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.

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

  • 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
    • Live order board
    • Daily Price
    • Regular Investing
    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
  • Live order board
  • Daily Price
  • Regular Investing
  • 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 Ex-US Dollar Break Above $1450 as Italy's 'Brexit' Talk Hits Euro

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 2019 (20)
  • January 2019 (33)
  • December 2018 (28)
  • November 2018 (39)
  • October 2018 (38)
More...

List of authors

Gold "Well Positioned" as Stocks Plunge Again on New Eurozone Risk; Investors Lack "Safe Big-Cap Currencies" Says Credit Suisse

Tuesday, 6/01/2010 13:39

Gold rose sharply against all major currencies early Tuesday, hitting two-week highs against the Dollar above $1224 an ounce as world stock markets slumped almost 2%.

The Euro dropped nearly 2¢, hitting a new four-year low on the currency markets, after the European Central Bank warned that Eurozone banks face €195 billion in bad debts.

The Gold Price in Euros rose within 0.4% of mid-May's all-time record highs, trading back above €32000 per kilo.

"Gold's uptrend still look intact despite being over-bought short-term," reckons one Hong Kong dealer in a note.

"The fear factor is still in the marketplace...which makes Gold Investment a reasonable alternative to equities," says a Swiss commodity analyst, speaking to Bloomberg.

"Gold remains well positioned to benefit from risk aversion," agrees Walter de Wet at South Africa's Standard Bank.

"Speculative length [in Gold Futures] remains at acceptable levels despite gold's rally of the past two weeks. As expected, platinum has seen a very large liquidation of non-commercial long positions."

New data, released after Friday's close, showed speculative traders in US Gold Futures and options reducing their bullish exposure in the week-ending last Tuesday.

The "net long" position of bullish minus bearish contracts held by non-gold-industry players shrank 9% to a four-week low equivalent to 921 tonnes of gold.

As London's precious metals market re-opened after the Whitsun Bank Holiday on Tuesday, platinum and palladium prices fell a further 0.7%, extending May's 10.5% drop.

Crude oil fell hard, down to $72 per barrel as base metals also dropped.

"Safe haven" government bond prices rose, in contrast, pushing yields back down towards last week's multi-month lows.

The British Pound also leapt to near a 3-week high, after the Prudential insurance group's bid for AIG's Asian unit was rebuffed, delaying if not killing the need for a $30 billion Sterling exchange.

Gold priced in Sterling reversed an earlier gain to trade unchanged from last week's record-high monthly finish of £840 an ounce.

"We on [Credit Suisse's] global strategy team remain overweight of gold," says a new report from Andrew Garthwaite's team in London, "and see...that the Gold Price could rise another 10% to 20%."

Supporting the current bull-run in Gold Prices, Credit Suisse's equity strategy team believe, are low real rates of interest; an "80% chance" that quantitative easing or the threat of a sovereign government default will continue; low gold allocations both at Asian central banks and global investment funds; the lack of "bubble behavior" in the Gold Price; sharply higher Gold Mining costs between now and 2015; plus the "shortage of a reserve currency" for investors to hold worldwide.

"There are no safe big-cap currencies," says the Credit Suisse report, recommending investors buy what it calls "cheap" Gold Mining shares such as Newmont.

"German investors have not been put off the slightest by the high Gold Prices," says Wolfgang Wrzesniok-Rossbach at refinery group Heraeus in Hanau.

"Increased [investment] demand was met by limited supply, so much so that despite increased production of bars (and certainly Gold Coins too) in the past two weeks, the waiting period for delivery went up considerably."

Meantime in the government debt market today – where the European Central Bank said yesterday that it's raised its purchases of Eurozone bonds – "By buying up Greek debt, the ECB keeps the prices of the bonds artificially high," notes Germany's Der Spiegel magazine online.

"French banks, in particular, benefit from this policy," the magazine says, because French institutions now hold €80 billion in Greek government bonds. German banks, in contrast, have agreed with the Berlin finance minister not to sell their Greek bonds at all until May 2013.

"Thus, in a roundabout way, the [German] Bundesbank, by spending €7 billion to purchase the Greek securities, has already made a substantial contribution to bailing out banks in neighboring France," says Der Spiegel.

Looking to buy gold today...?

  • Reddit logo
  • Facebook logo
  • Twitter logo
  • Google logo
  • Yahoo logo
  • LinkedIn logo
  • Digg logo
  • StumbleUpon logo
  • Technorati logo
  • del.icio.us 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, or get more from Adrian Ash on Google+

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, RSS links are shown there.

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 February 2019

Gold Investor Index

Gold up, investing up!

 

 

 

CNBC TV-18
3 January 2019

CNBC TV-18

Gold jumps into New Year

 

 

 

Portfolio Adviser
19 October 2018

Vaulted large bar gold. Source: BullionVault

Beyond gold 'chatter'

 

 

 

Money Observer
6 August 2018

Bitcoin ain't gold

No, Bitcoin isn't "new" gold

 

 

 

  •  Email us

Market Fundamentals

  • Gold 'Set to Drive' Silver Price Gains in 2019
  • LBMA Gold Price Forecasts See Tight Range in 2019
  • Gold Mining M&A Now 'Easier' Than New Exploration
More...
  • Cost calculator
  • Cookies
  • Terms & conditions

©BullionVault Ltd 2005-

  • Twitter
  • Facebook
  • Google Plus
  • LinkedIn
  • YouTube