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
Gold & Silver Prices in

Gold consolidation, but no capitulation

IMG Auteur
 
Published : February 14th, 2013
323 words - Reading time : 0 - 1 minutes
( 1 vote, 5/5 )
Print article
  Article Comments Comment this article Rating All Articles  
0
Send
0
comment
Our Newsletter...

24hGold - Gold consolidation, ...Gold and silver may be struggling for direction at the moment, but palladium continues to move higher: bursting above the $760/oz mark yesterday. Platinum enjoyed a solid up day – though its bullish progress has slowed slightly over the last week.

Copper and crude oil as well as general equities had strong sessions, encouraged by the (initially) soothing noises coming from G7 countries about currency tensions. This backfired however, with confusion about attitudes towards the Japanese yen: comments from an American official initially seemed to suggest US acquiescence to Japan’s push for a weaker yen; but a remark from an unidentified G7 official spoilt the mood (and risk rally) later, with the source noting “concern about excess moves in the yen.”

Given these simmering tensions and the still very obvious problems affecting western economies (and Japan), the disconnect between the strong performance seen in equities at the moment – supported by a wall of newly-printed central bank money – and economic fundamentals seems perplexing. Over at the always-informative Cobden Centre blog, Tim Price gives the equity sceptics’ case, including this chart, courtesy of BestMinds Inc.

24hGold - Gold consolidation, ...

He also included the following chart from Erste Bank, which shows gains in the size of ECB and Fed balance sheets versus the gold price:

24hGold - Gold consolidation, ...

Of course, you may well ask: “If money printing is boosting stocks and industrial commodities, why isn’t it pushing gold and silver higher?” To which we’d say, it has pushed these metals higher – as can be seen by the chart above – but that doesn’t preclude periods of consolidation and sideways price movements. It took gold the best part of two years to work through a consolidation period after first hitting $1,000/oz in early 2008. Then as now, there was a chorus of mainstream negativity about the metal, with many proclaiming it a “bubble”, and that the price would soon fall below $1,000 again. They were wrong then, and they’re wrong now.

Thanks to Goldmoney from www.goldmoney.com
Companies Mentionned : Metals X |
Data and Statistics for these countries : Japan | All
Gold and Silver Prices for these countries : Japan | All
<< Previous article
Rate :Average :5 (1 vote)
>> Next article
Latest comment posted for this article
Be the first to comment
Add your comment
Top articles
Latest Comments
41 Facts about Central Banks no ...
20 Decprljr
Common sense and logic dictate that if this was taught in schools it would not exist as it has these past 100 yrs. The monetary system is a CON a L...
41 Facts about Central Banks no ...
19 Decsamking73
I'm not sure that much was taught about the central banking system back when I was in school...25 + years ago. At least not the important parts.
Gold & Silver Market Morning
19 Decend
If you trade XAU/RUB and have bought XAU using RUB, you should have closed your position as he advised. Then you should have switched, buying gold ...
Muslim terrorism, the left and t...
19 DecFirebear1
All please understand this person was a Muslim,that was his believe! His character was that of a criminal as was shown by his action on the day and...
Napoleon vs. Cheney: "Interrogat...
18 Decwalmarde
Torture just put the moral line lower. Lets think about American exceptionalism. What we want ? we want to spread and defend that exceptio...
Napoleon vs. Cheney: "Interrogat...
18 Decwalmarde
Utilitarianism is bad philosphy. I'm also very disgust about torture. It will backfire in our face. We are now no better than ou...
Napoleon vs. Cheney: "Interrogat...
18 DecJosu O.5
I cannot overstate how important is that every american read this article. It's absolutely wonderful how you have summarized every aspect around to...
Muslim terrorism, the left and t...
18 Decend0
Does anyone still wonder why is Australia hotbed for second generation Muslim migrant radicalization? Does anyone still need an explanation on why ...
Most commented articlesFavoritesMore...
World PM Newsflow
ALL
GOLD
SILVER
PGM & DIAMONDS
OIL & GAS
OTHER METALS
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.