Close X Cookies are necessary for the proper functioning of By continuing your navigation on our website, you are accepting the use of cookies.
To learn more about cookies ...
Gold & Silver Prices in

"Lack of Catalyst" Leaves Gold "Susceptible to Downward Move", But Silver "Should Move H

IMG Auteur
Published : February 13th, 2013
794 words - Reading time : 1 - 3 minutes
( 0 vote, 0/5 )
Print article
  Article Comments Comment this article Rating All Articles  
Our Newsletter...
Category : GoldWire

London Gold Market Report

THE DOLLAR gold price drifted back below $1650 an ounce Wednesday morning, 1.1% down on the week so far, although it jumped higher in Sterling following after a Bank of England report said policymakers are prepared to "look through" persistently high UK inflation.

"The $1625.77 level remains key for [gold's] medium term trend," says Axel Rudolph, senior technical analyst at Commerzbank.

"Failure here should provoke a sell-off to below $1600 level before the precious metal levels out and starts rising again."

"Technically the metal appears susceptible to a move lower," agrees a Deutsche Bank report, perhaps to the 1,600 an ounce level or even $1,550 an ounce... There is a distinct lack of obvious positive catalysts for gold at the moment, with the current environment seemingly bereft of macro[economic] concerns."

Silver also drifted lower this morning, but held above $31 an ounce, while other commodities ticked higher.

"We believe silver is likely to move higher in 2013 based on four factors," says a note from HSBC.

"Higher industrial demand, steady investor appetite for hard assets, strong coin and bar purchases, and a bottoming out of jewelry demand."

European stock markets recovered this morning after easing in the first few hours of trading. The FTSE in London was the weakest performer of the major European markets this morning, dropping 0.2% before recovering some ground, after pharmaceutical firm Astra Zeneca, oil producers BP and Shell and payroll software provider Sage all went ex-dividend, meaning anyone who buys their shares today will not receive the next dividend payment.

Shares in London-listed miner African Barrick Gold meantime fell more than 9% to a six-month low this morning after the firm announced its lowest yearly production forecast since it listed in London in 2010. Earnings fell by 39% in 2012, the company said, as production fell and costs rose.

Until last month, Barrick Gold was in talks with China National Gold to sell its 74% stake in African Barrick, but the talks ended with no deal done.

Platinum meantime rose to $1723 per ounce this morning, its biggest premium over gold in 17 months, after the world's third-largest producer Zimbabwe repossessed land held by the country's biggest producer Zimplats.

In Washington last night, US president Barack Obama used his State of the Union address to highlight job creation, immigration and gun control as priorities for his second term.

"Most of us agree that a plan to reduce the deficit must be part of our agenda," Obama said.

"But let's be clear: deficit reduction alone is not an economic plan."

"[Obama is promoting] a go-it-alone approach to pursue his liberal agenda," Republican House of Representatives speaker John Boehner said following the address.

The Pound fell sharply against the Dollar and Euro this morning, following the publication of the Bank of England's Quarterly Inflation Report, which says the Bank will "look through" above-target inflation "as long as domestic cost and price pressures remained consistent with inflation returning to the target in the medium term."

"Attempting to bring inflation back to the target sooner by removing the current policy stimulus more quickly than currently anticipated by financial markets would risk derailing the recovery and undershooting the inflation target in the medium term," the report says.

The Bank's view on how likely inflation is to return to its 2% target is based on its own forecasts. Figures published yesterday show UK consumer price inflation remained at 2.7% last month, having been above target in every month since December 2009.

Gold in Sterling rose 0.9% to £1059 per ounce immediately following the publication of this morning's report, just below its high for the week so far.

Criticism of Japan's recent policy actions, which have been followed by sustained weakening of the Yen, was "not the key message" of yesterday's G7 statementreaffirming a commitment to market determined exchange rates, according to Standard Bank currency strategist Steve Barrow.

"The key message is that international policymakers want China to have a market determined exchange rate, and it is particularly the message from the US which is, after all, the dominant player in any G7 or G20 forum," says Barrow.

"G20 meetings start this weekend and we likely will see more forceful policy statements about individual currency devaluations going forward," adds Ed Meir, analyst at brokerage INTL FCStone.

