Gold Lower as Market Embraces Risk Again – Chinese Inflation Still a Worry

Gold lost ground yesterday and is weak again this morning. The risk trade gathered strength as traders took a bullish view on the global outlook. Greek progress outweighed concerns over China’s slow down in manufacturing, as represented by the Chinese Purchasing Managers Index’s lowest number in 20 months. Continuing inflation concerns across Asia are prompting central banks to engage in monetary tightening. China’s inflation is still uncomfortably high, standing tall at 5.5%, which exceeds official targets of 4% by a considerable margin. Oil is lower at $94.35. compressed by lower Chinese demand.

China continues to be the economic growth story of the past decade. How it responds to the oncoming fiscal stresses, unemployment concerns, civil unrest and an increasingly mobilised population is anyone’s guess. Transitioning from the world’s biggest producer to one of the world’s biggest consumers without agonising and painful economic contractions is a worry. Gold is being accumulated in record amounts by the Chinese public – this should have a positive net stabilising effect.

GOLD
Gold is trading lower at $1,493.71/oz., €1,028.16/oz and £931.27/oz. Support is forming up at $1,491/oz, with retracement to $1485/oz very possible.

SILVER
Silver is trading lower at $34.25/oz, €25.58/oz and £21.29/oz.

From the GoldCore Trading Desk: GoldCore traders report a slight sentiment shift in client outlook, shifting more to the longer-term debate over economic growth, may be indicative of reducing immediate concerns over Greece. GoldCore has recently secured significant capacity in 1 oz gold bar format, interest is high as premiums nice and tight.

Mark is travelling on business, this market update has been authored by Stephen Flood.

Mark O'Byrne

Also on news-goldcore-com

Videos

Gold and Silver Chart Analysis January 2023 with Patrick Karim

Gold, Rate Hikes and The Central Bank Illusion?

Top 5 Gold Buyers’ Motives Revealed

Blog posts

China and the US at sovereign debt war

US dollar hegemony has long been a standard feature of the global financial and economic system. But developments in recent years and months (weeks, even) suggests there are more than a handful of countries who are looking to rely less on the US dollar. Instead countries who have long been at the mercy of the […]

READ MORE

What happens if the debt ceiling raises

It’s that time again when the US government has to prepare itself for an internal battle to raise the debt ceiling so it can meet various obligations. This is a merry dance that has been danced before, as we mention below. For sure, every time it happens fewer and fewer people are convinced of the […]

READ MORE

Gold and Silver Chart Analysis January 2023 with Patrick Karim

This week we bring you some silver candlesticks. Sadly not the nice shiny ones your grandmother left you, no these are much more useful. We’re talking about candlesticks on charts and what they can tell us about both the gold and silver price in the coming weeks.  Patrick Karim of NorthStarBadCharts.com joined us over on […]

READ MORE

Featured

The King and Queen will be Gold and Silver

READ MORE
Newsletter
Category
Archives
Popular

No posts available

Videos

Gold and Silver Chart Analysis January 2023 with Patrick Karim

Gold, Rate Hikes and The Central Bank Illusion?

Top 5 Gold Buyers’ Motives Revealed

Blog posts

China and the US at sovereign debt war

US dollar hegemony has long been a standard feature of the global financial and economic system. But developments in recent years and months (weeks, even) suggests there are more than a handful of countries who are looking to rely less on the US dollar. Instead countries who have long been at the mercy of the […]

READ MORE

What happens if the debt ceiling raises

It’s that time again when the US government has to prepare itself for an internal battle to raise the debt ceiling so it can meet various obligations. This is a merry dance that has been danced before, as we mention below. For sure, every time it happens fewer and fewer people are convinced of the […]

READ MORE

Gold and Silver Chart Analysis January 2023 with Patrick Karim

This week we bring you some silver candlesticks. Sadly not the nice shiny ones your grandmother left you, no these are much more useful. We’re talking about candlesticks on charts and what they can tell us about both the gold and silver price in the coming weeks.  Patrick Karim of NorthStarBadCharts.com joined us over on […]

READ MORE

Featured

The King and Queen will be Gold and Silver

READ MORE