In the same category

Gold Price Stuck Below 200-Day MA as Merkel Snubs May, China 'Tries to Curb Bubbles'

IMG Auteur
 
Published : March 30th, 2017
580 words - Reading time : 1 - 2 minutes
( 0 vote, 0/5 )
Print article
  Article Comments Comment this article Rating All Articles  
0
Send
0
comment
Our Newsletter...
Category : GoldWire
GOLD PRICES again dipped and rallied back above $1250 per ounce in Asian and early London trade Thursday, unchanged from the end of last week with analysts continuing to point to the metal's 200-day moving average at $1260 as strong resistance to the first quarter's 8.6% gain.
Asian stock markets closed lower but European shares held flat overall.
The British Pound meantime held sharply below this week's near 8-week highs on the FX market after German Chancellor Angela Merkel rejected the central proposal in UK Prime Minister Theresa May's formal Brexit letter – handed to the European Council yesterday – for negotiations on both the UK leaving and its then-relationship with the European Union to start now and run together.
While the giant GLD gold ETF ended Wednesday unchanged in size, the SLV silver trust shrank 0.8% as shareholders liquidated stock, forcing an 85-tonne outflow – equal to more than  1 days' global silver mine output – and taking the fund's bullion holdings back to mid-March's 12-month lows at 10,291 tonnes.
Trading at $18.16 per ounce, silver prices held a 2.1% gain for the week so far Thursday morning in London.
"Resistance remains firm at $1259.40 – the 200 day Moving Average," says the daily technical analysis of gold prices from bullion clearing and market-making bank Scotia Mocatta's New York office.
"Spot gold has retested the 200-day ma," agrees German bank Commerzbank's weekly technical book.
Now acting as resistance, "This guards $1295.50, the 5-year downtrend," it says.
24hGold - Gold Price Stuck Bel...
Chinese gold prices neared the end of March unchanged for the month in Yuan terms on Thursday,  also fixing in Shanghai at a $12 per ounce premium to comparable London quotes – a strong incentive to new imports into the world's No.1 gold consumer nation.
Also the No.1 mining nation since 2007, China may have identified what Shandong Gold (SHA:600547) – the country's 3rd largest gold producer – calls a "world-class deposit" in the far eastern Jiaodong Peninsula, with 358 tonnes of reserves.
Should the deposit's likely resources also get tapped, the site could produce gold for 40 years at full capacity Shandong says.
The heaviest official buyer of gold so far this century, the People's Bank of China will meantime raise its key interest rate twice in 2017 according to a survey of fixed-income analysts by Bloomberg.
The city of Beijing has introduced nine policies in just 10 days "aimed at curbing skyrocketing home prices," reports the People's Daily online, including a ban on turning commercial property into residential units and a rule that potential home-buyers must have paid tax locally for 60 consecutive months.
"China is far from the end of efforts to squeeze out bubbles," reckons ANZ Bank economist David Qu in Shanghai, "[but] the PBOC will to some extent follow the Federal Reserve in tightening to keep the rate gap largely steady."
After renowned Fed 'dove' Charles Evans this week said two further rate rises look warranted, a view backed separately by vice-chair Stanley Fischer, non-voting Boston Fed president Eric Rosengren called Wednesday for a total of four hikes in 2017 – the initial Fed forecast from December's meeting, since downgraded in their March forecasts.
But "while the economy overall is recovering and the job market has improved substantially," said Fed chair Janet Yellen in a speech yesterday, " pockets of persistently high unemployment, as well as other challenges, remain."
You can receive your first gram of Gold free by opening an account with Bullion Vault : Click here.
Data and Statistics for these countries : China | Georgia | All
Gold and Silver Prices for these countries : China | Georgia | All
<< Previous article
Rate : Average note :0 (0 vote)
>> Next article
The London Gold Market Report is the daily market review from BullionVault, the world's largest physical gold and silver market for private investors. A full member of professional trade body the London Bullion Market Association, BullionVault publishes the LGMR every day that the market is open, bringing you insider comment and analysis from the very center of the world's $240 billion-a-day physical gold trade, and putting the latest gold price action into its wider financial and economic context. 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.
Comments closed
Latest comment posted for this article
Be the first to comment
Add your comment
Top articles
World PM Newsflow
ALL
GOLD
SILVER
PGM & DIAMONDS
OIL & GAS
OTHER METALS
Take advantage of rising gold stocks
  • Subscribe to our weekly mining market briefing.
  • Receive our research reports on junior mining companies
    with the strongest potential
  • Free service, your email is safe
  • Limited offer, register now !
Go to website.