Profile cover photo
Profile photo
BullionVault
560 followers -
BullionVault enables you to buy pure physical gold and silver at the lowest possible price
BullionVault enables you to buy pure physical gold and silver at the lowest possible price

560 followers
About
Posts

Post has attachment
Tulips, Railways and Why We Don't Take Bitcoin: Not stocks, bonds, seashells or Yap stones either...   ONE KEY requirement of money, writes Adrian Ash at BullionVault, is that it doesn't drop 27% of its purchasing power inside 4 days...   ...only to regain all that drop again in the following 72 hours.   This kind of hyper-volatility signalled the death of the German Reichsmark amid the country's economic collapse following World War I.    It's also what has happened to Bitcoin since its latest all-time high of Wednesday last week.    "Bitcoin: Money of the future?" asks this neat little video which just won a competition run by the European Central Bank.    "Nope," comes the video's answer...and pretty much solely by way of Bitcoin's huge volatility to date.     But while crypto currencies more broadly are failing to find much monetary use outside the trade in illicit stuff online (for which even politicians can see they are perfect), they will no doubt play some role in our legal monetary future. * Coins began replacing unwritten social debts in the 7th Century BC... * Paper notes acted as a receipt for gold coin from the Middle Ages... * Today's contactless cards now make both coins and paper redundant (as well as the cashier at the till) as far as the vast majority of shoppers are concerned.  Whatever the social, economic and political risks of blindly choosing to abolish cash like this, the fact is that money is a tool which humanity has constantly changed and re-invented.   Indeed, the blockchain technology underpinning today's crypto-currencies...with separate systems all processing and recording each transaction rather than a licensed bank getting in the middle with its fees...is showing strong appeal to central banks like the ECB itself.    There's no idea so hot, in other words, that central bankers can't try to make it dull. But meanwhile, as a handful of customers are asking again, why doesn't BullionVault accept Bitcoin...so that you can trade crypto for gold, silver or platinum on the internet's No.1 precious metals exchange?    Well, BullionVault seeks to help people get out of currency...and into gold or silver or platinum... as a secure and cost-effective store of value.    Liquidity on the way out is paramount, back into cash that's ready for spending or converting into other assets elsewhere as you choose. Building new payment mechanisms, or enabling customers to store value in currencies different from the 4 funding and trading currencies we offer (or indeed in other assets) is not what we do.    If you want to sell your gold to buy stockmarket shares or a new house, BullionVault will enable the first leg of that trade at the very lowest costs. For the second part, you will of course want to find the best value process for yourself.    That's why, for instance, we don't offer Swiss Francs as a funding or trading currency, despite frequent requests over the years.    We don't accept equities, bonds, seashells, cigarettes or 5-ton lumps of stone either.   Time was that a customer would say "Gold is a safe haven, and the Swiss Franc is too. Why can't I trade the one for the other on BullionVault?"    The Swiss central bank has since worked to destroy the Franc's reputation for stability, of course. Like every other monetary authority, it wants cheap money to juice the economy...no matter the cost to wage-earners and savers and the country's international standing.   But replace "Swiss Franc" with "Bitcoin" in that question...and replace "safe haven" with "beyond government control"...and the essence of the occasional customer question is the same. So too is BullionVault's reply.   Dollars, Euros, Sterling and Yen are the currencies quoted and dealt by the professional wholesale bullion market. It's the deep liquidity and low costs of that market...free from costly FX transactions...to which BullionVault seeks to give its users access.    Equally important, private households in the UK, Eurozone and Dollar-zone countries between them represent by far the largest markets currently available to us. (Most other Asian households remain precluded by exchange controls.) We couldn't hope to achieve the same depth of bids/offers from customers in other, smaller currencies...and open competitiveness and orderly markets are a critical part of our low-cost proposition to gold, silver and platinum investors like you.    Indeed, outside the 3 major currencies we've accepted since launching in 2005, only the Japanese Yen has been added...and only because it has the depth and liquidity we need to ensure low friction and low costs for ourselves and our users.    So, while we haven't missed the interest, excitement and innovation building around Bitcoin since its invention in 2009, we still don't believe it currently offers BullionVault any commercial opportunity.    Together, our expertise and narrow focus are what enable our world-beating liquidity and low costs. Add what clients repeatedly tell us is great customer service, and we believe it is BullionVault's small ambition to be the best in physical precious metals which makes us the largest provider to private investors anywhere on the internet.    