Monthly Archives: September 2010

13
Sep
2010

Gold Lower on Basel III and Chinese Data Despite Chinese Diversification Talk

Gold

Gold and the dollar have fallen as risk appetite has returned due to the Basel III regulations and the positive economic data out of China. The euro in particular has rallied sharply in what would appear to be a relief rally after the recent weakness. Gold and silver fell marginally last week which has clouded the technical picture and could lead to momentum driven weakness this week. However, the medium and long term fundamentals remain sound and should reassert themselves if there is a period of correction and consolidation.

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10
Sep
2010

New Record Nominal High Above $1,265/oz Prevented by Determined Sellers at $1,260/oz Level

Gold

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09
Sep
2010

Pounds Falls on UK Trade Deficit, QE2 and Economic Recovery Concerns – Gold Rises to £816/oz

Gold

Gold is flat in dollars but higher in euros, Swiss francs and particularly British pounds this morning (see Cross Currency Table). Jitters about European sovereign debt markets is keeping gold above $1,250/oz  and near record highs of $1,265/oz. The complacency of recent weeks is giving way to the gradual realisation that the worst may not be over yet, in terms of the global financial crisis and this could lead to a challenge of $1,300/oz in the short term rather than the long term.

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08
Sep
2010

European Bond Spreads Widen Again – Gold Strong in All Currencies and is Whisker from New Intra Day Record in US Dollars

Gold

Gold rose again yesterday and had a new record daily high close (nominal) as renewed concerns about European banks and sovereigns led to a flight to the relative safety of US Treasuries, German bunds, the yen and the Swiss franc. Gold also rose in yen and Swiss franc terms yesterday showing that it is increasingly trading as a currency rather than a commodity. Gold surged in the euro and is again challenging the €1,000/oz level.

Gold is currently trading at $1,258.10/oz, €991.64/oz, £814.73/oz.

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06
Sep
2010

Gold Up 1% and Silver Up 4% Last Week – Maintain Upward Momentum and Challenge Resistance

Gold

Last week’s early September relief rally continued this morning as equities have risen again in Asia and Europe. Gold is one of the strongest currencies in the world this morning, along with the yen. While the dollar is flat, sterling has fallen sharply against all currencies on UK economy concerns and gold in sterling terms has risen from £806/oz to £811.20/oz (see Cross Currency Table).

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03
Sep
2010

Monthly Markets Review: Risk Aversion Rises in August as Double Dip Concerns Grow

August and the summer are now over and investors and savers are now focusing on the autumnal months ahead. Stocks internationally had their worst August performance since 2001 and the ISEQ fell 7.2% in the month. Mounting concerns about the health of the economic recovery in Ireland, the US and internationally saw investors move into government bonds and gold. Some respite came due to the falling price of oil – oil was down 8.9%, its first monthly decline since May.

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02
Sep
2010

Precious Metals Challenge Resistance Levels as Physical Market Remains Tight

Gold

Risk appetite increased yesterday as the first day of the new month saw equity buyers return and bond prices fall. Gold and silver prices fell marginally but remained near multi week highs and in gold’s case very near the all time record high (nominally). European equity markets are a bit more tentative this morning and the pound and the dollar have come under selling pressure.

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01
Sep
2010

Gold Rises 5.6% in August to Record Monthly High and Near Record Nominal High

Gold

After yesterday’s 1% rise, gold traded sideways in Asia but has  risen again in early European trading as the dollar has fallen and oil risen after yesterday’s sharp falls. Gold has risen in dollars, pounds , yen and Swiss francs which are all weaker today but is slightly weaker against the euro and commodity currencies. Gold was up 5.6% in August thereby regaining the 5% losses seen in July.

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