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 'Uneventful' as US Fed Rate-Hike Looms, China Punishes Brokers & Investors Amid New Stockmarket Drop

Monday, September 14, 2015 7:26

% 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 traded in a 0.5% range Monday morning, treading water around the lowest weekly close in five ahead of Thursday’s long-awaited US Fed decision on Dollar interest rates – now held at zero for almost 7 years.

Mixed data from China meantime saw Shanghai’s stockmarket drop 2.5% as Beijing’s long-awaited plan for reforming its huge state-owned enterprises – urging a focus on “socialist values” over “profit” – today fell short of privatization, “disappointing” investors by defending “entrenched interests” according to some analysts after the recent equity-market turmoil.

Leading securities brokerages Founder, GF, Haitong and Huatai were fined the equivalent of $28 million by the China Securities Regulatory Commission on Friday, and had $10m of profits confiscated for not verifying client I.D. properly, with individual executives also fined and warned.

Two private investors were also punished for “manipulating” stock prices by using fake buy orders to boost prices.

“I’m not looking for any big effect,” says Nobel economist and Yale professor Robert Shiller in an interview with the Financial Times of the Fed rate hike, saying that “it has been talked about for so long, everyone knows that it’s coming.

“It’s just not much of a big deal,” says Shiller, also warning that 6 years of gains now mean the US stock market is “a bit of a bubble” similar to the Tech Stock top of 2000.

For gold prices, says a trading note from Swiss refinery and finance group MKS, “This week’s FOMC meeting is likely to keep price action fairly limited.”

“Physical gold demand in the emerging markets is sluggish,” adds bullion market maker HSBC in a note.

“With mixed signals from inflation, the labor market and financial conditions,” says fellow London bullion bank Barclays, “there are heightened uncertainties about the Fed decision.

“We expect lower trading activities and a sideways market before the meeting.”

“My personal opinion,” says David Govett at brokers Marex Spectron in London, “is that the Fed will not raise rates and [so] Thursday night should see a rally in precious prices.

“However…if the Fed doesn’t raise this month, they will emphasise that the raise is not far off. [So] the rally will probably be short lived.”

“Uneventful trading ranges” are notable across several other markets, says US brokerage INTL FCStone, “largely on account of trading volume dwindling ahead of the critical Fed meeting later this week.

“However, intraday movements in both gold and silver have been substantial.”

Chinese gold prices edged down in Shanghai trade Monday, but closed the day at a greater premium to London quotes, offering importers a gross margin of $3.75 per ounce.

Australian shares meantime rose Monday, and the Aussie Dollar spiked, as prime minister Tony Abbott was replaced by ex-Cabinet colleague Malcolm Turnbull – now the country’s 6th leader in 8 years – following a vote by Liberal Party politicians.

London’s stock market ticked lower with Eurozone shares, but the Pound initially rose – nearing last week’s 1-month highs against the US Dollar – despite Jeremy Corbyn, dubbed a “radical left-winger” by some newspapers, winning the opposition socialist Labour Party’s leadership contest.

That held gold priced in Sterling around £715 per ounce, the multi-year low hit both by the crash of 2013 and again on gold’s volatile spike downwards last November.

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-price-091420151

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:	1,603,027,741
Stories:	8,148,725