All this said, there is most definitely something potentially world-changing in blockchain and perhaps crypto-currency technology. This latest bubble (and bubble it is) also maps the boom-bust seen at the birth of other revolutionary technologies and tools in history.    Think of listed shares and government bond markets (the French Mississippi and then South Sea Bubble 1720)...or railways (the British bubble of the 1840s)...investment trusts (Wall Street's bubble and then Great Crash 1929)...or of course the internet (the DotCom Bubble and crash of 1996-2003).    So which is it for Bitcoin? Tulips or railways?    Again, we are not experts in this new realm. (For someone who is, check out Beyond Bitcoin by David Birch.) But useless tulips and very useful railways both destroyed herd investors who bought too late into the initial hype...and didn't get out before it burst.   As a profitable and sustainable business meantime, committed to serving customers the very best we can, we remain highly cautious. Our experience and success to date both suggest that our customers really wouldn't want it any other way.    From launch in 2005 (and that was after 3 years' development) we only added silver in 2010, with platinum following only this year. Our sister business WhiskyInvestDirect...whilst offering a very different store of value to clients...is a low-cost applicaton of our existing technology and business model.    Secure storage of physical goods...fully insured in professional facilities...all ready for resale at very low cost, and for full market value, the moment you choose.   This explains our reticence. Good luck if you buy Bitcoin by selling some of your precious metal. BullionVault makes the first part simpler, safer and cheaper than anywhere else. And for transferring funds out, back to your direct control within your own full-service bank account, the world's existing and dominant cash-clearing systems work very well...at relatively low cost...with reversible payments enabling deep trust and confidence billions of times a day.    Crypto-currencies are, at present, a very long way from offering any competition to that.    Well, not outside all those clickbait headlines at least.
BullionVault
BullionVault
bullionvault.com
Add a comment...

Post has attachment
Gold Prices Hit 4-Week Dollar High as Stocks Fall from 'Irrational Exuberance': GOLD PRICES jumped to 4-week highs against a weakening US Dollar in London trade Wednesday lunchtime, reaching $1288 per ounce as world stock markets followed Wall Street lower for the 5th session running.   New data today showed US inflation holding at the Federal Reserve's 2.0% annual target in October, while retail sales rose 4.6% from the same month last year.   Silver and platinum both reached 1-week highs as the Dollar fell to worse than $1.1850 against the single Eurozone currency, its weakest level in a month.   Tuesday in contrast had seen another heavy selling order in Comex gold futures, notes Bloomberg, with "erratic volume" in the derivatives market "going from an oddity to a more regular feature of trading."   "Rumours on the market [say] the gold selling may have to do with Venezuela’s national bankruptcy," reports today's daily commodities note from German financial services group Commerzbank, after the crisis-hit Latin American state allowed a swap deal to lapse last month with former bullion bank Deutsche Bank.   "Possibly this gold has now been sold after the loans were not serviced," says Commerzbank.   A record-high balance of investment managers have meantime been taking "more risk than usual" according to the latest survey from Bank of America Merrill Lynch.   Cash holdings amongst managers running $610 billion of assets fell this month to a 4-year low at 4.4%, the survey found.   Yet at the same time, a record 48% of the survey's respondents said they believe equity markets are currently "over valued".   That disconnect between fund managers' views and behavior points to "irrational exuberance" says BAML's report, using a phrase coined by ex-Federal Reserve chairman Alan Greenspan as the Tech Stock Bubble accelerated in the late 1990s.   A separate survey from data and technical analysis service Investors Intelligence put the balance of bullish over bearish investors at the highest level since just before the 1987 'Black Monday' crash at the start of this month.   "The recent weakness in US high-yield bond prices [has been] diverging notably from stock prices [setting] new highs," says the latest Global Strategy Weekly from French investment bank Societe Generale strategist Albert Edwards.   Within the stockmarket itself, Edwards adds, "there has been a clear divergence in [2017] performance between companies with highly leveraged (bad) balance sheets and those [without]," pointing to a chart from his colleague Andrew Lapthorne.   "Is this a straw in the wind that a bear market is arriving far sooner than most investors had anticipated?"     Amid the military coup against ruler Robert Mugabe's wife becoming his successor in southern African state Zimbabwe meantime, major platinum producer Zimplats said its mines -- "all located some distance" from the capital Harare -- "have continued to operate normally this morning."   Accounting for 7.3% of global platinum mine supply over the last 5 years, Zimbabwe holds the world's second-largest unmined reserves of the metal behind No.1 producer South Africa.   Data from specialist consultancy SFA (Oxford) forecasts a 9% decline in the country's 2017 output from last year's record.   Rising 3.2% so far in 2017, the platinum price has lagged both silver – up 7.6% in US Dollar terms – and gold, now more than 11.5% above its New Year start.
