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 Erases Week's $25 Gain as Factory-Gate Inflation Spike Sees Everything Fall But the Dollar

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

  • April 2021 (9)
  • March 2021 (26)
  • February 2021 (23)
  • January 2021 (25)
  • December 2020 (24)
More...

List of authors

Gold Prices Display "Safe Haven Strength", Fiscal Cliff "Means Stocks Could Be Worth Less"

Thursday, 11/08/2012 13:25

Gold Prices hovered below $1720 per ounce Thursday morning in London – 2.4% up on the week so far – while stocks recovered some ground following losses yesterday, and the Dollar ticked higher, as central banks in the UK and Europe left monetary policy unchanged.

Silver Prices hovered close to $32 an ounce – 3.4% up on last week's close – while other commodities edged higher. US Treasury bond prices gained while those for UK and German government debt fell.

"Gold is holding up well in the face of Dollar strength yesterday and today," says commodities strategist Walter de Wet at Standard Bank.

A day earlier, the Dow Jones saw its biggest one-day drop this year on Wednesday, falling 2.4%. The S&P 500 also fell 2.4%, the biggest one-day drop since the start of June, as focus shifted to Congress's prospects of avoiding the so-called fiscal cliff of tax cut expiries and spending cuts currently scheduled for the start of 2013.

Policies aimed at avoiding the fiscal cliff would mean that "the marginal income-tax rate is probably going to go up...from 35% to 40%, capital gains from 15% to 20%, dividends from 15% to who knows where," Bill Gross, co-chief investment officer at world's largest bond fund Pimco told Bloomberg Tuesday.

"And ultimately if dividend and capital-gains tax rates go up, then stocks are worth less and that's what you’re seeing."

In contrast with stocks, Gold Prices rallied yesterday after an initial drop at the start of US trading, holding onto most of their gains for the week so far.

"Gold is displaying relative strength and living up to its reputation as a store of value and a safe haven," says this morning's commodities note from Commerzbank.

"Gold ETFs tracked by Bloomberg saw their gold holdings surge by more than 4 tonnes to a new record high of 2592 tonnes."

The European Central Bank left its key interest rate on hold at a record low 0.75 % Thursday.

In a speech in Germany on Wednesday, ECB president Mario Draghi argued that Eurozone inflation "is well contained" and that the ECB expects it to fall below 2% next year.

In yesterday's speech Draghi also denied that a banking union would necessarily lead to cross-border deposit guarantees.

"Organizing and funding deposit guarantee schemes can remain a national responsibility," said Draghi, "with comparable effectiveness."

The Greek government narrowly won a vote in favor of fresh austerity measures last night. The vote was passed 153 to 128 out of a total of 300, while the two biggest coalition parties expelled seven members between them for failing to support the measures.

Spain's government meantime is considering selling 109-year-old palace Castellana in the heart of Madrid in order to raise cash, newswire Bloomberg reports, citing an unnamed source.

Euro Gold Prices traded just below €43,400 per kilo (€1350 per ounce) this morning, within 2.7% of last month's all-time high. Dollar Gold Prices by contrast are around 10% off last year's record.

Here in London, the Bank of England today voted to leave interest rates at a record low 0.5% for the 45th month in a row. The Bank's Monetary Policy Committee decided not to extend the £375 quantitative easing program, which ends this month.

"QE still has a benefit and those benefits will stay there," reckons Alan Clarke, London-based economist at Scotia Capital.

"They're not unwinding any purchases...they won't close the door on it, they'll leave their options open."

"The UK outlook and data are rather mixed," adds ABN Amro economist Joost Beaumont.

"Activity is worsening, and Eurozone problems are still lingering."

Employees at Goldman Sachs were the biggest contributors to Mitt Romney's election campaign, according to figures published by website Open Secrets. The top five political action committees (PACs) that contributed to the Republican were all investment banks. Barack Obama's biggest contributor was the PAC at the University of California.

China meantime will not turn its back on one party rule , outgoing president Hu Jintao told the 18th Communist Party Congress on Thursday. The Congress will see seven new members of the Politburo Standing Committee named, including replacements for Hu and Chinese premier Wen Jiabao.

Total credit growth in China has been 16%, according to figures published by Standard Chartered, while the economy, measured by nominal GDP growth, has only grown by 10%.

"Growth needs to be achieved through real structural reforms that lift productivity rather than by adding leverage," says a note from the bank.

"Otherwise, China will have a date with a financial crisis."

Buying Gold? Visit BullionVault for the safest gold at the lowest price...

  • Reddit logo
  • Facebook logo
  • Twitter logo
  • Google logo
  • Yahoo logo
  • LinkedIn logo
  • Digg logo
  • StumbleUpon logo
  • Technorati logo

The London Gold Market Report is the daily market review from BullionVault, the world's largest physical gold and silver market for private investors. A full member of professional trade body the London Bullion Market Association, BullionVault publishes the LGMR every day that the market is open, bringing you insider comment and analysis from the very center of the world's $240 billion-a-day physical gold trade, and putting the latest gold price action into its wider financial and economic context

See full archive of the London Gold Market Report.

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

 

 

 

ET Now
3 March 2021

Gold drop

Gold's big drop

 

 

 

  •  Email us

Market Fundamentals

  • Central-Bank Gold Buying 'Moderate' But 'Highly Symbolic' in 2021
  • Green Energy: Platinum Key to New 'Hydrogen Catapult'
  • 2021 Gold Price to Rise 11.5%: LBMA Forecast
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.