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 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.

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