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

Euro-Gold Just 1% Off Record High as Jim Cramer & Deutsche Bank Agree "Gold Is Money"

IMG Auteur
 
Published : September 21st, 2012
655 words - Reading time : 1 - 2 minutes
( 3 votes, 4/5 ) , 1 commentary
Print article
  Article Comments Comment this article Rating All Articles  
0
Send
1
comment
Our Newsletter...
Category : GoldWire

 

 

 

 

WHOLESALE PRICES to buy gold using US Dollars or British Pounds fell Thursday morning to trade just 1% below their 7-month highs of the last week.


Commodity prices dropped once again with Asian and European equities, while major-economy government bonds rose after new data showed Chinese factory output falling and Europe's private-economy contracting at the fastest pace in 3 years.


The Euro also slipped Thursday morning, extending this week's drop from 4-month highs.

That buoyed prices to buy gold in Euros back to €1360 per ounce (€43,725 per kilo) – barely 1% below Sept. 2011's all-time high.

"While the uptrend [in Dollar gold] is still intact, price action is lackluster and we have been moving sideways for the past 4 sessions," notes Russell Browne, strategist at Scotia Mocatta in his latest technical analysis.

Overnight in Asian trade, "There was another significant flushout" in crude oil prices, says Alex Thorndike, senior precious metals trader at MKS Capital in Sydney – now down to a 6-week low.

"Precious [metal trade] was heavy on the back of this move," says Thorndike, reporting "a significant wash out for the yellow metal in a fairly brutal sweep."

"Short-term," adds a technical analysis from London market-makers Societe Generale – and pointing to a continued "down trend" off Sept. 2011's all-time high – prices to buy gold in Dollars this morning "broke the steep channel support line which was in place since early September.

"A further correction will develop to 1756/53 then 1745 and 1736."

As the Dollar gold price steadied around $1760 per ounce late-morning in London, the price of silver bullion also bounced from a 2-session low vs. the US Dollar.

Priced in the Euro, silver today traded at €26.50 per ounce (€852 per kilo) – up 25% since mid-June.

"While [gold] is included in the commodities basket, it is in fact a medium of exchange and one that is officially recognised – if not publically used as such," write Deutsche Bank analysts Daniel Brebner and Xiao Fu in a new report this week.

"We see gold as an officially recognised form of money for one primary reason: it is widely held by most of the world's larger central banks as a component of reserves."

Going further, "Gold is the only currency," said CNBC TV host, self-declared entertainer and educator Jim Cramer to
TheStreet.com – the financial site he co-founded in 1996 – on Wednesday.

"People say to me, 'What is the one currency you can trust?' I come back and say, 'Gold, because there is such a tremendous scarcity.'

"People regard it as a precious metal. I think that's the wrong call."

Back in the wholesale gold bullion market meantime,"The flow of business remains dull in the physical space," says one London dealer in a note, "with Indian demand completely off despite being the high season of purchases in front of Diwali."

Luxury goods including watches, pens and iPads "are set to replace gold and silver coins" and religious items as corporate gifts during this year's Hindu 'festival of lights' – falling in mid-November 2012 – reports the Economic Times today from Ahmedabad and Kolkata.

"The popularity of gold recycling," adds the Wall Street Journal – which cites industry officials and analysts – "is [also] likely to weigh on gold demand in India, the world's biggest consumer of physical gold."

So far in 2012 some 40% of Indian gold sales have in fact been exchanges of old items, reckons Prithviraj Kothari, president of national trade body the Bombay Bullion Association. That's up from 20% previously.

Opposition parties in India called for a national strike – closing many jewelers as well as other shops, schools and government buildings – in protest at the latest rise in official diesel fuel prices.

Central government workers and pensioners may get a rise to match that inflation in their Dearness Allowance, a cost-of-living bonus given to some 8 million people, according to local press.



