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, Silver Fall with Stocks, Inflation Outlook as Covid and Lockdowns Worsen, Pension Rows Hit China and Spain

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

  • January 2021 (18)
  • December 2020 (24)
  • November 2020 (23)
  • October 2020 (25)
  • September 2020 (25)
More...

List of authors

Gold Prices Slip 'For Now' as Trump's Mob Retreats, Bitcoin Jumps Again

Thursday, 1/07/2021 14:35
GOLD PRICES slipped further on Thursday, extending yesterday's 2.1% plunge from new 9-week highs even as US interest rates lagged inflation forecasts by a wider margin – usually a driver of higher gold prices – and US President Donald Trump was condemned worldwide for inciting angry supporters to storm the Capitol in a violent and failed attempt to stop Democrat Joe Biden taking over at the White House in 2 weeks' time.
 
With Spain's stock markets falling while the rest of Europe's bourses rose again, gold priced in the Euro traded more than €30 per ounce below yesterday's 7-week peak at €1591.
 
UK shares and gold prices also fell even as the Pound retreated on the FX market, dropping 2.0% from Wednesday's top of £1438 per ounce.
 
"For several hours, our collective strength had politicians in Washington in absolute terror," Newsweek reports a post on Telegram from Trump's so-called Proud Boys supporters.
 
"The treacherous pawns [ie, cops] were also terrified."
 
The drop in gold and silver prices – down 2.7% from Wednesday morning's 4-month highs near $28 per ounce – "looks very much like 'buy the rumour, sell the fact' – at least for now," says analyst Rhona O'Connell at equity and commodities brokerage StoneX, noting that the 117th Congress will be the first all-Democrat "blue sweep" since the first two years of President Obama's first term in 2009-2011.
 
Gold priced in Dollars rose 55.4% during that time.
 
With the Georgia run-off for Senate seats going the way of the Democrats on Wednesday while Joe Biden was confirmed as the next President by Congress this morning, the US election result "opens the door to a stronger [fiscal] stimulus programme," says O'Connell.
 
Chart of gold vs. US federal debt as % of GDP. Source: St.Louis Fed
 
Following a personal appearance by Trump yesterday afternoon, what one channel of Fox News called a "pro-Trump mob" smashed property, chanted "Stop the steal!" and clashed with police who fired tear gas and shot one protester dead as 3 other died of "medical emergencies".
 
While bond yields continued to rise meantime Thursday, market-implied inflation rates rose faster, holding real interest rates on 10-year US debt 3 basis points lower at minus 1.05%.
 
Calling the uptick in nominal bond yields "an awakening moment" for investors, "People will start liquidating gold looking for other opportunities out there," reckons one Comex futures broker quoted by Bloomberg.
 
But giant gold ETF trust fund the SPDR product (NYSEArca: GLD) however saw no net change in size on Wednesday, while smaller competitor the iShares Gold Trust (NYSEArca: IAU) expanded by 0.1%, suggesting that yesterday's price spike and retreat were led instead by trading in derivatives contracts.
 
In the physical market, gold demand net of client selling meantime turned positive BullionVault after marking 2 sessions of net liquidation, while trading volumes held 28.0% above last year's average at $6.1 million.
 
So-called cryptocurrency Bitcoin meantime rose above $38,000 in price early Thursday, doubling from this time 4 weeks ago.
 
Analysts at giant US investment bank (and leading London bullion market-maker) J.P.Morgan said this week Bitcoin "could" rise to $146,000 if its total market capitalization grows to match the current value of all investment gold.
 
US banks can interact with so-called "stable coins" backed by the Dollar or other recognized assets, financial regulator the OCC said Monday.
 
Here in the UK however, Thursday saw a ban on private "retail" investors trading derivatives on cryptocurrencies come into force following action by City watchdog the FCA.
 
Accused by one "blockchain investor" as choosing "to abdicate rather than lead", the FCA says crypto-derivatives "cannot be reliably valued by retail consumers" with the sector also prey to "market abuse and financial crime".
 
The aggregate market value of all so-called crypto-currencies has now risen 5-fold in the last 12 months to more than $1 trillion according to CoinGecko – around a tenth of all the gold ever mined in history.
 
Still the largest at over 70% of crypto's notional value, Bitcoin was created in 2009 by an anonymous programmer.
 
Of the 2,218 "coins" now showing a market-cap on CoinGecko's list, the smallest – UpToken – has over 78 million units in circulation, worth in total just 0.0059 US cents.
 
Back in gold, November's price drop – the steepest gold drop in 4 years – coincided with a return to the net selling among central banks as a group seen in August and September according to data collated and published Thursday by the mining industry's World Gold Council.
 
Before August's new all-time record highs in the gold price above $2000 per ounce, net selling by the official sector was seen in only 8 months across the prior 5 years.
  • 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
5 January 2020

Gold Investor Index

Gold investing +58% in NY21

 

 

 

LBMA webinar
21 January 2021

LBMA

London gold trading

 

 

 

International
Investment

16 December 2020

Gold 2021

Gold in 2021

 

 

 

LBMA Alchemist
1 December 2020

Newton

True Gold/Silver Ratio

 

 

 

  •  Email us

Market Fundamentals

  • 'Cut Bullion Duty to Cut Smuggling': India's Gold Industry
  • Platinum Price Hits 4-Year High Even as Electric Beats Diesel Cars in Europe
  • Record Investing Pushes 'Industrial' Silver and Platinum into Deep Deficits
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.