BullionVault
BullionVault
bullionvault.com
Add a comment...

Post has attachment
Comex Gold Sees 'Another Large Sell' as Bullish Silver Betting Grows to 7-Week High: COMEX GOLD contracts recovered a $5 drop against a weakening US Dollar in London lunchtime trade Tuesday, rising back to last week's finish at $1275 after what analysts called another "large sell" order on the futures market.   Commodities retreated and bond prices edged higher as world stock markets fell again.   Germany's Dax dropped for the fourth session running after the 19-nation Eurozone released a raft of stronger economic data, led by 2.5% annual GDP growth across the region for the third quarter of the year.   "Speculative financial investors stopped withdrawing from gold and built up net long positions again in the week to 7 November," says German financial group Commerzbank in a commodities note today, looking at the latest Comex gold derivatives data from US regulator the CFTC.   "They have also been betting more heavily on rising silver prices again of late."     The net long position in Comex gold derivatives rose 4% in the week-ending last Tuesday, according to the CFTC data, taking it to the notional equivalent of 540 tonnes, some 43% greater than its historic average.   Bullish postioning in silver in contrast, net of money managers' bearish bets, saw a 13% jump, taking it to a 7-week high notionally equivalent to 10,180 tonnes, fully 165% greater than the average size since current data began in 2006.   In Dollar terms, that made the "net spec long" in silver worth over 25% of the equivalent net betting on gold, its largest level since April and one-third larger than the historic average.   In the physical market, "China were light buyers [of gold Monday]," says today's trading note from MKS Pamp, the Swiss refinery group, reporting the Shanghai premium over quotes for London settlement at $8 per ounce, in line with typical levels.   "London came in on the bid...[and New York] tried to push the yellow metal through $1280 on several occasions but heavy offers on Comex capped the market."   Silver prices meantime "managed to recoup the 17 handle," says MKS, "finding near term support at the 100-day Moving Average" according to a technical analysis from bullion clearers and market-maker Scotia Mocatta's New York team.   "[But] the metal remains locked between $17.18, the 200-day MA," says Scotia, "and $16.77, the 23.6% Fibo retracement level of the Sep-Oct decline."   On the FX market Tuesday, Tthe Dollar fell to 3-week lows against the single currency at worse than $1.17 per Euro.   That helped drive the gold price for Euro investors down below EUR1085 per ounce, its cheapest level since 26 October.   The UK gold price in Pounds per ounce meantime held tight around £972 as Sterling recovered a half-cent drop on the FX markets following news that consumer-price inflation held last month at a 5-year high of 3.0% per annum.   The Bank of England this month raised its key interest rate to 0.5% after it holding it at 0.25% for almost nine years.  
BullionVault
BullionVault
bullionvault.com
Add a comment...

