Close X Cookies are necessary for the proper functioning of 24hGold.com. By continuing your navigation on our website, you are accepting the use of cookies.
To learn more about cookies ...
EnglishFrench

"Exciting Week" Ahead for Gold as Silver Hits 6-Week High, US Prepares $99Bn Bond Sale

IMG Auteur
 
Published : November 24th, 2012
525 words - Reading time : 1 - 2 minutes
( 2 votes, 3/5 )
Print article
  Article Comments Comment this article Rating All Articles  
0
Send
0
comment
Our Newsletter...
Category : GoldWire

 

 

 

 

London Gold Market Report


The DOLLAR PRICE of physical gold rose back to $1734 per ounce in London on Friday morning, nearing the top of the last 5 weeks' trading range as so-called "risk assets" also crept higher.

Asian and European stock markets were slightly stronger, while the single Euro currency pushed back above $1.29.

Commodity prices added 0.5% on the broad GSCI index. Silver touched its best Dollar-price in 6 weeks above $33.50 per ounce.

"Activity is muted," said one London dealer, with US markets due to re-open but many traders extending the Thanksgiving holiday.

"[The gold price] is stuck between $1715 and $1740 area for now," Reuters quotes Ronald Leung at Lee Cheong Gold Dealers in Hong Kong.

"But speculators are still bullish on gold, as uncertainties about the 'fiscal cliff' hang around and they believe that central banks around the world will stay loose on monetary policy."

On a technical analysis, the gold price "is just a few dollars shy of its 50-day moving average sitting at $1741," says a note from Swiss investment and bullion bank, UBS.

"More importantly, a key technical level [is] lurking at $1739.10...A break above this level, which is the month’s high, would be a crucial bullish development.

Again citing the US holiday, "Market participants may have to wait until after the weekend to see some action," UBS adds. "[European] investors still have the day ahead to position for what may be an exciting week."

Next week the US Treasury will seek to raise $99 billion in new debt, according to Bloomberg data.

Treasury bond prices rose Friday, pushing interest rates down to just 1.67% on 10-year debt.

"Pimco is avoiding, or trying to keep a low weighting, on maturities beyond 10 years," said Tony Crescenzi, a portfolio manager at the giant bond-fund group, in an interview. "Because we know the Fed’s intent is to reflate a deflated economy."

Nearer-term, he believes, "Treasuries provide good insurance against macro risk."

British Gilts and German Bunds also rose Friday morning, reducing 10-year German yields to just 1.42% – despite stronger-than-expected Ifo business confidence data – after the S&P ratings agency cut the status of 3 more Spanish banks.

Spain's sovereign debt prices fell, nudging 10-year interest rates up to 5.68%.

Spain's wealthiest region, Catalonia, goes to the polls on Sunday for elections which local president Artur Mas has called a referendum on independence from Madrid.

Over in Athens meantime, negotiations continued over €31.2 billion in bail-out funds which Greece has been waiting for since June from the International Monetary Fund.

The IMF said this morning that Greek debt would be "viable" if cut to 124% of GDP by 2020. It is currently on track to hit 190% by 2014.

"It's natural [we] look out for other types of assets," today's Financial Times quotes a Brazilian economist after new data showed the central bank adding more than 17 tonnes of gold bullion to its national reserves in October.

That took Brazil's total reserves to 53 tonnes, an 11-year high.

The latest gold reserves data from the IMF also show Turkey, Kazakhstan and Russia again raising their national holdings as well.



 

 

Companies Mentionned : Bullion |
Data and Statistics for these countries : Brazil | Greece | Hong Kong | Kazakhstan | Russia | Spain | Turkey | All
Gold and Silver Prices for these countries : Brazil | Greece | Hong Kong | Kazakhstan | Russia | Spain | Turkey | All
<< Previous article
Rate : Average :3 (2 votes)
>> 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.
Latest comment posted for this article
Be the first to comment
Add your comment
Top articles
Latest Comments
Greece’s referendum
11:58end
"History may judge him instead to have played a poor hand very well indeed." I'm quite sure both Macleod and Varoufakis will be quite disa...
Gold Daily and Silver Weekly Cha...
02 Julglasstiger
Jesse, you use the term "could care less" frequently. Is this American speak for "couldn't care less"? Similar I suppose to the ubiquitou...
One more book, Mr. Stockman
02 Juluser4779-1
While it is true that "[Gold standards] were abused, suspended, and ultimately abandoned in favor of a currency that central banks could inflate at...
Panicked Hedge Funds Now Praying...
30 Junovertheedge1
"... and the silly game theory ..." Obviously you have no knowledge of game theory and its applications. Otherwise you wouldn't have used ...
The Gold Standard: Generator & P...
30 Junuser4779
Is it really so bad for Americans that they do not spend their lives labouring on a production line to make mass-produced goods, and have left this...
The Gold Standard: Generator & P...
30 Junsam_site
You state, “To continue selling to the West, China will have to open wide its doors to imports” Here’s the crux of your argument of why Chin...
The euro crisis
30 Junovertheedge1
"There is no immediate benefit from debating why." Debate? That would be like debating whether or not gravity exists. You stated the obvio...
The Ultimate Confirmation
29 Junovertheedge
It would appear that we share the same conclusion. A few sealed cans of kerosene might be handy as well. Thumbs up sir.
Most commented articlesFavoritesMore...
World PM Newsflow
ALL
GOLD
SILVER
PGM & DIAMONDS
OIL & GAS
OTHER METALS
Mining Company News
Junex(Ngas)JNX.V
Junex Closes a Portion of its Private Placement for Proceeds of $5 Million
CA$ 0.80+0.00%Trend Power :
Corporate news
Potash Corp.POT.TO
K+S says no basis for talks suggested by Potash Corp
CA$ 38.88+0.52%Trend Power :
Corporate news
EMED(Au-Cu)EMED.L
Director Share Purchase
GBX 4.57-3.79%Trend Power :
Corporate news
Golden West Res.(Fe)GWR.AX
Change in Substantial Shareholding - WPI
AU$ 0.05+0.00%Trend Power :
Corporate news
Potash Corp.POT.TO
Potash says confident can address K+S' concerns about takeover offer
CA$ 38.88+0.52%Trend Power :
Corporate news
Potash Corp.POT.TO
PotashCorp Confident K+S Concerns Can Be Addressed Through Collaborative Discussion
CA$ 38.88+0.52%Trend Power :
Corporate news
Tawana Resources(Gems)TAW.AX
Changes to Tawana’s Board of Directors | 71.72 KB
AU$ 0.00+0.00%Trend Power :
Corporate news
Teras Resources(Au)TRA.V
Teras Receives Results From Core Drill Program
CA$ 0.08+6.67%Trend Power :
Corporate news
Goldrush Res.(Au)GOD.V
Goldrush Announces Receipt of US$500,000 Payment and Appointment of New Chief Financial Officer
CA$ 0.02+0.00%Trend Power :
Corporate news
McEwen Mining(Cu-Le-Zn)MUX
McEwen Mining Addresses New York Stock Exchange Listing Requirements
US$ 0.96+6.67%Trend Power :
Corporate news
Comments closed