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:

Black Friday Sees Gold Price Hit New 6-Year Discount as China's Brokers Lead 5.5% Slump

Friday, November 27, 2015 7:27

% 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 to new 6-year lows against the Dollar in London trade on ‘Black Friday’, dropping 1.1% inside 20 minutes as Western equities rallied following the sharpest drop in China’s stock market since this summer’s crash.

With China’s financial regulator now investigating the country’s top 3 brokerages, the SSE Composite Index lost 5.5% for the day, after Haitong Securities joined Citic and Guosen in saying it is under formal investigation for breaching unspecified rules.

New data today showed industrial profits in China falling almost 5% last month from October 2014 – the fifth decline in a row as “surplus inventory [remains] the ghost haunting profits,” according to a note from economists at Minsheng Securities.

Mining giant Anglo American (LON:AAL) then fell to new record lows in London, down 6.7% at one point, as base metal prices fell further with crude oil.

Falling through last week’s low at $1065 to hit $1053 per ounce, Dollar gold prices have now lost more than 45% from the all-time record of September 2011, hitting the lowest level since January 2010.

Euro gold prices also fell over 1%, dropping through €1000 per ounce to erase the last of 2015′s strong earlier gains.

Silver also fell but stayed firmer again, holding 10 cents per ounce above Monday’s new 6-year lows and trading above $14.00.

Investors in precious-metals backed trust funds last week pulled out money at the fastest pace in 4 months, analysis from Bank of America Merrill Lynch says.

Out of 10 signs of capitulation investors might look for in the gold market, says the latest Atlas Pulse report from ex-HSBC wealth manager Charlie Morris, only the positioning of speculative traders in Comex futures and options currently looks “bullish”.

“[The] relationship between gold and commodities is the most bearish of all ten,” he goes on. Because with the broad commodity complex implying “fair value” in gold at $675 per ounce, this ratio “won’t be satisfied until gold touches that 2008 low.”

“We [were] keeping an eye on the US Dollar as a possible catalyst,” said a technical gold price analysis Wednesday from bullion bank Scotia Mocatta’s New York team, written before yesterday’s Thanksgiving holiday.

A rise in the Dollar “would put downside pressure on gold, with a break of $1066 yielding initial $1045, which is the 2010 low.”

Looking at the gold price’s 2015 downtrend, “[a] move towards lower [channel] limit at $1045 and even $1030 – the highs made in 2008 – can’t be ruled out,” said a techncial analysis last week from French investment bank and London bullion market maker Societe Generale.

In contrast to Friday’s China data, UK economic growth during Q3 was confirmed at 2.3% annualized by the Office for National Statistics’ new GDP estimate.

Growth in business investment was more than doubled from the ONS’ previous figure, up to 6.6% per year – the best in 2015.

But the UK’s trade deficit with the rest of the world widened to a series record of 1.5% of GDP – the highest number since at least 1997.

Gold priced in Sterling today flirted with last week’s 3-month low at £700 per ounce.

Having previously refused to join the US-inspired ‘Black Friday’ retail discounting, UK supermarket chain Asda today cut the price of unleaded petrol below £1 per litre – a price last seen during the financial and commodities crash of 2009.

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/black-friday-gold-price-112720151

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:	1,599,621,523
Stories:	8,139,708