RSSCategory: Articles: Gold Silver Prices

Gold Price Drop Triggers Stop-Losses

The Gold Price fell further against the US Dollar in Asia and London on Wednesday, trading at 1-week lows beneath $1550 per ounce as world stock markets dropped and the Euro hit a new two-year low as fresh debt worries hit the 17-nation currency union. Spain was accused by the European Commission in Brussels of not doing enough to meet its deficit-reduction targets under the new EU treaty – agreed by politicians in December and due for Ireland’s ratification after next Sunday’s vote. Spanish bond yields rose again as bond prices fell, with the price of credit default swaps on Spanish government debt – a form of insurance that failed to pay […]

Continue Reading

Gold Continues to Attract Buying at the Bottom of its Trading Range

Gold Continues to Attract Buying at the Bottom of its Trading Range

Gold has once again attracted strong buying down near the bottom of its broad 8 month trading range and has now bounced higher for the day. Strength in the yellow metal has pulled silver up a tad which was sinking under the weight of a collapsing copper market. While some are ready to pronounce gold DEAD as a safe haven asset, the chart picture denotes otherwise, especially given the broad weakness in the commodity sector as a whole and the rallying Dollar, which continues its technical march towards the 84 level on the USDX. Whenever I see gold moving higher alongside Treasuries and the Dollar, it tells me that all […]

Continue Reading

The USD Index above 82.5 Is Deadly for Gold

The USD Index above 82.5 Is Deadly for Gold

The reasons for the gold’s decline given in the press were a case of “round up the usual suspects.” There were concerns that China’s economyis slowing and that European leaders may fail to stem the debt crisis. As expected, the new French President Francois Hollande challenged Germany’s deficit-cutting stance. The euro hit a near two-year low against the dollar on Thursday after dismal German economic data suggested that no country in Europe is immune from crisis. The German data for May suggested the growth in Europe’s economic engine that has so far helped the currency bloc dodge recession, may be starting to slow. Last week euro dropped sharply to $1.2515, […]

Continue Reading

Gold Investment Needs New Driver, Currently Under-Valued

The price of wholesale Gold Investment bars gave back a $5 rally in London for the second day running on Tuesday, ticking lower to last week’s finish at $1573 per ounce as the Euro currency also reversed its early gains. European stock markets cut their rise but held 0.7% better by lunchtime, while commodity prices were broadly higher but the Silver Price fell to new 3-session lows beneath $28.30 per ounce. US, UK, German and French government bonds rose yet again, pushing the annual yield on 10-year Bunds down to 1.35%. Germany’s consumer price inflation was today pegged at 1.9% year-on-year by the official statistics agency, down from 2.1% in April. Spanish retail sales fell […]

Continue Reading

Gold Price Higher But Seen Rangebound

The Gold Price rose 0.8% in Asian and early London trade Monday, touching $1584 per ounce and holding above 4-session highs as the Euro rallied together with global stock markets. With New York closed for Memorial Day, commodity prices also extended their bounce, and the Silver Price added 30¢ before edging back to last week’s finish at $28.54 per ounce. Spanish 10-year bond yields today rose back above 6.4% –  a level last seen before the European Central Bank’s €1 trillion LTRO loans began in December 2011 – as press reports said Madrid may move to support both the failed Bankia lender and Spain’s cash-strapped regional governments with new public debt. Italy’s unelected caretaker […]

Continue Reading

Central Banks and China provide solid support for the gold price

Past week marked another V-type move in the gold price and silver price. The good news though is that the previous low has not been broken, but we rather saw a higher low. Especially in gold, a remarkable  bounce occured intraday on Wednesday, after the trading session started with a sharp price drop. It seems that the gold price is not allowed to move lower, at least for now. We’ll need to watch the price action over the coming weeks. Tensions over Europe are increasing and the faith of the European currency and banking system is in the hands of the politicians. The speed and type of their decisions will […]

Continue Reading

Gold Price hits same bottom 4th time: the week till 25/05 in review

The weekly review by BullionVault.com, shows that gold and silver followed a similar pattern as one week ago: a drop in the first days of the week followed by a bounce towards the end of the week. In particular, the gold price dropped on Wednesday to 1534 US dollar per ounce, but then rallied back very fast to close the week at 1569 on Friday at the London PM fix. That’s a weekly close with a loss of some 20 dollar. Silver followed a comparable price action, but it recovered better than gold on a weekly basis. Silver closed the week on 28.24, down 0.9% week-on-week. Of course, the main theme during the past week […]

