Gold News

Currency traders wipe out gold's 2006 gains

A sharp rally in Sterling at the start of today's European trading has erased almost all of this year's gains for British gold investors. Gold has also pulled back to January prices Eurozone gold buyers, while Dollar and Yen investents in gold remain unchanged from 1 month ago.

The AM Fix in London priced one ounce of gold just below £314, a level first crossed by this bull market in January. Sterling shot through $1.96 against the Dollar on strong house-price news, and fresh M&A deals in the London stock market.

"The British market has seen an M&A boom and nothing we look at suggests it's over," said a strategist at Morgan Stanley. But an analyst at RBS points out that "80 to 85% of rumours turn out to be either misinformation or just somebody repeating a story that was maybe even months old."

"Will the FTSE go any further on the back of these rumours?" he asks. "It shouldn't really...There is already a massive premium built in."

There's a massive premium built into Sterling itself today. Yet the world's central bankers just can't get enough of Britain's currency right now. What might it mean for investors buying gold in any major currency today? Click here for the full story...

Adrian Ash

Adrian Ash, BullionVault Gold News

Adrian Ash is director of research at BullionVault, the world-leading physical gold, silver and platinum market for private investors online. Formerly head of editorial at London's top publisher of private-investment advice, he was City correspondent for The Daily Reckoning from 2003 to 2008, and he has now been researching and writing daily analysis of precious metals and the wider financial markets for over 20 years. A frequent guest on BBC radio and television, Adrian is regularly quoted by the Financial Times, MarketWatch and many other respected news outlets, and his views from inside the bullion market have been sought by the Economist magazine, CNBC, Bloomberg, Germany's Handelsblatt and FAZ, plus Italy's Il Sole 24 Ore.

See the full archive of Adrian Ash articles on GoldNews.

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