Post has attachment
Gold Prices Bounce from Comex Sell-Off as Fed Looks to 3x Rate Hikes in 2018: GOLD PRICES traded in a narrow $5 range above last week's close on Monday morning in London as expectations held firm for a US Fed rate hike next month and the British Pound dropped amid fresh doubts over Prime Minister Theresa May's leadership, writes Steffen Grosshauser at BullionVault.   Gold prices climbed to $1279 per ounce after posting its biggest daily decline in three weeks in Friday's session, falling below the 100-day moving average as the US Comex futures and options exchange saw heavy selling concentrated in 10 minutes.   Monday's bounce in non-yielding bullion prices were limited, however, against a strengthening US Dollar and a further rise in the rate of return offered by US Treasury bonds.   Market expectations now see a 96.7% certainty of a Federal Reserve rate rise to a ceiling of 1.50% at the meeting 1 month from today, up from 82.7% this time in October.     "A higher yield tends to increase the cost to carry gold, and we had a little uptick in the yield curve slope," says Bart Melek, head of commodity research at Toronto Dominion Bank.   Philadelphia Fed President Patrick Harker meantime said today he expects the US central bank to raise rates at their meeting next month, with a further 3 increases likely next year unless inflation in the cost of living retreats.    US lawmakers said over the weekend that President Trump's tax-cut proposals face heavy debate and challenges between now and the New Year.   "We don't see much movement in gold prices in the next one or two months," reckons Richard Xu, a fund manager at China's biggest gold exchange-traded fund HuaAn Gold.   "In lieu of major developments, it is difficult to see gold finding the support necessary for a move back toward $1300 over the near-term," agrees Swiss refiner MKS Pamp's trader Sam Laughlin.   Gold for UK investors rallied by £10 on Monday, back towards last Wednesday's 3-week highs at £980 per ounce, as Sterling was battered by nearly 1% on the currency market after The Sunday Times reported that 40 members of Parliament from Prime Minister Theresa May's Conservative Party have agreed to sign a letter of no-confidence in her ability to push for the Brexit deal she has proposed.   While the Pound's weakness supported Britain's FTSE100 Index, the vast majority of Asian and European indices dropped on Monday, with the pan-European STOXX 600 benchmark led down by heavy losses in energy provider EDF.    Brent crude oil stayed near a 2-year high buffeted between further tensions in the Middle East and reports of rising US production.    Silver showed low trading volumes on Monday but stayed above Friday's close at $16.88. Trading in platinum and palladium also remained subdued throughout the morning with palladium oscillating around the $1000 level through which it slipped last Friday.    Bitcoin, the original crypto-currency, meanwhile slightly recovered after slumping more than 25% in the previous 4 days amid concerns over the cancellation of a software upgrade.
BullionVault
BullionVault
bullionvault.com
Add a comment...

Post has attachment
Gold Prices +1.1% for Week Even as Real US Rates Rise Amid Junk Bond Sell-Off, Saudi Tensions: GOLD PRICES slipped but held 1.1% higher from last Friday's 13-week closing low in Dollar terms today as world equities followed Wall Street further below the stock market's recent all-time highs.   Silver held the same weekly gain at $17.02 per ounce, while platinum prices traded 1.7% higher from last Friday above $936.   Crude oil held near this week's 2-year highs as France's president Emmanuel Macron made an unscheduled visit to Saudi Arabia, which has now – amid the "purge" of new crown prince Mohammed Bin Salman's rivals – ordered its citizens to leave Lebanon, suggesting an attack against Iran-backed Hezbollah may be imminent.   The Euro touched 1-week highs above $1.1660 on the FX market, cutting gold's weekly gain for Eurozone investors to 0.9% after it reached the highest price since mid-September on Wednesday at EUR 1110 per ounce.   Betting on next month's Federal Reserve decision on US interest rates meantime sees zero chance of "no change" -- down from a likelihood of 12.2% this time last month -- with the consensus continuing to expect a 0.25 point rise in rates to a ceiling of 1.50% on 13 December.   The likelihood of a shock 0.5 percentage point hike however -- up to a ceiling of 1.75% -- has jumped from zero to 8.5% according to the CME's FedWatch tool.   "Based on the previous relationship between the price of gold and expectations for US interest rates," said a report last week from UK consultancy Capital Economics, "the yellow metal is set for a big fall."   "[But] gold [is currently] ignoring a slight firming in US real 10-year rates," notes John Reade, chief market strategist at the mining-backed World Gold Council.   "Unusual divergence."   Adjusting for market-based inflation expectations, 10-year US Treasury bond yields have shown a strong inverse relationship with Dollar gold prices over the last 15 years, reaching a record strong 5-week average of rolling 5-week correlations at -0.963 this time last month.       With 10-year US Treasury yields rising from 2.34% to 2.37% this week, borrowing costs for lowly-rated US corporate borrowers have risen more sharply still, reports the Financial Times.   The price of so-called "junk bonds" fell yesterday to 7-month lows as tracked by trust-fund ETF investment products.   "Looking like JNK was right. Per usual," said fund manager Jeff Gundlach of $109bn asset managers Doubleline yesterday, answering his own earlier tweet asking how the junk-bond ETF could drop in price 6 days in a row while the S&P500 index of US equities rose 5 times to yet another all-time record high.   "We absolutely do have concerns over Asia junk bonds," Bloomberg today quotes ANZ Bank credit strategist Owen Gallimore in Singapore, also pointing to the sell-off in sub-investment grade US debt.   "We are underweight Asia high yield as valuations look frothy."
