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 Firm Amid 'Risk Off' Turmoil as China Targets Yuan, Crude Oil Falls on Iran News

Monday, January 18, 2016 7:05

% 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 started the trading week edging above $1090 per ounce on Monday morning in London, while Asian stocks outside China slipped to their lowest level since 2011 and Brent crude fell to new 12-year lows beneath $28 a barrel as Iran prepared to export more oil following the end of Western sanctions over its nuclear program.

European equities traded higher, however, with Britain’s FTSE 100 up by 0.3% and Germany’s Dax gaining 0.6% from last week’s sharp losses.

China’s central bank took another step to fight downward pressure on its Yuan, announcing it is raising the reserve ratio for offshore banks offering clearing services for the currency.

China’s official GDP estimate for the last 3 months of 2015 is due out Tuesday.

“The way [these] steep equity price falls…is playing out is supporting gold and is more supportive of bullion than previous bouts of risk-off action,” wrote global bank and London bullion market-maker HSBC in a note on Friday.

The gold price in US Dollars today extended its rise for 2016 so far to 2.8%. But profit-taking by investors – plus selling by mining producers – around $1,095 per ounce could keep a lid on further gains, said refining and finance group MKS’s Asian trading desk on Monday morning.

“With New York on holiday [Monday for Martin Luther King Day] we are unlikely to see the market move through this level.”

Silver prices also held firm on Monday, rising to $13.95 per ounce.

Platinum, in contrast, touched fresh 7-year lows at $817 per ounce, again widening its discount to the gold price to new all-time records.

Looking at the Comex derivatives market, latest positioning data from US regulator the CFTC, taken last Tuesday, show the ‘Managed Money’ category of traders turning bullish as a group overall on gold futures and options for the first time in 9 weeks.

Small speculators, in contrast, continued to hold more bearish than bullish bets as a group, extending the ‘Non-Reportable’ category’s net negative position to 20 of the last 26 weeks.

Brent oil meantime fell as low as $27.67 a barrel on Monday, its lowest since 2003, “due to the Western sanctions on Iran being lifted,” according to Singapore analyst Daniel Ang at Phillip Futures.

The decision to lift the financial and economic sanctions imposed in 2012 against Iran, formerly the Opec oil cartel’s second-biggest producer, came on Sunday after the international nuclear watchdog, the IAEA, said Iran had complied with a deal that should prevent its development of nuclear weapons.

Around half a million barrels per day of extra crude oil could now reach world markets, according to analysts.

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-011820161

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:	1,598,773,955
Stories:	8,137,069