"However, the Japanese will likely water down any harsh language in the final communiqué by bringing up the disruptive actions the US has been taking with respect to its massive easing program and its inability to reach badly needed fiscal accords."

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.

Companies Mentionned : Barrick Gold | Catalyst | Zimplats |
Data and Statistics for these countries : China | Japan | Zimbabwe | All
Gold and Silver Prices for these countries : China | Japan | Zimbabwe | All
<< Previous article
Rate :Average :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.
Latest comment posted for this article
Be the first to comment
Add your comment
Top articles
Latest Comments
Gold: April 2015 Update
30 Marovertheedge
"I have been invited to speak at the Mines & Money Mauritius Conference in June 2015 again. If you would like to join you can receive 25% off your ...
Greece Needs the Magic Formula t...
30 Marovertheedge
Wow dude. "Idiocracy" is obviously not just another dumb-ass movie. I admit that I should have recognized your devotion to Brawndo (it has ...
The Finanser Interviews Jon Matonis
29 Marovertheedge
"In late 2009, I got introduced to Bitcoin by a random email from Satoshi Nakamoto. I didn’t give it much thought at the time and then 3-4 months ...
Gold Effect on Mining & Shale Wa...
27 Maruser4779-1
A jumbled and rambling article, seasoned with hyperbolic rant, but redeemed by interesting information. So 3/5. A good editor could turn this into ...
Oil Surges, Gold and Silver Spik...
26 Marovertheedge
"That a country would choose to directly intervene militarily in the affairs of another country is a dangerous precedent, ..." Precedent?<...
Water Wars Loom Over California ...
26 Marovertheedge
Ellen Brown should stick to what she understands versus geology, hydrology and financially available technology. Example: "With discussions...
Kicked to the Curb
24 MarFalconflight2
I'm both ashamed and disgusted by the government 'of, by, and for the people,' every bit as much as I am ashamed and disgusted by the People.
The Silver:Gold Ratio, 1687-2011
24 Marconey1
"large new deposits of silver were found"? So what was found by ECB that enabled them to cough up an extra trillion euros for failing European econ...
Most commented articlesFavoritesMore...
World PM Newsflow
Mining Company News
Trevali Mining(Cu-Le-Zn)TV.TO
Commences Mining at Caribou Zinc Mine in Anticipation of Q2 Mill Commissioning
CA$ 1.09+6.86%Trend Power :
Corporate news
Solvista Gold Corporation and Rockcliff Resources Inc. Enter Into Letter of Intent Regarding
CA$ 0.04+16.67%Trend Power :
Corporate news
Pele Mountain Res.(Ag-Au-Cu)GEM.V
Executes MOU with Major Chinese Rare Earth Player to Pursue Opportunities of Developing Rare
CA$ 0.05+66.67%Trend Power :
Corporate news
Duran Ventures(Ag-Au-Cu)DRV.V
Signs Memorandum of Understanding for Tolling Operation in Peru
CA$ 0.02+50.00%Trend Power :
Corporate news
Waseco Res.(Ur-Au-Gems)WRI.V
Announces Non-Brokered Private Placement
CA$ 0.04+0.00%Trend Power :
Intersects 8.64 g/T Over 5.8 Meters at Bachelor Mine
CA$ 0.04-11.11%Trend Power :
Corporate news
Hudson Res.(Ag-Au-Cu)HUD.V
Reports Robust Preliminary Economic Assessment (PEA) for Specialty Alumina Production From th
CA$ 0.50+0.00%Trend Power :
Corporate news
Western Copper(Cu-Le-Zn)WRN.TO
and Gold Provides Casino Update and Reports Year-End Results
CA$ 0.58-3.33%Trend Power :
Corporate news
Western Copper(Cu-Le-Zn)WRN.TO
and Gold Provides Casino Update and Reports Year-End Results
CA$ 0.46-2.09%Trend Power :
Corporate news
Corona Gold(Ag-Au)CRG.TO
Provides Update on Voluntary TSX Delisting and Application for Listing on Canadian Securities
CA$ 0.31+3.33%Trend Power :
Corporate news
Comments closed
Subscribe to 24hGold’s daily market briefing
  • Prices and data of precious metals in 119 currencies and world mining companies
  • Daily analysis of the economy, markets and more
  • Free, daily and indispensable
Stay informed, subscribe now !
* Your email will never be shared.