{"id":44855,"date":"2013-12-02T10:12:57","date_gmt":"2013-12-02T15:12:57","guid":{"rendered":"http:\/\/countingpips.com\/forex-news\/?p=44855"},"modified":"2013-12-02T10:12:57","modified_gmt":"2013-12-02T15:12:57","slug":"market-looks-improved-us-data-gold-silver-reverse-rally","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex-news\/2013\/12\/02\/market-looks-improved-us-data-gold-silver-reverse-rally\/","title":{"rendered":"Market Looks to ‘Improved’ US Data as Gold, Silver Reverse Rally"},"content":{"rendered":"

London Gold Market Report<\/strong><\/p>\n

from Adrian Ash<\/strong><\/p>\n

BullionVault<\/strong><\/a><\/p>\n

Mon 2 Dec 08:25 EST<\/strong><\/p>\n

FRIDAY’S late 1.1% rally in gold was reversed in Asian and London trade Monday morning, with the metal trading back below $1240 per ounce as world stock markets also slipped with commodities.<\/p>\n

\u00a0Silver tracked gold lower, falling from $20 per ounce at the start of Asian dealing to hit near 1-week lows $19.63.<\/p>\n

\u00a0The rising Pound meantime, touching its highest level since Sept.2011 after stronger-than-forecast UK house price and manufacturing data, pushed gold in Sterling terms down to new 3-year lows beneath \u00a3755 per ounce.<\/p>\n

\u00a0“We are looking for a push toward the [Dollar] range lows near $1180,” says London market-maker Barclays in a note, pointing to the 3-year low gold hit at end-June.<\/p>\n

\u00a0“It would take a break back above former range lows in the 1520 area to suggest any kind of a base developing…If equity markets remain firm and if prices breach $1200, the weakness is likely to be exacerbated.”<\/p>\n

\u00a0“Many countries stock exchanges,” Germany’s\u00a0Der Spiegel\u00a0quotes economist and financial historian Robert Shiller, “are at a high level, and prices have risen sharply in some property markets.<\/p>\n

\u00a0“I am\u00a0most worried about the boom in the US stock market<\/a>…because our economy is still weak and vulnerable.”<\/p>\n

\u00a0But looking ahead to Friday’s US jobs data in the monthly Non-Farm Payrolls report, “as long as US economic data shows improvement, the probability of sooner-than-later tapering becomes more real,” says chief investment strategist Wang Xiaoli at China brokerage CITICS Futures Co.<\/p>\n

\u00a0With officials from the US Federal Reserve saying again last week that better jobs data could spur them to cut the $85 billion of monthly\u00a0quantitative easing<\/a>\u00a0in place since end-2012, “That\u00a0should keep downward pressure<\/a>\u00a0on gold,” reckons Wang.<\/p>\n

\u00a0Gold managed “something of a recovery at the end of last week,” says one London trading desk in a note.<\/p>\n

\u00a0Friday’s rally, reckons Edward Meir writing for US brokerage INTL FCStone, came “on news of political tensions emanating out of Asia,” with China’s airforce scrambling jets in response to Japanese and US flights over airspace claimed by the Communist state.<\/p>\n

\u00a0US vice president Biden is this week visiting China, Japan and South Korea.<\/p>\n

\u00a0Looking at the gold market, “Physical flows were limited last week with the Thanksgiving holiday,” says a note from ANZ Bank, “but light physical related selling [was] seen above $1250 per ounce.”<\/p>\n

\u00a0New data released Friday by the London Bullion Market Association showed the average daily volume of wholesale gold traded in October between the LBMA’s clearing-member banks rising slightly from September.<\/p>\n

\u00a0Coming just shy of Oct. 2012 at 19.8 million ounces, however, that was the lowest October reading since 2010.<\/p>\n

\u00a0Last month saw\u00a0sales of gold coins<\/a>\u00a0by leading bullion refiner the Perth Mint in Western Australia fall by one third, it said on its website.<\/p>\n

\u00a0Amid the drop in prices \u2013 the worst Dollar price drop since 1978 \u2013 “Evidently, some buyers still expect gold to fall even further,” notes Commerzbank’s commodity team, “and have thus been exercising restraint when it comes to purchasing coins.”<\/p>\n

\u00a0With Google searches for the word “Bitcoin” rising 7-fold in the last month alone, the\u00a0Financial Times\u00a0reports that the UK’s Royal Mint \u2013 currently state-owned \u2013 is considering “the possibility of manufacturing a physical commemorative coin with a Bitcoin theme.”<\/p>\n

Adrian Ash<\/strong><\/span><\/a><\/p>\n

BullionVault<\/strong><\/span><\/a><\/p>\n

Gold price chart, no delay | Buy gold online<\/strong><\/span><\/a><\/p>\n

 <\/p>\n

Adrian Ash is head of research at BullionVault, the secure, low-cost gold and silver market for private investors online, where you can fully allocated bullion already vaulted in your choice of London, New York, Singapore, Toronto or Zurich for just 0.5% commission.<\/p>\n

 <\/p>\n

(c) BullionVault 2013<\/p>\n

Please Note: This article is to inform your thinking, not lead it. Only you can decide the best place for your money, and any decision you make will put your money at risk. Information or data included here may have already been overtaken by events \u2013 and must be verified elsewhere \u2013 should you choose to act on it.<\/p>\n

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 <\/p>\n","protected":false},"excerpt":{"rendered":"

London Gold Market Report from Adrian Ash BullionVault Mon 2 Dec 08:25 EST FRIDAY’S late 1.1% rally in gold was reversed in Asian and London trade Monday morning, with the metal trading back below $1240 per ounce as world stock markets also slipped with commodities. \u00a0Silver tracked gold lower, falling from $20 per ounce at … <\/p>\n

Continue reading “Market Looks to ‘Improved’ US Data as Gold, Silver Reverse Rally”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-44855","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts\/44855","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/comments?post=44855"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts\/44855\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/media?parent=44855"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/categories?post=44855"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/tags?post=44855"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}