Read the Beforeitsnews.com story here. Advertise at Before It's News here.
Profile image
By BullionVault.com (Reporter)
Contributor profile | More stories
Story Views
Now:
Last hour:
Last 24 hours:
Total:

'Politics Driving' Gold Spike But 'Glass Half Full' Stock Rebound Sinks Price $15, GLD Shrinks

% 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 slipped from an overnight spike to fresh 5-week highs against the falling US Dollar on Tuesday, dropping 1.1% as world stock markets jumped, extending yesterday’s strong rebound on Wall Street.
 
After suffering its worst week since gold prices peaked in 2011, the US stock market yesterday recorded its strongest 1-day gain since late 2015, with the Dow Jones index showing its third-ever largest points gain.
 
Tuesday’s jump in equity prices added 2.7% to Japanese shares and 1.9% to Germany’s stock market, cutting their losses from this time last month to around 4%.
 
London’s FTSE100 of primarily global stocks rose almost 2.0% for the day even as the Bank of England – widely expected to hike UK interest rates at its next meeting – warned that “a loosening of credit conditions” in mortgage lending to higher-risk borrowers may force it to take “targeted policy action“. 
 
“Investors are still viewing this as a glass half-full market and a constructive economy,” says Seattle asset group US Bank Wealth Management’s Rob Haworth, “so it’s not surprising to see them buy on value here, buy on dips to try to rebuild their positions.”
 
Gold prices dropped $15 by lunchtime in London having touched $1356 per ounce overnight in strong Asian trade.
 
Monday afternoon’s price of $1352.40 had marked gold’s highest benchmarking since late-January’s 17-month highs, some 3.0% higher from one week before.
 
But investment through giant trust fund proxy the SPDR Gold Trust (NYSESArca:GLD) shrank however, needing 3 fewer tonnes of bullion to back the value of its shares in issue.
 
The GLD’s holding last week reached a 5-month high of 850 tonnes as gold prices fell towards their lowest levels of 2018 to date.
 
 
“The latest political tensions [have been] pushing the prices of precious metals,” reckons a note from Belgian refining group Umicore‘s trading desk, pointing to the United States’ expulsion of 60 Russian diplomats over the Skripal nerve agent poisoning in Britain.
 
The Russian foreign ministry today reproached the US and other nations for not delaying their action amid news of 64 deaths in a fire at a shopping mall in the Siberian city of Kemerovo.
 
Press reports on Tuesday meantime speculated that North Korea dictator Kim Jong-un visited Beijing at the weekend as part of denuclearization talks ahead of potentially meeting US President Donald Trump.
 
The Dollar fell sharpest against the Chinese Yuan on Tuesday, hitting new 2.5-year lows at its weakest since Beijing devalued its currency in August 2015.
 
That failed to stop the Shanghai gold premium – the incentive for new imports into China, and so a measure of supply vs. demand in the No.1 consumer nation – recovering towards their typical level at $8.35 per ounce.
 
Major government bond prices meantime rose again on Tuesday, pushing longer-term interest rates further below their recent multi-year high.
 
Most industrial commodities also rose, but silver and platinum prices followed gold lower after spiking to 3-week and 2-day highs respectively, also trading back around last week’s closing levels of $16.58 and $949 per ounce.

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.

(c) BullionVault 2010

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-032720183



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).

Report abuse

    Comments

    Your Comments
    Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

    MOST RECENT
    Load more ...

    SignUp

    Login

    Newsletter

    Email this story
    Email this story

    If you really want to ban this commenter, please write down the reason:

    If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.