Continue Reading

Euro to Surge

Euro to Surge

The fortunes of Europe’s beleaguered euro currency have been heavily influencing US markets. Both stocks and commodities have been battered down recently by overwhelming euro bearishness. This has proven seriously vexing for traders trying to focus on fundamentals. But the extreme euro pessimism worrying everyone is actually very bullish. This loathed, oversold currency is due to surge again. Today of course the great fear plaguing the euro is centered around Greece. This profligate, unrepentant debtor nation seems hellbent on not honoring its commitments to the rest of Europe which could force its exit from the eurozone. And though Greece’s economy is immaterial relative to greater Europe’s, traders are worried Greece […]

Continue Reading

Asian Premiums on Gold Bars Steady, Rising as US Futures Exchange Cuts Margin Costs

Prices to buy wholesale Gold Bars rose into the start of London trade Friday, cutting the week’s losses to 1.9% as European stock markets gave back an early rally and commodities headed for their fourth weekly loss in succession. Asian stock markets crept 0.1% higher from Thursday’s near 5-month low. Silver Bullion rose above $28.30 per ounce, recovering two-thirds of this week’s 5.5% drop to Wednesday’s low. “[Mid-week] was bloodshed as panic and fear continue to dominate the market,” said one wholesale Gold Dealer in Singapore in a note. But “while Indian [physical] demand has been lower than normal, overall we continue to see decent buying interest from the rest of Asia,” says today’s […]

Continue Reading

Gold on the verge of a new phase of development?

Gold on the verge of a new phase of development?

Let me start by saying I completely understand that there are valid reasons to buy gold for the long term as insurance and for savings.  I also don’t make trading decisions based on fundamental analysis. Futures trade in a two way auction.  Price is determined only by whatever amount someone is willing to bid or offer at a given moment.  This is the truth.  If the fundamentals are bullish, and the auction is bullish, a good trader is only going to be on one side of the trade, the right side.  But if the auction is bearish what good are fundamentals?  An Auction Market Analyst knows that the fundamentals will come out eventually, but by the time […]

Continue Reading

Gold Price Tied to Risk Assets as Fund Managers Run into Cash

The wholesale Gold Price bounced from a 4-session low at $1552 per ounce Wednesday morning in London, rallying with the Euro currency as world stock markets slumped. The Athens stock market hit a fresh 22-year low, and Wall Street futures pointed 0.7% down, while US Treasuries rose sharply together with Japanese, German and UK bonds. The Brazilian Real continued to weaken, hitting new 3-year lows on the forex market despite the Banco Central do Brasil selling some $2.8 billion in US Dollars via currency swaps over the last 3 trading days in a bid to stem the slide. As recently as March, Brazil’s government accused the United States of under-pricing the Dollar, […]

Continue Reading

So What’s Up with the Gold Price?

What’s up with the Gold Price? asks Adrian Ash at BullionVault. Very little besides Facebook. Gold is down, in fact. So is everything else bar the US Dollar and “safe” sovereign debt. “I think what we can expect is a rate cut from the ECB [European Central Bank],” said Joachim Fels, chief economist at Morgan Stanley, to Bloomberg TV Wednesday morning. “I think they will cut soon, as early as the June meeting… “But unfortunately, a rate-cut alone doesn’t do the trick.” The trick, of course, is holding the Eurozone together by destroying the Euro. Or at least decimating its value. You might expect that to boost the Gold Price, and everything else. But very little […]

Continue Reading

Gold signals trouble ahead

Gold signals trouble ahead

Precious metals are still struggling to gain ground in the face of persistent fears about the eurozone and the threat of a 2008-style market meltdown. The CFTC’s latest Commitments of Traders Reports for the gold and silver futures market in America shows managed money (read: hedge funds, commodity trading advisors, etc) holding their largest short positions in these markets since September 2008. Is The Great Crash coming? The GotGoldReport comments, however, that if recent history is any guide these large short positions are more often that not an indicator that we are getting close to a bottom, as the chart below suggests: Gold remains trapped in a range between $1,550 and $1,600, after failing […]

Continue Reading

Physical Market Continues to Buy Gold as Consumers Adjust to $1600

Prices to Buy Gold fell further from yesterday’s attempt to break $1600 per ounce in London on Tuesday morning, bouncing higher from $1575 as European stock markets rose for the second day running after falling all month. The price to Buy Gold with British Pounds reversed an early dip below £1000 per ounce – a level first reached as the Eurozone and US debt crises intensified in July 2011. Credit ratings agency Fitch today cut Japan’s status to “A+” with a negative outlook. Commodity prices were mixed, with US crude oil almost 7% down from the start of the year as the Paris-based OECD consultancy cut its forecasts for Asian GDP and global energy […]

Continue Reading