We use cookies (including third-party cookies such as Google) to remember your site preferences and to help us understand how visitors use our sites so we can improve them. To learn more, please see our privacy policy and our cookie policy.

To agree to our use of cookies, click 'Accept' or choose 'Options' to set your preferences by cookie type.

Options Accept
BullionVault

CHARTS

  • English
  • Deutsch
  • Español
  • Français
  • Italiano
  • Polski
  • 日本語
  • 简体中文
  • 繁體中文
  • Daily audit
  • Help
  • Contact
  • Deposit
  • Login
  • Open account
  • ABOUT US
    • About BullionVault
    • In the press
    • Reviews
    BUY/SELL BULLION
    • Vaulted gold & silver
    • -Live order board
    • -Daily Price
    • Coins for delivery (UK)
    INVESTMENT GUIDE
    • Guide to gold
    • -How to buy gold
    • -Gold investment
    • -Gold investment plan
    • -Investment insurance
    • -Compare asset performance
    • Guide to silver
    • -How to buy silver
    • Guide to platinum
    • -How to buy platinum
    GOLD NEWS
    • Gold news front page
    • -Gold price news
    • -Opinion & analysis
    • -Market fundamentals
    • -Gold/Silver Investor Index
    • -Infographics
    CHARTS
    • Gold price
    • Silver price
    • Platinum price
    • Price alerts
  • Login
  • Open account
  • BUY/SELL BULLION
  • Vaulted gold & silver
    • ⤷
    • Live order board
    • Daily Price
  • Coins for delivery (UK)
  • INVESTMENT GUIDE
  • Guide to gold
    • ⤷
    • How to buy gold
    • Gold investment
    • Gold investment plan
    • Investment insurance
    • Compare asset performance
  • Guide to silver
    • ⤷
    • How to buy silver
  • Guide to platinum
    • ⤷
    • How to buy platinum
  • GOLD NEWS
  • Gold news front page
    • ⤷
    • Gold price news
    • Opinion & analysis
    • Market fundamentals
    • Gold/Silver Investor Index
    • Infographics
  • CHARTS
  • Gold price
  • Silver price
  • Platinum price
  • Price alerts
  • ABOUT US
  • About BullionVault
  • In the press
  • Reviews
  • Help
  • Contact
  • Daily audit
    • English
    • Deutsch
    • Español
    • Français
    • Italiano
    • Polski
    • 日本語
    • 简体中文
    • 繁體中文

Gold News

Live support

NEED HELP? ASK US NOW

Search form

Gold News front page

Gold Price News

Gold Now 'Dead, Irrelevant' Say Crypto Pundits as Rates Rise Again Despite Weak US Jobs Data

More...

Gold Investing In Depth

Learn about gold bullion bars

Learn about gold bullion coins (and costs)

Gold investment: Why & how?

Gold Investment Analysis

  • Latest Gold Investor Index
  • Diversification: Gold as investment insurance
  • 40-year Asset Performance Comparison Table

Gold Articles

Opinion & Analysis

Gold Price News

Investment News

Gold in History

Gold Books

Gold Investor Index

Gold Infographics

Archive

  • March 2021 (3)
  • February 2021 (23)
  • January 2021 (25)
  • December 2020 (24)
  • November 2020 (23)
More...

List of authors

Gold Bullion -1.5% for Week as Fed Points US Rates Higher, But ETF Investing Expands Again

Friday, 5/20/2016 15:16
GOLD BULLION prices slipped from a morning rally in London trade Friday afternoon, heading into the weekend $10 per ounce above yesterday's 3-week low as world stock markets rallied from new 6-week lows.
 
The price of gold bullion still held 1.5% down for the week as the Dollar rose further following Wednesday's news that the US Federal Reserve will "likely" raise US interest rates at its June meeting.
 
Exchange-traded trust funds tracking the gold price expanded again, however, with shareholder demand needing another 15 tonnes over the last week to back the giant SPDR Gold Trust (NYSEArca:GLD) – now back to its largest size since November 2013.
Chart of SPDR Gold Trust (NYSEArca:GLD) holdings vs bullion price
 
"Some investors have clearly been viewing the lower price level as an attractive opportunity to buy," says the commodities team at German financial services group Commerzbank.
 
"This should protect the gold price from any further slide. We are confident that it will stabilise at roughly its present level."
 
