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 Prices Sink as 'Kill or Cure' Stimulus Spikes Real Interest Rates Fastest Since 2013

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

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

List of authors

Gold Bullion Falls as US Inflation Rises, 'Rates Going Up' Says Faber, Miners Drop Twice as Fast

Thursday, 9/14/2017 14:40
GOLD BULLION held near 2-week Dollar lows in London trade Thursday as new data showed an uptick in US inflation, keeping a likely December rate rise from the Federal Reserve "on the table" according to some analysts.
 
The Dollar spiked on the FX market to its highest level against the Euro so far in September, while world stock markets retreated from new all-time record highs.
 
Consumer prices rose 1.9% year-on-year in August, today's figures said, just beating analyst forecasts.
 
Next week's US Fed meeting "will carry more weight" for gold prices reckons analyst Ed Meir at brokerage INTL FCStone, "and we suspect it will ultimately be supportive for the precious metal, as the Fed should again come across as quite dovish, especially in light of the recent natural disasters in both Texas and Florida."
 
Thursday saw the Bank of England mark the 10th anniversary of Britain's first High Street banking run since 1866 by holding interest rates at a record-low of 0.25% with its record £435bn of QE bond purchases also maintained.
 
Two of the nine policy team voted to raise, and the Bank's accompanying statement called the economic picture "if anything, slightly stronger.
 
"Monetary policy could need to be tightened by a somewhat greater extent...than current market expectations."
 
The Pound leapt on the news, reaching its strongest vs. the Euro since 20 July and driving the gold bullion price in Sterling terms down to 1-month lows at £990 per ounce, more than 4% below this month's 1-year high.
 
The UK hasn't hiked rates since July 2007, immediately before the 'credit crunch' in global money markets led to the crisis at Northern Rock that September.
 
"Interest rates [worldwide] are now likely to no longer move lower," says Swiss author and money manager Marc Faber, speaking this morning to CNBC in Hong Kong.
 
"There are some inflationary pressures in some sectors of the economy, and I think central banks in Europe and especially in Japan will reduce their purchases of assets somewhat."
 
Meantime, "Gold is an under-appreciated asset," Faber went on, noting how in the US "some stocks are up 20% and they are talked about every day. But from the December lows of 2015, the GDX gold[-mining] ETF is up more than 100%...a fantastic performance compared to the S&P."
 
Hitting 12-month highs with the Dollar gold price at the start of September, the VanEck Vectors Gold Miners ETF (NYSEArca:GDX) has since retreated more than 5% – twice the drop in bullion prices.
 
Chart of gold bullion vs. gold-mining share prices (GDX ETF), rebased to Sept. 2007. Source: BullionVault
 
The trust fund, which holds major gold mining producers led by Barrick (NYSE:ABX) and Newmont (NYSE:NEM), initially tracked gold prices after the global credit crunch began in summer 2007, but it then sank amid the financial crisis of late 2008.
 
Back in physical bullion, "[We're] seeing initial failure at [gold's] 4-year downtrend [now] at $1349," says the latest weekly technical analysis from Germany's financial services group Commerzbank, joining the peaks of July 2013 with July 2016 and the start of this month.
 
"We would allow for this [resistance] to hold...[but] dips lower should remain well supported by the uptrend channel support line" drawn by Commerzbank from gold's start-July lows and now coming in at $1306.
 
"The steep upward trend from July will be an important support near term," agrees the technical analysis team at French bank Societe Generale, pointing to levels around $1295-1300.
  • 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 February 2021

Silver Investor Index

Record New Year 2021

 

 

 

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.