BullionVault
BullionVault
bullionvault.com
Add a comment...

Post has attachment
12-Month Demand to Buy Gold Sub-4,000 Tonnes 1st Time Since 2010, Mine Supply 10% Larger: BUY GOLD prices traded at 3-week highs and more against all major currencies outside the Japanese Yen on Thursday, rising despite new data showing the weakest 12-monthly gold demand since early 2010.   Global gold buying demand fell below 4,000 tonnes between October 2016 and September this year, with global gold mining output larger by almost one-tenth.   Western stock markets fell again, as did Western government bonds -- pushing longer-term borrowing costs higher -- while most industrial commodities held flat near their recent multi-year highs.   Trading up to $1287 per ounce, gold priced in Dollars moved 1.4% higher from last Friday's finish, its lowest weekly close in 13.   Platinum prices also rose to fresh 3-week highs against the Dollar just shy of $940, but silver in contrast held 0.8% below Monday's 3-week high of $17.25 per ounce,    July to September "was a tough quarter for gold demand," said Alistair Hewitt, Head of Market Intelligence at the mining-backed World Gold Council today, reporting global demand to buy gold down 9% from the same quarter last year and the lowest quarterly total since Q3 2009.   Prices to buy gold averaged $180 per ounce less that quarter than they did in Q3 this year.   Contrasting with the first year-on-year growth in 11 calendar quarters for China's gold buying, "India was coming to terms with GST [sales tax] and anti-money laundering regulations," Hewitt explained.   "Although we saw ETF [trust-fund investment] inflows... they were significantly lower than last year."   All told, the World Gold Council's data show, global gold buying in the 12 months ending 30 September fell 11% from a year earlier, dropping below 4,000 tonnes for the first time since spring 2010.   Global gold mining output was 9.8% larger according to that same report.     "Political risk from the North Korea threat and other issues have been supportive for gold," says South African investment bank Investec, "but if underlying demand is weak and political risks recede then the metal could face a correction."   Across the Middle East, gold demand in Iran rose again and Turkey's private-investment buying almost tripled on a drop in Lira gold prices, says the World Gold Council's report.   But next year's addition of 5% sales tax in Saudi Arabia and the UAE means demand "is likely to falter" in the region's key hubs, it goes on.   Equity markets across the Arabian Gulf ended Wednesday $7 billion lighter in market capitalization from before last weekend's sudden purge and detention of political and royal rivals to new crown prince Mohammed Bin Salman.   "We want a vibrant trade relationship with China," said US president Donald Trump after two hours of talks with Beijing leader Xi Jinping this morning.   "[But] we also want a fair and reciprocal one."   With Brussels' economists now forecasting that GDP growth in the UK will trail the rest of Europe as it exits the European Union in 2019, the EU's chief negotiator Michel Barnier today gave London 3 weeks to confirm its "divorce settlement" offer or lose the opportunity to start post-Brexit trade talks next month as planned.   A poll of real estate surveyors today said house prices are falling across the UK, not just in London.   Hit by a wave of ministerial scandals, the UK Government meantime said it will extend £2 billion of trade credit to Saudi Aramco -- the world's largest oil business, which is now considering London's stock market against New York, Tokyo and Hong Kong for a 2018 listing.   "A further lurch in descent to mercantilism," said one former senior civil servant.  
BullionVault
BullionVault
bullionvault.com
Add a comment...

