Volatile Week Sees Oil and Palladium Surge Over 8%, Gold and Silver Marginally Higher and Stocks Gain

IMG Auteur
Published : April 14th, 2018
718 words - Reading time : 1 - 2 minutes
( 0 vote, 0/5 )
Print article
  Article Comments Comment this article Rating All Articles  
[titre article pour referencement]
0
Send
0
comment
Our Newsletter...
Category : Gold and Silver

– Gold & silver eke out small gains; palladium surges 8% and platinum 2%
– Oil (WTI) surges over 8% to over $66.90/bbl; supply disruption risk

 U.S. dollar and Treasuries fall; geopolitical, trade war and fiscal concerns
– Stocks rally and shrug off trade war, macro and geo-political risks
– Bitcoin, major cryptos (Ethereum, Ripple etc) rise sharply

– Russia-US tensions high: Trump warns attack ‘could be very soon or not so soon at all’

Source: Finviz

In what has been a volatile week with concerns about the U.S. bombing Syria and a wider war in the Middle East involving Russia, oil has surged over 8% and is headed for the biggest weekly advance in more than eight months.

Tensions and a war in the Middle East may lead to supply disruptions Goldman Sachs has warned. This has led to a buy call on commodities by Goldman Sachs Group Inc.

Precious metals saw gains with palladium surging over 8%, platinum by 2%, silver by 1.1% and gold by 0.6%.

The U.S. dollar and U.S. Treasuries have retreated this week possibly on concerns of the impact of yet another war on the balance sheet and deteriorating fiscal position of the U.S.

The nonpartisan Congressional Budget Office (CBO) is now projecting that annual US budget deficits will rise above the trillion dollar mark in 2020. This is two years sooner than what the agency was projecting just 10 months ago.

Despite these risks, world stocks are set to post their biggest weekly gain in over a month. Investors have so far shrugged off the uncertainty over the prospect of global trade wars and over the escalating tension in the entire Middle East.

Global stock markets have had a volatile week, partly due to U.S. President Donald Trump’s volatile and risky “Twitter diplomacy” and his tendency to abruptly change his mind over key policy and geo-political issues.

Bitcoin surged yesterday to its highest level in two weeks and is over 20% higher in the week. The most popular cryptocurrency has risen back above the $7,500 level.

Bitcoin has seen a very sharp fall this year and fell from an all-time high above $19,000 reached at the end of 2017. Other cryptos also saw strong gains. Yesterday, ethereum was up 10.8 per cent, Ripple 12.4 per cent and Bitcoin Cash 8.3 per cent. All are up sharply in the week.

Bitcoin’s gains are in sharp contrast to gold’s lacklustre performance.

Listen on SoundCloud , Blubrry & iTunesWatch on YouTube below

Gold’s muted performance this week is surprising given the scale of risk and volatility. Investment demand has risen sharply this week and bullion dealers internationally including GoldCore have seen strong demand or gold coins and bars.

Investment demand for paper gold and gold ETFs has also risen sharply on safe haven demand.

The gold price appears to have been capped this week due to a renewed bout of massive, concentrated selling in the futures market. The equivalent of a few hundred tonnes of ‘electronic gold’ in the form gold futures contracts were dumped onto the gold market which capped gold’s gains.

Given the likelihood of a continuing increase in global investment demand, we expect gold prices to eke out further gains in the coming months. Both the technicals and the fundamentals look increasingly positive with macro and geo-political risk set to remain elevated for the foreseeable future.

Listen on SoundCloud , Blubrry & iTunesWatch on YouTube below

News and Commentary

Gold Prices (LBMA AM)

12 Apr: USD 1,345.90, GBP 951.01 & EUR 1,090.99 per ounce
11 Apr: USD 1,345.20, GBP 947.96 & EUR 1,087.86 per ounce
10 Apr: USD 1,335.95, GBP 942.25 & EUR 1,083.46 per ounce
09 Apr: USD 1,328.50, GBP 941.91 & EUR 1,082.33 per ounce
06 Apr: USD 1,325.60, GBP 946.08 & EUR 1,082.75 per ounce
05 Apr: USD 1,327.05, GBP 943.67 & EUR 1,080.75 per ounce

Silver Prices (LBMA)

12 Apr: USD 16.66, GBP 11.74 & EUR 13.50 per ounce
11 Apr: USD 16.57, GBP 11.67 & EUR 13.39 per ounce
10 Apr: USD 16.49, GBP 11.65 & EUR 13.38 per ounce
09 Apr: USD 16.34, GBP 11.59 & EUR 13.32 per ounce
06 Apr: USD 16.28, GBP 11.61 & EUR 13.30 per ounce
05 Apr: USD 16.31, GBP 11.59 & EUR 13.28 per ounce

<< Previous article
Rate : Average note :0 (0 vote)
>> Next article
Mark O'Byrne is executive and research director of www.GoldCore.com which he founded in 2003. GoldCore have become one of the leading gold brokers in the world and have over 4,000 clients in over 40 countries and with over $200 million in assets under management and storage.We offer mass affluent, HNW, UHNW and institutional investors including family offices, gold, silver, platinum and palladium bullion in London, Zurich, Singapore, Hong Kong, Dubai and Perth.
WebsiteSubscribe to his services
Comments closed
Latest comment posted for this article
Be the first to comment
Add your comment
Top articles
Latest Comments
“Collapse Of Civilisation Is On The Horizon” – Attenborough Warns W...
11 DecJ.0
The Climate, it's complicated. Look up the 100,000 year problem. Basically, the Earth has been in an Ice Age about 70 - 80 % of the last one m...
“Collapse Of Civilisation Is On The Horizon” – Attenborough Warns W...
06 DecS W.0
It is difficult to argue with a person like D Attenborough. Who doesn't like his shows? In saying that I am wondering if he, and probably 99% o...
Columbia University Promotes Letting Students Grade Themselves
03 Decvictoriashores
Really who cares
Scientists: The Globe’s Food Supply System Is Broken
04 DecJ.
People need to stop following academics as if they know everything. Science is about continuously evolving your knowledge based on a process of te...
Scientists: The Globe’s Food Supply System Is Broken
02 DecS W.
Oh no! Wheeze all doomed. It is not a matter of eating less meat it is simply a matter of eating less. and eating less of garbage food in part...
How Private Banks Create Bubbles — with the Help of Central Banks
02 Decsneezy67
It appears that we as consumers pay a price for convenience. It is very difficult to haul 10 acres to market on your back or cart. Pieces of gold a...
Why It's Important to Define Money Correctly
29 NovACarr
Great quote!! This is incredibly true. Too many people get so caught up in fiat currency, when it's all about gold if you really look at it. I've g...
Thanksgiving - And Deliver Us From Evil
23 NovBarnsey
Dear Jesse, As much as I admire your journeys down biblical roads, I consider you have missed the point of that mystical journey. Beyond...
Most commented articlesFavoritesMore...
World PM Newsflow
ALL
GOLD
SILVER
PGM & DIAMONDS
OIL & GAS
OTHER METALS