LIVE Gold Prices $  | E-Mail Subscriptions | Update GoldSeek | GoldSeek Radio 

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

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

COT Gold, Silver and US Dollar Index Report - January 24, 2020
By: GoldSeek.com

Gold/Silver Ratio, SPX, Yield Curve and a Story to Tell
By: Gary Tanashian

Gold-Miner Valuations
By: Adam Hamilton, Zeal Research

Gold 2nd Leg Up Beginning (video update)
By: Gary Savage

“Cash Is Trash” In 2020, Hold Gold In a Diversified Portfolio – Dalio at Davos
By: Mark O'Byrne

Precious Metals Update Video: Good action in the gold market
By: Ira Epstein

The Seduction of Betting Against the Sure Thing
By: Rick Ackerman, Rick's Picks

The Next Catalyst for Gold
By: Jordan Roy-Byrne CMT, MFTA

The Us Dollar Index : The Most Important Chart on the Planet
By: Rambus

NOT-Predictions for 2020
By: Gary Christenson, Deviant Investor

 
Search

GoldSeek Web

 
The Impact of Inflation and Deflation on Gold



-- Posted Friday, 6 July 2012 | | Disqus

Today’s AM fix was USD 1591.75, EUR 1285.54 and GBP 1024.29 per ounce.
Yesterday’s AM fix was USD 1617.00, EUR 1285.37 and GBP 1032.90 per ounce.

Gold fell by $18.40 in New York yesterday compared to Tuesday’s close prior to Independence Day, and ended with a small loss of 1.13% at $1,604.40. Silver also dropped slightly, closing at $27.68. Silver is currently trading at $27.48.

Gold did not manage to stay above $1,600/oz in Asian and European trading this morning, and is currently trading at $1,595.90. Gold is still up from a recent low of on the 28th of June at $1,552 oz. Key US employment data is due to be released later today.

WGC – The Impact of Inflation and Deflation on the Case for Gold

Following yesterday’s WGC reports about the role of gold in investment portfolios, this report looks at gold’s performance during inflationary and deflationary times. Gold, non-perishable and limited in supply, is seen as relatively immune to inflation, financial crises and credit default. Topically, periods of negative real interest rates are thought to support the demand for gold, because the opportunity cost of holding gold decreases when real interest rates fall. Weak dollar has also been seen to drive up the price of gold.

Real gold price

The report concludes that gold may perform especially strongly when inflation is high, the dollar is weak, and there are elevated levels of financial stress, highlighting the role of gold as risk insurance in a balanced portfolio. There have been several recent inflationary periods in the world, but periods of general deflation have been rare. Nonetheless, the report suggests that in deflationary times, gold’s demand as a store of value increases even when the demand for commodities that are industrial demand-driven is likely to fall.

US dollar exchange rate and gold

The full report is available on the World Gold Council website.

For breaking news and commentary on financial markets and gold, follow us on Twitter.

NEWS

Gold struggles ahead of U.S. jobs report – MarketWatch

Gold Futures Fall On Stimulus Outlook, Dollar’s Rally – Bloomberg

Gold steady before US jobs data, 2nd wk of gains likely - Reuters

GoldCore Limited
Ireland:

14 Fitzwilliam Square
Dublin

United Kingdom:
No. 1 Cornhill
EC3V 3ND UK

IRL 
+353 (0)1 632  5010
UK 
+44 (0)203 086 9200
US 
+1 (302)635 1160

Twitter, Facebook, YouTube, LinkedIn:

Linkedin - www.linkedin.com/pub/mark-o-byrne
Twitter - www.twitter.com/goldcore

Facebook - www.facebook.com/GoldCore
Youtube - www.youtube.com/GoldCoreLimited


-- Posted Friday, 6 July 2012 | Digg This Article | 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 - 2019



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


Map

The views contained here may not represent the views of GoldSeek.com, Gold Seek LLC, its affiliates or advertisers. GoldSeek.com, Gold Seek LLC 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, Gold Seek LLC, is strictly prohibited. In no event shall GoldSeek.com, Gold Seek LLC or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.