Post has attachment
Gold Price +0.9%, Silver Investment 'Weak' as $300m 'Kill' Hits Crypto: GOLD PRICE gains of 0.9% for the week so far held firm in London trade Wednesday as world stock markets flat-lined with bonds and commodities, and news spread that hundreds of millions of dollars held in crypto-currency Ethereum have been potentially lost by a developer "error".   Between $150-300 million-worth of crypto-currency was either frozen or destroyed late Monday – depending on whose analysis you read – after a self-declared "newbie" made what they claimed was an honest mistake to "kill" a library of transaction records.   The crisis was enabled, according to other coders today, by "a simple bug...a logic flaw" in a fix previously deployed by developers using the Ethereum blockchain.   Having lost and recovered 6% of its Dollar price last Thursday, Ethereum dropped and recovered almost 4% of its price overnight today, but continued to hold one-quarter below mid-June's current all-time peak at $400.   Leading crypto-currency Bitcoin meantime rose within $100 of Sunday's fresh all-time record high above $7,500 per unit – a 10-fold gain for 2017 to date.   The number of internet searches for the phrase "buy bitcoin" has now outnumbered "buy gold" searches worldwide in English on 18 of the last 30 days, according to data from Google Trends.   Search volumes for "buy bitcoin" first overtook "buy silver" in February, and have held almost 6 times greater so far in November.   "US silver coin and bar demand this year is set for the lowest total since 2010," says the latest weekly analysis from specialists Metals Focus, calling the sector "exceptionally weak [with] no sign of a turnaround."   Silver prices today held above $17 per ounce, leaving its ratio to gold little changed at 75 per one ounce of the dearer precious metal.     Silver investment demand in "India is also on course for a weaker performance this year," Metals Focus goes on, "albeit not as pronounced."   India's gold bullion imports are likely to total just 175 tonnes during the fourth quarter of 2017 reckons senior analyst Sudheesh Nambiath at Thomson Reuters GFMS, down over 25% from Q4 2016.   Gold's balance of supply and demand "[is] showing that gold prices should fall into 2018," reckons Singapore bank OCBC analyst Barnabas Gan, but "geopolitical events could cloud the fundamentals."   Landing in China to meet President Xi and discuss North Korea's missile tests, "You cannot support, you cannot supply, you cannot accept," said US president Trump overnight, asking "every nation, including China and Russia" to apply the United Nations' resolutions against the Pyongyang regime.   "We encourage the UN and international partners to take necessary action to hold the Iranian regime accountable," said US ambassador to the UN Nikki Haley on Tuesday about the Yemen-launched missile aimed at Saudi Arabia – now in the midst of a purge by new crown prince Mohammed Bin Salman of political, financial and royal rivals.   The finance minister of Spain, Alfonso Dastis, meantime said today that constitutional changes could allow legal independence referendums by the country's regions.   "We have created a committee in parliament to explore the possibility," Dastis told the BBC.   This follows the illegal vote and declaration of secession last month by the parliament of Catalonia, where unions have ignored separatist calls for a general strike and fresh regional elections are now due on 21 December.   Gold prices in Euro terms today rose back to 3-week highs at €1105 per ounce, some 5% above July's 18-month lows.
BullionVault
BullionVault
bullionvault.com
Add a comment...