 

 

Companies Mentionned : Bullion | Generale | Metals X |
Data and Statistics for these countries : India | All
Gold and Silver Prices for these countries : India | All
<< Previous article
Rate : Average note :4 (3 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
Jimmy come lately... if he wasn't anything more than a WS pump-n-dumper, he would have been talking about it at $300/oz, not $1700/oz... what a maroon...  Read more
Michael W. - 9/21/2012 at 5:19 PM GMT
Rating :  1  1
Top articles
Latest Comments
Gold Surges Another 7% This Week...
12 Febovertheedge
"Buyers should be getting into position to buy on the next dip." Gold is up something like 16% so far this year. Should'a bought when it wa...
Here We Go Again: Banks Are Impl...
12 Febsonora69
What is going to happen NEXT Monday? The Shanghai markets are closed all this week for the Lunar New Year. Monday morning ( or Sunday night U.S. t...
First Report since April, 2014
05 FebAndy_K1
Jason, One of your articles written way back is one of the reasons I started paying attention to silver and shortly thereafter started to ...
Something has Changed in Gold St...
06 Febneville
No nothing strange has happened in GOLD stocks....absolutely nothing.....The fact of the matter is that you byrne have been playing the man and...
The Revisionist Theory and Histo...
05 Febovertheedge
"The key is in the hand of the U.S. government. It is the same key that was used to lockthe U.S. Mint to silver in 1873, and to gold sixty years la...
First Report since April, 2014
05 FebS W.1
Here I was just 2 days ago thinking whatever happened to that evangelical silver guy. Low and behold up he springs, like some spirit from the g...
LBMA Silver “Price”: A Perfect S...
03 FebS W.
There is no doubt that the Comex can be used as a casino for those who want to trade Silver up/or down or maybe some just wish to take a small punt...
LBMA Silver “Price”: A Perfect S...
30 JanOzSILV1
Bron refuses to EVER admit this market is a Casino and the disconnect between Paper and Physical is a big clue to this
Most commented articlesFavoritesMore...
World PM Newsflow
ALL
GOLD
SILVER
PGM & DIAMONDS
OIL & GAS
OTHER METALS
Mining Company News
Lara Expl.(Cu-Zn-Au)LRA.V
Revised Resource Estimate Report Filed for Maravaia Copper Gold Deposit
CA$ 0.34+1.49%Trend Power :
Corporate news
Black HillsBKH
Black Hills reports 4Q loss
US$ 51.64-2.75%Trend Power :
Corporate news
Kinder Morgan(Oil)KMP
Midstream Companies Were above the 20-Day Moving Averages
US$ 102.03+1.98%Trend Power :
Corporate news
Kinder Morgan(Oil)KMP
Midstream Companies Were above the 20-Day Moving Averages
US$ 102.03+1.98%Trend Power :
Corporate news
Devon Energy(Ngas-Oil)DVN
Gasoline Inventories Rose Last Week despite Fall in Production
US$ 21.69+2.07%Trend Power :
Corporate news
United States Steel(Fe-Sn)X
U.S. Steel (X) States Ratification of Labor Agreements
US$ 7.40+8.35%Trend Power :
Corporate news
Black HillsBKH
4:34 pm Black Hills Corp beats by $0.04, misses on revs; guides FY16 EPS below consensus
US$ 51.64-2.75%Trend Power :
Corporate news
Black HillsBKH
Black Hills Corp. Reports 2015 Fourth Quarter and Full Year Results
US$ 51.64-2.75%Trend Power :
Corporate news
Transcanada PipelinesTRP.TO
TransCanada to Sign Substantial Agreement to Benefit Québec Economy
CA$ 48.65+0.16%Trend Power :
Corporate news
Devon Energy(Ngas-Oil)DVN
4Q15 Crude Oil Prices: Fallout for the Energy Sector and SPY
US$ 21.69+2.07%Trend Power :
Corporate news
Comments closed
  All Favorites Best Rated  
Jimmy come lately... if he wasn't anything more than a WS pump-n-dumper, he would have been talking about it at $300/oz, not $1700/oz... what a maroon...
Rate :   1  1Rating :   0
EmailPermalink