In the same category

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...
Category : Market Analysis

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.

Data and Statistics for these countries : Japan | All
Gold and Silver Prices for these countries : Japan | All
<< Previous article
Rate : Average note :5 (1 vote)
>> Next article
Comments closed
Latest comment posted for this article
Be the first to comment
Add your comment
Top articles
Latest Comments
State of Failure
11 AprThe Recusant1
My, my...James's article almost sounds as if Trump himself might have gassed the people as a deflection and not Syria at all! Why...why...that's co...
State of Failure
09 AprGypsy
The STOCK MARKET trend has been DOWN. In fact, the word after Friday's Crash was "Standby for Monday." In a Moment of Severe Stress, the so-calle...
Flat-Earther FINALLY Launches Himself Into The Air, Crashes, Goes T...
05 Aprsirqitous
Seen realistically, however, this was money well spent for TPTB, even if they never get that loan repaid! As free advertising for the MSM cover st...
Flat-Earther FINALLY Launches Himself Into The Air, Crashes, Goes T...
03 Aprprljr
The really really really really unfortunate thing is that there are people and i use that word "people" lightly, are for no other explanation that ...
Flat-Earther FINALLY Launches Himself Into The Air, Crashes, Goes T...
28 Marprblmsolved
The really unfortunate thing about this story; For that kind of money he probably could have hired someone with access to a modern performance ...
East Continues Stacking Gold While The West Stacks Paper Illusions
24 Marprljr
If a countries cartel owned private Central Bank acquires the Gold with cartels bank money for the country it supposedly represents who actually ow...
Russia Did It!
23 Marprljr3
I have not trusted whatever the US government has reported,said,demanded since 911. The government ignored the laws of physics in explaining pretty...
Russia Did It!
23 Markevthorne4
One of the most sensible, level-headed articles I've read on this subject for a long time.
Most commented articlesFavoritesMore...
World PM Newsflow
ALL
GOLD
SILVER
PGM & DIAMONDS
OIL & GAS
OTHER METALS