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 Prices Re-Test $1200 But GLD Firm as 'Europe's Mess' Boosts 'Over-Priced' Dollar

Wednesday, November 14, 2018 7:43

% 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 back below $1200 for the second session running in London on Wednesday, retreating $2 towards fresh 5-week lows as the Dollar rose,

Asian stock markets fell again but Europe steadied for a second day running as the UK government met to debate Prime Minister Theresa May’s 500-page Brexit deal with Brussels on leaving the European Union.

The governments of Austria and the Netherlands meantime asked Brussels to begin EU procedures against fellow member Italy over its planned 2019 budget deficit.

That news saw Italy’s borrowing costs blow out to a spread of 330 basis-points over comparable German Bund yields, back near last month’s 5-year highs.

Euro gold prices touched new 3-week lows at €1063 per ounce while the EuroStoxx 600 equity index edged 0.1% higher.

“Messy European politics, along with a [US] Fed which is set to remain on its tightening trajectory, have kept the Dollar index above 97,” says a note from Canadian brokerage TD Securities, “which continues to add to downside pressure on gold, as we expected.

“CTAs [Commodity Trading Advisers] have now pared back much of their record-setting shorts, [but] we suspect that a break below $1190 would prompt the [algorithmic traders] to once again increase their short positioning as downside momentum firms.”

“We think the Dollar’s too high, it has to back off,” counters John LaForge, head of real-asset strategy at US bank Wells Fargo’s Investment Institute.

“[Moreover] when stockmarket corrections are in the 10-15% level…which is where we are now…investors go out and look for some sort of insurance, and they typically will buy gold, even on a bounce in stocks.”

Tuesday’s stabilization in US equities saw giant gold-backed ETF the SPDR Gold Trust (NYSEArca: GLD) – a major vehicle for US money managers to track the gold price – shrink just 0.1% in size.

Since late-October’s 3-month high in gold prices, the GLD has expanded by 1.8% in size, snapping its more typical pattern of growing or shrinking in size in line with the metal’s price direction.

The US stock market has meantime slipped 0.7%.

With the S&P 500 index of listed US corporations rising 7.2% between July and September to reach its highest ever quarterly finish, the GLD’s No.1 holder Fidelity Investments grew its position in the gold-backed ETF by 3.2%, regulator filings show.

No.2 holder First Eagle – an independent investment firm running some $111bn for clients – expanded its GLD position by 16.8%, while Bridgewater Associates – the No.7 holder run by Ray Dalio with around $160bn of assets under management – kept its holdings in the gold ETF unchanged.

First Eagle’s GLD holdings ended Tuesday worth some $783m, and Bridgewater’s $444m.

“Gold is that one defensive area that when things get choppy [investors] do go to,” LaForge at Wells Fargo told CNBC overnight.

“When stocks find a bottom here, I think we will see people buy insurance, they’ll buy gold.”

Gold prices in Shanghai on Wednesday meantime held a $6 premium per ounce to London quotes, offering an incentive for new bullion shipments into China – the No.1 gold miner, importer and consumer nation – some 25% below its 3-year average.

The UK gold price in Pounds per ounce bounced 0.8% from yesterday’s 5-week low of £922 as UK leader May today told Parliament she was “significantly closer” to reaching a Brexit deal with Brussels some 2.5 years after the narrow ‘Leave’ victory in 2016′s referendum on quitting the European Union.

Rumors on Wednesday said at least 2 members of May’s team refuse the deal and will resign, and other so-called Brexiteer members of her Conservative Party have also said they will reject it.

So will the opposition Labour Party, also despite not yet being allowed to read the proposal.

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-111420184

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:	1,605,477,742
Stories:	8,137,240