|
|
| |
You are here :Home >> Bullion News >> Report |
| |
|
| |
|
| |
|
| |
2008-07-24 18:35:28 |
|
|
| |
Biggest plunge in global jewellery market
By Jon Nadler
Gold prices bounced back slightly overnight following a dip to under $920 as light bargain-hunting emerged in the wake of perceptions that the losses seen thus far this week in both oil and gold may have been a bit overdone. The gold ETF lost nearly 17 tonnes of metal in yesterday's massive commodity sell off and more than 32 tonnes *5% of its balances) over the past two declining session in gold.
The global jewelry market experienced a 21% decline in demand in the first quarter, as compared to 2007. The 445 tonne number tallied by the World Gold Council represents the lowest level of bauble demand since 1993. Just try to tell us that India is irrelevant anymore...The Council certainly does not think so (see yesterday's changing gold ad campaign story).
Although oil firmed a tad, it was still hovering only near $124.50 - nowhere near its peak seen last week. Crude prices were also seen as being mildly supported by renewed hawkish militaristic-flavored statement coming from Israel on the topic of Iranian nuclear development. In background news, it was reported by the BBC that a USGS survey concludes that the Arctic holds about 90 billion barrels of oil - a figure that matches Russia's entire known reserves. Contemplate that.
All of this unfolded while the dollar gained to 1.566 against the euro and was scaling 72.90 on the index. The euro stepped into a small sinkhole overnight as German business confidence revisited levels not seen since the events of 9/11. Over in the US, grand juries are beginning work on dissecting the possible former goings-on at Countrywide and IndyMac. Better don protective breathing apparatus when those files are perused...
New York spot gold prices picked up $3.70 on the open to trade at $925.90 as participants anticipated weak existing June home sales data and initial jobless claims figures. The latter will be taken with the proverbial grain of salt as July is historically not an easy month during which to tally claims on a reliable basis due to automobile plant retooling-related closures ahead of the new model year. Gold remains on the defensive following the shift in sentiment after the start of this week. The $915 area remains a support zone that must hold lest the metal next tries to find buyers under $900 per ounce.
Similarly, the $945 to $965 area must once again be overcome in order to restore derailed confidence in the bull track headed to $1K. Silver was unchanged at $17.36 while platinum continued lower, losing $28 at $1704. Palladium rebounded by $7 to $388 per ounce. The automobile saga continues to churn the noble metals markets. Ford bled nearly $9 billion, Daimler dramatically cut estimates, Renault is reducing work shifts, and GM slipped behind Toyota on a global sales basis. Times, they are a-changin' indeed..
And now,...for something completely different. This is a test. A more-than-funny piece by Mark Gilbert could come in handy as most of us have permanent frowns etched into our faces of late. Yes, this is a Friday funny one day early. But it does contain some pearls as well. I (of course) am most proud that the 'tinfoil' word -coined by my son in January has now made it into the media's jargon.
Jon Nadler is a Senior Analyst with Kitco Bullion Dealers Montreal
|
|
|
| Most
Read : |
| |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| FOREX Reports |
|
| |
Aussie ends lower again |
| |
The Aussie closed trading weaker Wednesday as another lackluster day on Wall Street weighed on risk sentiment.
|
 |
| |
Yen keeps rising |
| |
Japanese yen continued gains Wednesday as investors turned risk-averse after shares in Asia fell on fears that the credit crunch would lead to a sharp slowdown in the global economy.
|
|
| |
Pound sterling recovers against dollar |
| |
Pound sterling continued its recovery Tuesday as traders welcomed the UK government's plan to inject 37 billion pounds into the country's ailing banks.
|
|
|
More> |
|
|
|
|
|
|
|
del.icio.us
Digg
newsVine
Feedburner
