisis in the Eurozone has escalated again,” says today’s commodities note from Commerzbank. “Gold should therefore remain in high demand as a store of value and alternative currency. […]

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