Category: Market Updates

19
Apr
2011

Gold’s Safe Haven Status Confirmed as “Risk Free” Status of US Sovereign Debt Questioned

 Gold and silver closed higher yesterday (+0.45% and +0.65%) after S&P, somewhat belatedly, cut its outlook for the US from stable to negative. While the move seemed to surprise some, many market participants have been warning that this was inevitable for some time.

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18
Apr
2011

$1 Billion of Gold Bars Taken Delivery of by Pension Fund Due to Risk of COMEX Default and Shortages

 Concerns that the sovereign debt crisis may be entering a new phase and the risk of contagion has seen peripheral eurozone bonds fall sharply and the euro fall against major currencies and gold today.

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15
Apr
2011

Gold and Silver Reach New Record Nominal Highs – Little Coverage, Bearish and Superficial Analysis

Gold and silver have reached new all-time and 31-year record highs in trading in London this morning.

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14
Apr
2011

Greek 10-Year Yield Surges Over 13.2% – Euro Falls against Gold and Particularly Silver

Gold is tentatively higher against the euro but mixed against other currencies, while silver is higher again in most currencies. Both probed upward this morning and are exhibiting signs that they may push higher prior to a much anticipated correction. 

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13
Apr
2011

Central Banks Favour Gold and AAA Rated Government Debt – Peripheral Eurozone Debt Cut and Reserve Currencies of EUR and USD Que

 Stocks are higher in Europe after gains in Asia despite losses on Wall Street yesterday. Gold and silver are showing tentative gains after 1% declines yesterday. Gold is particularly strong in yen terms as the yen has weakened against all 16 of its major peers (see cross currency tables). China’s yuan climbed to a 17-year high versus the dollar but is lower against the precious metals.

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12
Apr
2011

Gold Over £900/oz as British Pound Falls Sharply – Soaring Inflation Sees UK Retail Sales Plunge Most on Record

 Gold is marginally lower in all currencies today, except sterling, after UK retail sales plunged the most on record in March due to deepening inflation. Consumer’s finances in the UK and internationally are being negatively impacted by food and energy inflation showing the UK’s vulnerability to a double dip recession and stagflation. Gold rose 0.5% in sterling over the £900/oz mark again.

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11
Apr
2011

Silver New Record Near $42/oz – Speculative Sentiment Remains Tame and Allocations Miniscule Compared to Equity and Bond Markets

 Gold and silver rose to new record nominal highs (all time and 31-year respectively) in Asian trading overnight. Both have given up earlier gains with profit taking being cited. Cash silver surged nearly 3% in Asia to $41.9525 an ounce, a new 31 year high, before trading at $41.31 an ounce. 

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08
Apr
2011

Perfect Storm for Gold & Silver – Silver Surges 6% in Week to $40.28 – GFMS Forecast $50/oz This Year

 Gold and silver reached new record all time and 31-year highs respectively again yesterday and this morning – both nominal highs. Silver has surged to a new 31-year nominal high of $40.28/oz and may now target next resistance at $50/oz – the 1980 nominal high. 

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07
Apr
2011

Gold May Fall on ECB Rate Rise but Rising Interest Rates Likely to Lead to Much Higher Prices

 Gold’s two consecutive days of nominal record highs have seen some profit taking as oil is flat, the dollar is marginally higher and the euro has fallen. The ECB’s 0.25 % interest rate hike may lead to further profit taking today but rising interest rates in an increasingly inflationary environment will be positive for gold as it was from 1965 to 1981 (see charts below). 

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06
Apr
2011

Surging Oil and Deepening Inflation – Gold & Silver Rise to Record Nominal Highs at $1,460.92 and $39.63

In trading in London this morning, gold reached a new record nominal high ($1,460.92/oz) and silver a new 31-year nominal high ($39.63/oz) as investors bought the precious metals to hedge deepening sovereign debt risk (in the EU but also in the US with the threat of a federal budget shutdown), geopolitical risk and deepening inflation.

Brent crude reached $123.00 a barrel this morning and looks set to challenge the high seen in July 2008 of $145.49.

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