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

GoldSeek.com Radio: John Embry and Charles Hughes Smith, and your host Chris Waltzek
By: radio.GoldSeek.com

Amid Bad Fundamentals, Gold Sector Rally May Have Begun
By: Gary Tanashian

Bitcoin Proves You Cannot Have Your Digital Cake and Eat it Too
By: Nathan McDonald

Relief Rally in Gold Mining Stocks
By: Jordan Roy-Byrne CMT, MFTA

The Morgan Report's Weekly Perspective
By: David Morgan

Outlook for gold – 2018
By: Alasdair Macleod

Stephen Poloz Right To Be Worried
By: Peter Diekmeyer

The Yield Curve And The Boom-Bust Cycle
By: Steven Saville

Gold Seeker Weekly Wrap-Up: Gold and Silver Gain Roughly 1% on the Week
By: Chris Mullen, Gold Seeker Report

Ira Epstein's Metals Video 12 15 2017
By: Ira Epstein

 
Search

GoldSeek Web

 
Gold and Silver Market Morning: May-20-2016 -- Fed concerned about the Chinese Yuan!


 -- Published: Friday, 20 May 2016 | Print  | Disqus 

Gold TodayGold closed in New York at $1,254.60 on Thursday, down from Wednesday’s $1,257.30, a fall of $2.70. On Friday morning in Asia it held at $1,254.60 while the U.S. dollar weakened slightly.

 

LBMA price setting:  $1,256.50 up from Thursday’s $1,253.75.

 

Yuan Gold Fix

Trade Date

Contract

Benchmark Price AM

Benchmark Price PM

2016  05  20

2016  04  19

SHAU

SHAU

264.82

265.15

264.46

264.47

Dollar equivalent @ $1: 6.5442

+$1: 6.5646

 

$1,258.64

$1,256.30

$1,256.93

$1,253.08

 

With such small moves overnight all global gold markets recorded prices moving only slightly. No conclusions can be drawn from their moves against each other, right now.

 

The gold price reacted to the stronger dollar while the Chinese Yuan stabilized at slightly higher levels against the dollar.

 

What we find of note is that in the Fed minutes concerned was expressed, “because of unanticipated developments associated with China’s management of its exchange rate.” No such concern was expressed by the moves of the euro or the Yen. Why?

 

We feel it is because the U.S. Treasury can influence both the euro and the Yen exchange rates, but not the Yuan, as the Yuan and the Chinese economy is not directly influencable by the U.S. As the volume of trade with China is very large, it does affect the U.S. economy.

 

The current policy of a slow devaluation of the Yuan may well be an important topic at the G-7 meeting going on at the moment.

 

The dollar index is at 95.30 down from yesterday’s 95.36 The dollar is also stronger against the euro at $1.1219, than Thursday’s $1.1194.

 

The gold price in the euro was set at €1,118.42 down from Thursday’s €1,126.47.

 

Ahead of New York’s opening, the gold price was trading at $1,256.30 and in the euro at €1,119.80. 

 

Silver Today –The silver price closed in New York on Thursday at $16.48 lower than Wednesday’s $16.84 a fall of 36 cents. Ahead of New York’s opening the silver price stood at $16.54.

 

Gold (very short-term)

The gold price will find a bottom, in New York today.    

 

Silver (very short-term)

The silver price should stabilize, in New York today.    

 

Price Drivers

With the meeting of the G-7 in Japan today, one of the topics of great importance to them, which will be discussed, is the devaluation of currencies to gain competitive advantage against the globe’s main currencies. It was discussed at previous meetings to little avail apart from a broad commitment not to do it.

 

Since then both Japan and the Eurozone have blatantly embarked on such policies without direct intervention in the foreign exchange markets. Now Japan has a dire need to follow such a policy with direct intervention in their foreign exchanges. Will the G-7 OK this?

 

At the same time China, whose exchange rate against the U.S. dollar became a point of focus for U.S. politicians and remains so [see above], was dragged up by its dollar peg to be overvalued by around 10%. It is allowing its currency to gently slip towards 7.00 against the dollar, from a peak of close to 6.08. It now stands at 6.54 to the dollar.  This suits its interests but it may well become a hotbed of objection again, if this continues. Should they, if others are blatantly doing the same?

 

There is no doubt in our minds that the structure of China’s gold market, under the eye [and control]  of the PBoC and its keenness to see Chinese investors long of gold, is being encouraged, as they see currency turmoil in the future, when eastern and western interests diverge strongly.

 

Gold ETFs – Wednesday saw purchases of 4.457 tonnes into the SPDR gold ETF and a purchase of 1.05 tonnes into the Gold Trust. This leaves their holdings at 860.343 and 199.43 tonnes in the SPDR & Gold Trust, respectively. 

 

Once again these were substantial purchases on a daily basis, and yet dealers in New York simply slowed the fall in prices.

 

Silver –The Silver price pulled back sharply and needs more time to find its bottom still.

 

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

Sf1,245.18

Sf1,238.75

US

$1,256.30

$1,250.00

EU

€1,119.80

€1,116.67

India

Rs.85,246.24

Rs. 84,206.25

China

Y 8,218.46

Y 8,185.50

 


| Digg This Article
 -- Published: Friday, 20 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 - 2017



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.