Gold News

Slow gold market lets forex traders set price

Gold dipped to its lowest AM fix in three weeks today. Traders say the market has clocked off early for Christmas.

"There are clear signs that things are slowing down for Christmas," said one economist to Reuters, "even though it's still a few days away. Gold remains tied to the Dollar and the Dollar has broadly stabilised compared with the big moves a couple of weeks ago."

But moves in the currency markets do mean there's action in gold for non-US investors. Gold has risen against the Euro so far today. It's also regained yesterday's levels versus Sterling despite fresh data saying that UK interest rates are likely to rise.

UK retail sales rose 3.2% last month from November '05. The Bank of England's latest "Inflation Attitudes" survey reports that 72% of consumers expect base rates to rise in the next year, compared with 65% in August. The survey also puts consumer estimates of inflation above the official rate. That means wage-push inflation looks set to rise further.

Are the central bank policy wonks listening to what consumers are saying? There's nothing like a good "survey" to fudge the real data – find out more here...

Adrian Ash

Adrian Ash, BullionVault Gold News

Adrian Ash is director of research at BullionVault, the world-leading physical gold, silver and platinum 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 he has now been researching and writing daily analysis of precious metals and the wider financial markets for over 20 years. A frequent guest on BBC radio and television, Adrian is regularly quoted by the Financial Times, MarketWatch and many other respected news outlets, and his views from inside the bullion market have been sought by the Economist magazine, CNBC, Bloomberg, Germany's Handelsblatt and FAZ, plus Italy's Il Sole 24 Ore.

See the full archive of Adrian Ash articles on GoldNews.

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