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 Price Hits Mid-July Highs as China Stimulus 'Fades Fast' and 'Spreadonomics' Hit Italy

Tuesday, 10/23/2018 13:30
GOLD PRICES jumped to their highest Dollar price since mid-July in London trade on Tuesday, hitting $1236 per ounce as world stock markets fell after China's main index erased most of yesterday's stimulus-fueled rally.
 
Gold prices came within 40 cents of $1240 per ounce – adding 6.8% from August's plunge to start-2017 levels – as geopolitical tensions rose with Turkey's President Erdogan detailing what Ankara's intelligence services claim is the "naked truth" about the Saudi murder in Istanbul of US-based journalist Jamal Khashoggi.
 
Silver yet again failed to follow gold higher, trading up to only 1-week highs at $14.80 per ounce as crude oil hit 1-month lows and other industrial commodities fell.
 
Shanghai's CSI 300 index lost 2.7% and the Yuan dropped to new 21-month lows versus the Dollar even as Beijing followed the weekend's raft of supportive measures and promises with new support for private debt and another $17 billion "liquidity injection" of short-term loans to commercial lenders.
 
"Nobody expected the policy effect to fade out so soon," the South China Morning Post quotes one Hong Kong analyst.
 
"The last two weeks of steep correction indicate that the A-share market is in panic mode," says brokerage CLSA in a note on China's domestic Yuan-denominated equities.
 
The price of wholesale gold bullion bars rose faster still on Tuesday for non-US investors, gaining 1.3% for the week so far in Euro and Sterling terms as the EuroStoxx 600 index fell 1.1% and London's FTSE-100 fell below the 7,000 mark – a new record high when first reached this March.
 
Wall Street futures put the S&P500 on track to open lower yet again, heading for its 14th loss in 17 sessions so far this October.
 
Alongside gold prices, developed-world government bond prices also rose, cutting the cost of borrowing for Western governments. But Asia, Africa, East Europe and Latin America bond prices fell, adding extra stress to emerging-market borrowers.
 
The flight into Treasuries drove the 10-year US bond yield down another 5 basis points to 3.15%, almost one-tenth of a percentage point below this month's new 7-year highs.
 
Chart of US 10-year T-bond yields vs gold price. Source: St.Louis Fed
 
Italy's bond yields also eased back on Tuesday but not as fast as other Eurozone markets after Rome's Council of Ministers approved the left-right coalition government's 2019 budget plans, including the "Quota 100" early retirement scheme, requiring 38 years of state-pension contributions.
 
Life expectancy in Italy currently stands above 83 years old, and is forecast to keep rising.
 
Rome's spread over German Bund yields today rose back above 300 basis points – the 5-year high reached last month – and the spread over Spain's borrowing costs rose back near this month's 20-year high.
 
"The 'spreadonomics' is unforgiving," says Italian financial newspaper Il Sole 24 Ore, "and governments cannot free themselves from the judgment of investors."
  • 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.