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 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
World PM Newsflow
ALL
GOLD
SILVER
PGM & DIAMONDS
OIL & GAS
OTHER METALS
Mining Company News
Claude Resources(Au-Cu-Ngas)CRJ.TO
Increases Land Position at the Seabee Gold Operation and Consolidates Two Joint Venture Agree
CA$ 0.69+1.47%Trend Power :
Exploration and drilling
Eldorado Gold(Au-Fe)ELD.TO
Receives Project Permit Approval for the Eastern Dragon Project
CA$ 5.01+1.42%Trend Power :
Exploration and drilling
Gran Colombia.(Au)GCM.TO
Voting Results of the Annual Meeting of the Shareholders of Gran Colombia
CA$ 0.32+0.00%Trend Power :
Corporate news
Guyana(Ag-Cu-Ni)GPM.V
GPM METALS INC. announces Results of 2015 Annual Meeting
CA$ 0.12+8.70%Trend Power :
Corporate news
Talon Metals(Au)TLO.TO
announces results of AGM
CA$ 0.15+0.00%Trend Power :
Corporate news
Rockwell(Cu-Gems-Ni)RDI.TO
turns to the future after closing the Bondeo 140 cc acquisition
CA$ 0.23+0.00%Trend Power :
Corporate news
Centerra Gold(Au)CG.TO
and Premier Gold Announce Drill Results
CA$ 7.24-1.36%Trend Power :
Corporate news
Wesdome(Cu-Au)WDO.TO
Confirms Continuity of the S50 East and Presqu'Ile Zones at Val d'Or Properties
CA$ 1.05-1.87%Trend Power :
Corporate news
Fortune Minerals(Ag-Au-Co)FT.TO
Announces Results of Annual Meeting of Shareholders and Provides Update of Revenue Silver Min
CA$ 0.04+0.00%Trend Power :
Corporate news
Goldcorp(Cu-Le-Zn)G.TO
Releases 2014 Sustainability Report
CA$ 20.28-0.20%Trend Power :
Corporate news
Comments closed