Read the Beforeitsnews.com story here. Advertise at Before It's News here.

By BullionVault.com (Reporter)
Contributor profile | More stories

Story Views
Now:
Last hour:
Last 24 hours:
Total:

Gold Price Sinks as Dollar Surges, Burns Hottest Bull Bets Since Lehmans

Tuesday, May 26, 2015 10:46

% of readers think this story is Fact. Add your two cents.

Adrian Ash is head of research at BullionVault, the world-leading gold trading & ownership service online…

GOLD PRICES sank against a rising US Dollar on Tuesday, with UK and US bullion traders returning from a long holiday weekend to see the metal hit $1186 per ounce – more than 1.6% below last Friday’s finish.

European and US stock markets lost over 1% as the single Euro currency fell to its lowest Dollar value since late April after press reports said Greek finance minister Varoufakis was today called “a hindrance” to resolving Athens’ debt bail-out by Eurogroup chief Jean-Claude Juncker.

Greek bond yields jumped to 11.4%, and Spanish yields also jumped following the weekend’s strong poll results for the socialist Podemos Party.

New US data showed home sales, consumer confidence and manufacturing activity all coming in better than analysts forecast.

Commodity prices sank, with crude oil losing 3% and more against the Dollar.

“The next big data release from the US or the next confirmation of an interest rate hike, whenever that will come, I think that’s when we are going to see the final washout in gold,” Reuters quotes Mitsubishi Corp’s precious metals strategist Jonathan Butler in London.

“Last Friday’s CPI [inflation] release proved a bit of a shocker for the market,” says currency strategist Steven Barrow at ICBC Standard Bank. Because “with the Fed readying for tighter policy, [even] tenths of a percent have a real significance.”

“There is so much importance given to the first move,” said Fed vice-chair Stanley Fischer in a speech today in Israel. “But I think it’s misleading,” he added, with the bigger issue being the 3.25% to 4% level likely to be reached by short-term US rates over the next 3-4 years according to Fed projections.

“Unlike the Fed,” writes INTL FCStone analyst Edward Meir, “other central banks are in full ‘easing mode’ and are even contemplating expanding their stimulus, as is the case for China.

“All this should be, in theory, bullish for gold, but the precious metal has to contend with the offsetting bearish variable of a stronger Dollar.”

Latest data from US regulator the CFTC showed speculative traders in gold futures and options growing their net bullish position in the week-to-last-Tuesday by some 57% – the fastest week-over-week jump since gold prices recovered from a big sell-off, and turned sharply higher, in November 2008 following the Lehman Brothers’ collapse.

Silver derivatives also saw speculators bet heavily on rising prices, growing their bullish position as a group – net of bearish contracts – to the greatest level since late January, when prices rose above last week’s peak at $17.77 per ounce.

Today’s silver drop cut the spot price well over 5% from there. Leveraged losses for futures and options traders will have been multiples greater.

Gold prices today traded almost 4% below the 3-month highs reached just before the latest CFTC data were taken.

Formerly City correspondent for The Daily Reckoning in London and head of editorial at the UK’s leading financial advisory for private investors, Adrian Ash is the editor of Gold News and head of research at BullionVault – winner of the Queen’s Award for Enterprise Innovation, 2009 and now backed by the mining-sector’s World Gold Council research body – where you can buy gold today vaulted in Zurich on $3 spreads and 0.8% dealing fees.

Please Note: This article is 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.

Source: https://www.bullionvault.com/gold-news/gold-prices-052620152

Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world.

Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.

"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.

Please Help Support BeforeitsNews by trying our Natural Health Products below!

Order by Phone at 888-809-8385 or online at https://mitocopper.com M - F 9am to 5pm EST

Order by Phone at 866-388-7003 or online at https://www.herbanomic.com M - F 9am to 5pm EST

Order by Phone at 866-388-7003 or online at https://www.herbanomics.com M - F 9am to 5pm EST

Humic & Fulvic Trace Minerals Complex - Nature's most important supplement! Vivid Dreams again!

HNEX HydroNano EXtracellular Water - Improve immune system health and reduce inflammation.

Ultimate Clinical Potency Curcumin - Natural pain relief, reduce inflammation and so much more.

MitoCopper - Bioavailable Copper destroys pathogens and gives you more energy. (See Blood Video)

Oxy Powder - Natural Colon Cleanser! Cleans out toxic buildup with oxygen!

Nascent Iodine - Promotes detoxification, mental focus and thyroid health.

Smart Meter Cover - Reduces Smart Meter radiation by 96%! (See Video).

Comments

Online:
Visits:	1,603,524,657
Stories:	8,150,435