Post has attachment
Rising Gold Prices Lag Crude Oil as Saudis Accuse Iran of War, Equities Rise with Bitcoin: GOLD PRICES held most of yesterday's 1.0% jump against the Dollar and touched new 3-week highs for Euro investors on Tuesday, trading higher as crude oil rose and Saudi Arabia accused Iran of "direct military aggression" tantamount to a declaration of war.   Wall Street's S&P500 index of US stocks ended Monday with its 11th new record closing high in a month.   Crypto-currency Bitcoin today rallied to regain half of Monday's 6% drop, trading back above $7000 after hitting 5 new daily all-time highs in succession last week.   Crude oil spiked Tuesday to new 2.5-year highs, while Arabian stock markets fell hard – down over 3% – as news broke of further detentions and sanctions against senior Saudi figures by new crown prince Mohammed Bin Salman.   "We expected to some interest in gold following the close above $1280," says one Asian trading desk in a gold price note, "[but] Chinese selling appears to be capping the market."   "Stocks are at record highs, so you don't need gold," says George Gero at the wealth management division of Canada's RBC.   "Gold will turn around when equities start to correct."   Comex gold futures and options have over the last 6 weeks seen their longest streak of speculative liquidation since Donald Trump won the US presidency this time last year, according to positioning data compiled by US regulators the CFTC.   Touching $64 per barrel overnight, Brent crude oil today reached its most expensive value against gold bullion since July 2015 at 20 barrels per ounce.     "The involvement of Iran in supplying missiles to the [Yemen rebel] Houthis is a direct military aggression," the Saudi news agency last night quoted Crown Prince Mohammed Bin Salman, adding that yesterday's missile launch "may [therefore] be considered an act of war against the Kingdom."   After a helicopter crash killed a senior Saudi prince yesterday, a Saudi Royal Court release today mourned without explanation the death of 44-year old Prince Aziz, youngest son of King Fahd, who had reportedly been arrested in Sunday's purge.   Asian stock markets rose and European equities held flat as bond yields edged lower.   Gold prices traded at $1277 per ounce and touched EUR1105 as the start of US trading approached.   "Brent crude is reclaiming the decadal trend line," says a technical note from analysts at French investment bank Societe Generale, "extending its up move [and] finally crossing beyond [that] upward trend line drawn since 1998."   This "breakout" has also seen bullish betting by speculative traders jump to a 6-year high, SocGen notes, supporting the new "upside momentum" in energy costs.   New data from China's central bank meantime said Tuesday that it failed to grow the country's national gold reserves for the 12th month in succession, even as total FX reserves rose for the 9th month running to reach $3.1 trillion.   No.2 gold consumer nation India has seen household demand for the metal fall 25% since last November's shock demonetisation of larger bank notes, the Economic Times reports today, citing a trade association estimate.   Stockmarket-listed jewelry giant Titan Co, in contrast, expects its sales to show a 25% rise this financial year, driven by demonetisation and other anti-black market measures hitting India's smaller, informal and traditional family-run artisan jewelers.
BullionVault
BullionVault
bullionvault.com
Add a comment...

Post has attachment
Gold Sets 13-Week Closing Low, Bitcoin +993% in 2017 as US Jobless Hits 'Tech Bubble' Low: GOLD PRICES gave back a $5 pop on new US jobs data Friday to near the weekend at $1269 per ounce – a 13-week closing low – as world stock markets slipped from new all-time highs.   Crude oil rose but base metals eased back further from their 25% gains of the last 6 months.   Major government bond prices ticked higher, pushing yields down, while crypto-currency Bitcoin set another fresh all-time record at $7454 – up 993% from this day 12 months ago.   October 2017 showed weaker than expected US jobs growth, Friday's official first-estimate said, but the civilian unemployment rate fell to 4.1% of the working age population, the lowest in almost 17 years.   The Dollar rose on the currency market, helping the gold price in Euro terms hold just 0.3% lower for the week at €1093 per ounce.   "Madrid's decisive approach to shutting down Catalonia's bid for independence has won the approval of bond market investors," says Reuters, noting that "investors have piled into Italian, Spanish, Portuguese and even Greek debt over the past month."   That has driven the spread of Spanish 10-year yields over German Bunds back down below 1.2%.   Shares in China's e-commerce giant Alibaba (NYSE:BABA) have meantime "crushed the FANGs" of US tech stocks Facebook, Apple, Netflix and Google, says Bloomberg, gaining 110% so far this year to the 31% rise in Western internet search-leader Alphabet (NASDAQ: GOOGL).   Just missing a new all-time closing high on Thursday, US equity index the Nasdaq has now risen 33% above its March 2000 peak marked the top of the Tech Stock Bubble.   US unemployment last month recorded its lowest level since December 2000.     The gold price "is testing [a] downward channel limit" says the technical analysis led by Stephanie Aymes at French investment bank Societe Generale today, pointing to a downtrend joining September's 12-month high at $1356 with October's lower peak of $1306 and now coming in at $1276.   "Next support is located at recent lows of $1263...also the 200 day moving average," says SocGen.   "I know that once upon a time, a coin was worth $5 if it had $5 worth of gold in it," said US investment bank Goldman Sachs' CEO Lloyd Blankfein in an interview this week, saying he doesn't discount Bitcoin's potential as a genuine currency.   "Now we have paper that is just backed by fiat...Maybe in the new world, something gets backed by consensus."   Meantime in Venezuela, and having failed to pay back cash last month in a gold-swap deal with Deutsche Bank – and so losing some 43 tonnes of bullion reserves – the Socialist government of Nicolás Maduro said overnight it wants a "restructuring" deal on its debt, effectively threatening an outright default according to one analyst quoted by Reuters.    Venezuela's 10-year bond prices fell by 30% following the news overnight.   Spain's courts were today expected to issue a European arrest warrant for rebellion and sedition against Catalonia's ex-governor Carles Puigdemont, now in Brussels.   Belgium's prime minister Charles Michel has asked ministers in his fragile 4-party coalition not to comment on the situation for fear of enflaming separatism in his own country's Flemish region, according to newspaper Le Soir.
