Advertise | Bookmark | Contact Us | E-Mail List |  | Update Page | UraniumSeek.com 

Commentary : Gold Review : Markets : News Wire : Quotes : Silver : Stocks - Main Page 

 GoldSeek.com >> News >> Story  Disclaimer 
 
Latest Headlines

Gold Seeker Weekly Wrap-Up: Gold and Silver Fall Almost 1% and 2% on the Week
By: Chris Mullen, Gold Seeker Report

COT Gold, Silver and US Dollar Index Report - July 20, 2018
By: GoldSeek.com

The Deep State, Trump, and the World
By: Clive Maund

Gold Investment Wanes
By: Adam Hamilton, CPA

The Most Important Charts for Your Gold Stocks Right Now
By: Marin Katusa

The road to war: China’s kryptonite - Part 2
By: Richard (Rick) Mills

GoldSeek Radio Nugget: Bill Murphy and Chris Waltzek
By: radio.GoldSeek.com

NEVER BEFORE SEEN CHARTS: Gold Mining Industry’s Costs Are Higher Than Market Realizes
By: Steve St. Angelo

Powell Sinks Gold, Again
By: Arkadiusz Sieron

Weekly Digest – News, Market Updates and Videos You May Have Missed
By: GoldCore

 
Search

GoldSeek Web

 
Gold and Silver Market Morning: May-4-2016 -- Gold priced by the weak Yuan, silver retreats!


 -- Published: Wednesday, 4 May 2016 | Print  | Disqus 

Gold TodayGold closed in New York at $1,287.10 yesterday down from $1,290.00 on Friday. On Wednesday morning in Asia it pulled back to $1,281.00, as the Yuan weakened against a slightly stronger dollar, before the LBMA price setting in London.

 

LBMA price setting:  $1,280.30 down from Tuesday’s $1,296.50.

 

Yuan Gold Fix

Trade Date

Contract

Benchmark Price AM

Benchmark Price PM

2016  05  4

2016  04  3

SHAU

SHAU

267.79

269.80

268.02

269.06

Dollar equivalent @ $1: 6.5077

$1: 6.4804

 

$1,279.90

$1,294.94

$1,281.00

$1,291.39

 

The Shanghai Gold Fixings today showed only a small change in the Yuan gold price as one would have expected.

 

Why the fall in dollar terms? You will see the value of the Yuan against the U.S. dollar fell 0.25 of a Yuan.  This made all the difference, as it reflected a slightly strengthening dollar or a weakening Yuan, at a time when most other currencies continued strong, overall, against the dollar.

 

For those following the Technical picture, this is confusing because you are not following just the gold price any more, but the gold price in dollars. The Technical picture of gold in the Yuan is now very different. So is the Technical picture defining the dollar’s moves against gold or gold against the dollar? The same applies to all other currencies where the Technical picture is different.

 

Please note that China has been keeping the Yuan stable against the dollar recently, while it weakened against all currencies, but now it seems that China is not averse to weakening the Yuan against the dollar [and more against all other currencies]. As reflected in the gold price in the two currencies the gold price is now moving with the Yuan.

 

The dollar index is higher today, at 93.25 up from Tuesday’s 92.50. The dollar is stronger against the euro at $1.1475 from Tuesday’s $1.1552.

 

The gold price in the euro was set at €1,115.73 up from Tuesday’s €1,122.32.

 

 

Ahead of New York’s opening, the gold price was trading at $1,275.65 and in the euro at €1,111.68. 

 

Silver Today –The silver price closed in New York on Tuesday lower at $17.43 down 8 cents from Monday’s $17.51. Ahead of New York’s opening the silver price stood at $17.19.

 

Gold (very short-term)

The gold price will complete its correction before continuing to rise, in New York today.    

 

Silver (very short-term)

The silver price will complete its correction before continuing to rise, in New York today.    

 

Price Drivers

The battle of the gold price in dollars around $1,300 has given way to a dominant Yuan gold price. We were surprised by this, as little to no physical dealings have gone on in the SPDR gold ETF after the huge purchase of 20 tonnes was seen on last Friday.

 

The influence of exchange rates is now clearly apparent. The gold price in the euro and the dollar has fallen but was relatively stable in the Yuan. This tells us the Yuan price of gold is dominant today. We need to see if this is so in the next days and weeks before we can be conclusive about this, but that is today’s picture.

 

We would have thought that the 20 tonne purchase would have had a greater impact on the gold price in dollars, but exchange rates are the dominant factor in the gold price today.

 

Gold ETFs – Tuesday saw no purchases of gold into the SPDR gold ETF but saw a relatively large amount bought into the Gold Trust of 3.01 tonnes. This leaves their holdings at 824.943 and 191.31 tonnes in the SPDR & Gold Trust, respectively. 

 

While the Gold Trust purchase was a significant amount for the Gold Trust to see, it was not sufficient to overcome the influence of exchange rates, the Yuan dollar rate in particular.

 

Silver – The Silver price has retreated strongly , but may well rise much faster soon as gold recovers and then we expect to see a ‘shunt’ effect on the silver price.

 

Regards,

Julian D.W. Phillips

GoldForecaster.com | SilverForecaster.com | StockBridge Management Alliance

 

About GoldForecaster.com Service:

We focus on keeping our readers on top of the emerging Gold bull market with a global fundamental and technical overview. Members gain access to our comprehensive, weekly report with the latest Gold market news, price analysis, up-to-date portfolio along with coverage of other key markets. Economic and monetary topics are covered as well, along with many other influences that have an impact on the Gold market.

 

Try a $99 trial subscription and gain immediate access to the latest weekly Gold Forecaster Newsletter!

 

Global Gold Price (1 ounce)

 

Today

yesterday

Franc

Sf1,219.07

Sf1,245.21

US

$1,275.65

$1,297.30

EU

€1,111.68

€1,121.40

India

Rs.84,945.53

Rs. 86,335.32

China

Y 8,298.10

Y 8,440.23

 


| Digg This Article
 -- Published: Wednesday, 4 May 2016 | E-Mail  | Print  | Source: GoldSeek.com

comments powered by Disqus



 



Increase Text SizeDecrease Text SizeE-mail Link of Current PagePrinter Friendly PageReturn to GoldSeek.com

 news.goldseek.com >> Story

E-mail Page  | Print  | Disclaimer 


© 1995 - 2018



GoldSeek.com Supports Kiva.org

© GoldSeek.com, Gold Seek LLC

The content on this site is protected by U.S. and international copyright laws and is the property of GoldSeek.com and/or the providers of the content under license. By "content" we mean any information, mode of expression, or other materials and services found on GoldSeek.com. This includes editorials, news, our writings, graphics, and any and all other features found on the site. Please contact us for any further information.

Live GoldSeek Visitor Map | Disclaimer

The views contained here may not represent the views of GoldSeek.com, its affiliates or advertisers. GoldSeek.com makes no representation, warranty or guarantee as to the accuracy or completeness of the information (including news, editorials, prices, statistics, analyses and the like) provided through its service. Any copying, reproduction and/or redistribution of any of the documents, data, content or materials contained on or within this website, without the express written consent of GoldSeek.com, is strictly prohibited. In no event shall GoldSeek.com or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.