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

Commentary : Gold Stock Review : Markets : News Wire : Quotes : Radio : Silver : Stocks - Main 
  
 GoldSeek.com >> News >> Story  Disclaimer 
 
Latest Headlines

Where’s the Growth?
By: John Mauldin

Death Knell for the Bull Market?
By: Rick Ackerman, Rick's Picks

Asian Metals Market Update
By: Chintan Karnani, Insignia Consultants

GoldSeek.com Radio: John Embry & Richard Daughty, and your host Chris Waltzek
By: radio.GoldSeek.com

Is World Gold Council's CEO angling for a tin-foil hat?
By: Chris Powell, Secretary/Treasurer, GATA

Desperate Acts to Retain the Paper Monetary System
By: Christopher Funston

Gold And Silver – Current Price Is The Story
By: Michael Noonan

Precious Metals Continued Showing Major Weakness With the Capitulation Point Now Not Far Off
By: Warren Bevan

Gold Seeker Weekly Wrap-Up: Gold and Silver Fall Over 1% and 4% on the Week
By: Chris Mullen, Gold-Seeker.com

Monetary Policy Killing the System
By: Jim Willie CB

 
Search

GoldSeek Web

 
Precious Metals Gain as Cyprus Back-Tracks on Selling Reserves



-- Posted Tuesday, 16 July 2013 | | Disqus

BullionVault

London Gold Market Report

From Adrian Ash

 

PRECIOUS METAL prices rose Tuesday morning in London, after the finance minister of Cyprus said selling some of the debt-laden Mediterranean island's gold reserves was "only an option" for raising cash.

 

"The possibility of selling gold is known, but only as an option," Harris Georgiades told journalists in Nicosia.

 

"It will be considered, when the time comes, with options, or rather, all other options."

 

Last week the Cypriot president Nicos Anastasiades said that "I want to believe there will never be such a need" for selling some gold reserves.

 

"The issue is not being discussed by the government, it is a responsibility of the central bank," he was quoted by Reuters.

 

Mid-April's proposal that Cyprus should sell some of its small gold reserves saw the metal drop more than 15% over the next two trading days.

 

Despite holding only 13.9 tonnes of gold bullion, the idea was seen by some analysts and traders as "the thin end of the wedge" for other debt-laden countries in the Eurozone.

 

All told, Eurozone central-bank gold reserves total 10,783 tonnes.

 

That's more than one ounce in every three held in official-sector bullion vaults according to data compiled by the World Gold Council.

 

"The April price moves [after talk of Cyprus' gold sale] severely damaged the notion that gold provides any degree of risk protection or really acts as a safe haven," says a new gold price forecast from analysts at Citigroup.

 

"We see little prospect of investors returning to gold in the short or medium term," they add, forecasting a fresh 3-year low of $1100 per ounce by end-2013.

 

Technical analysis of the gold price charts by Barclays sees gold falling to that level in just the next two months.

 

Meantime Tuesday, silver followed the gold price higher, regaining the $20 per ounce level, while European stock markets ticked up.

 

Commodity prices also rose, as did major government bond prices.

 

"[Gold] investors remain sidelined," reckons Xiang Nan, analyst at CITIC Securities Futures Co. in Shanghai, quoted by Bloomberg, "before Bernanke's testimony [to Congress on Wednesday] for clues on the Fed’s stance on monetary stimulus."

 

"Gold price gains are expected to stall around $1300 as physical buyers stay away."

 

Ahead of the US Fed chairman's twice-yearly appearance before the House Financial Services Committee on Wednesday, the US Dollar slipped against the Euro single currency.

 

That capped gains in the Euro price of gold at €986 per ounce, in line with last week's close.

 

April's initial gold sales plan, proposed by Cyprus' other Eurozone partners, the European Central Bank and the International Monetary Fund, was intended to raise €400 million of a total €10 billion rescue package.

 

The same quantity of gold bullion if sold at Tuesday's AM London Gold Fix would have raised only €314 million.

 

Adrian Ash

 

Adrian Ash is head of research at BullionVault, the secure, low-cost gold and silver market for private investors online, where you can buy gold and silver in Zurich, Switzerland for just 0.5% commission.

 

(c) BullionVault 2013

 

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.


-- Posted Tuesday, 16 July 2013 | 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 - 2014


© GoldSeek.com, Gold Seek LLC


GoldSeek.com Supports Kiva.org

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.

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.
OilSeek.com