BullionVault
BullionVault
bullionvault.com
Add a comment...

Post has attachment
Interest Rate Expectations 'Driving Gold Prices' as Fed Holds, BoE Hikes Yet Pound Sinks: GOLD PRICES held or rose near multi-week highs for most investors outside the US Dollar and Euro on Thursday, as the Bank of England followed the Federal Reserve's widely expected "no change" decision by raising UK rates off an all-time record low as analysts and traders had forecast.   The Pound fell hard on the UK news, erasing all of this week's prior 2 cent gain to trade back at $1.3050 on what pundits called profit-taking.   That pushed the UK gold price in Pounds per ounce up towards 2-week highs above £974.   Dollar gold prices held little changed at $1277, slightly higher for the week so far, while Euro priced gold held at €1096.   European stock markets slipped and London's FTSE100 gave back all of a sharp jump made as the Pound fell on the Bank of England's 12 noon decision.   "Today's decision is straightforward," said BoE governor Mark Carney, presenting today's decision alongside the Bank's latest quarterly Inflation Report.   "With unemployment at a 42-year low, inflation above target and [GDP] growth just above its new, lower speed limit, the time has come to ease our foot off the accelerator."   "A rules-based approach" on the so-called non-accelerating inflation rate of unemployment (Nairu) "would deliver higher rates faster" wrote French investment bank analyst Kit Juckes last month of potential US Federal Reserve chair John Taylor's academic analysis.   "These aren't normal times," said Carney at the Bank of England on Thursday, pointing to the UK's Brexit vote to leave the European Union as a cause of "uncertainties [now] weighing on domestic activity, which has slowed even as global growth has risen significantly."   "Inflation is above our 2% target because of the sharp fall in the Pound triggered by the EU referendum," says the Bank's Inflation Report.   But even after today's rate rise, "Debt servicing costs remain historically very low," say the minutes from the Monetary Policy Committee's meeting.   Two members dissented, preferring to hold rates at 0.25% and mirroring the previous run of 7-2 decisions against raising rates.    When Bank Rate last stood at 0.5%, back in July 2016, inflation in the official UK consumer-price index was running at 0.6% per year. It came in at a 5-year record of 3.0% for September this year.   So far in 2017 gold priced in Sterling has averaged its highest-ever January-to-October level outside of 2012 at £980 per ounce.   "US interest rates and their expectations have for some time been the single most important driver of gold price fluctuations," says the new Precious Metals Brief from institutional news-source PAM Insight and specialist analysts Metals Focus.   With Donald Trump expected to name current Fed governor Jerome Powell as his pick for the central bank's role of chair later today, Wednesday's "no change" statement from the US central bank was seen "reaffirming the view that a December hike is in their baseline, and it's in ours as well," says UK bank Barclay's chief US economist Michael Gapen, speaking to Bloomberg in New York.   However, the odds of no change or just 1 more rise before October 2018 rose after Wednesday's Fed decision, reaching 65.4% from 62.0% this time last week according to betting on interest-rate futures.   Today's UK economic forecasts from the Bank of England project two more interest rate hikes over the next 3 years, taking the cost of short-term borrowing up to 1.0% by late-2020 – some 18 months after the UK is scheduled to leave the EU.
BullionVault
BullionVault
bullionvault.com
Add a comment...
Wait while more posts are being loaded