But "gold's rally has now started to fade," says strategist Jonathan Butler at Japanese conglomerate Mitsubishi, "and elevated gold COMEX [derivatives] longs and new ETF positions may not prove to be all that sticky if 'risk-on' mentality returns.
 
"It is hard to see what the catalyst for another big move higher across the precious complex will be, unless the Fed pushes out rate expectations again or...an extension of monetary stimulus at other central banks."
 
Betting on US futures contracts now puts the odds of Fed rates reaching 1.0% from the current 0.50% by the September meeting at nearly 1-in-5 – up from just 1-in-50 a month ago.
 
Ten-year US Treasury yields held at the highest level so far in May at 1.87%, markedly above the 33-month lows hit in early February.
 
Looking at the technical picture, "The strength in the USD was a catalyst," agrees Swiss refining group MKS's Asian trading desk, "[but] there were also several significant technical levels which were breached which exacerbated the move. 
 
"The mid/late session recovery technically keeps gold above the medium-term uptrend."
 
"The momentum indicator is showing signs of weakness," counters a technical note from London bullion bank Scotia Mocatta's parent Scotiabank's New York office, "and [the] current view on gold is bearish, confirmed by [Thursday's] close below $1256.
 
"Support now comes in at $1243...and the next downside target is in the $1205...area."
 
Commodities meantime bounced Friday from their sharp mid-week sell-off on the US Fed's latest meeting notes, but silver held only at $16.54 per ounce, down 3.3% from last Friday and heading for its lowest weekly finish since mid-April.
 
China's new gold bullion pricing benchmark had earlier fixed on Friday afternoon in Shanghai unchanged from Thursday, but 1.1% down for the week in Yuan terms.
 
Shanghai's premium over spot quotes for London delivery rose above $3 per ounce, doubling this week's previous average incentive to new imports from the world's central gold dealing hub.
 
World No.2 gold bullion consumer nation India meantime " suddenly seems to be losing appetite," says an article at the Economic Times from fund manager Chirag Mehta, noting weak demand data for Q1.
 
"This could be on account of reduced space towards discretionary spend as the economy tries to recover from lower growth and the end effect of two years of back-to-back droughts."
  • Reddit logo
  • Facebook logo
  • Twitter logo
  • Google logo
  • Yahoo logo
  • LinkedIn logo
  • Digg logo
  • StumbleUpon logo
  • Technorati logo

Adrian Ash is director of research at BullionVault, the physical gold and silver 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 is now a regular contributor to many leading analysis sites including Forbes and a regular guest on BBC national and international radio and television news. Adrian's views on the gold market have been sought by the Financial Times and Economist magazine in London; CNBC, Bloomberg and TheStreet.com in New York; Germany's Der Stern; Italy's Il Sole 24 Ore, and many other respected finance publications.

See the full archive of Adrian Ash articles on GoldNews.

Please Note: All articles published here are 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 – and must be verified elsewhere – should you choose to act on it. Please review our Terms & Conditions for accessing Gold News.

Follow Us

Facebook Youtube Twitter LinkedIn

 

Mobile apps

 - live trading 24/7

 - buy & sell instantly

 - up-to-the-second charts

 

 

 

Daily news email
Go to 'communications settings' 

Get the latest daily gold price news free by email

Latest gold news by email

 

 

 

Gold Investor Index
2 March 2021

Silver Investor Index

Silver beats gold again

 

 

 

LBMA webinar
21 January 2021

LBMA

London gold trading

 

 

 

Bloomberg TV
1 February 2021

Bloomberg TV

r/silver-surge

 

 

 

The Alchemist
1 December 2020

Newton

True Gold/Silver Ratio

 

 

 

  •  Email us

Market Fundamentals

  • Green Energy: Platinum Key to New 'Hydrogen Catapult'
  • 2021 Gold Price to Rise 11.5%: LBMA Forecast
  • 'Cut Bullion Duty to Cut Smuggling': India's Gold Industry
More...
  • Cost calculator
  • Cookies
  • Terms & conditions

©BullionVault Ltd 2005-

  • Twitter
  • Facebook
  • LinkedIn
  • YouTube

Save your cookie preferences

We use cookies to remember your site preferences, record your referrer and improve the performance of our site. For more information, see our cookie policy.

Please select an option below and 'Save' your preferences.

Save

You can update your cookie preferences at any time from the 'Cookies' link in the footer.

Secure auto-logout warning

You have not been active for some time.

For your security you will be logged out in   minutes unless you take action.