• 306 days Will The ECB Continue To Hike Rates?
  • 306 days Forbes: Aramco Remains Largest Company In The Middle East
  • 308 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 708 days Could Crypto Overtake Traditional Investment?
  • 713 days Americans Still Quitting Jobs At Record Pace
  • 715 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 718 days Is The Dollar Too Strong?
  • 718 days Big Tech Disappoints Investors on Earnings Calls
  • 719 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 721 days China Is Quietly Trying To Distance Itself From Russia
  • 721 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 725 days Crypto Investors Won Big In 2021
  • 725 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 726 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 728 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 729 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 732 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 733 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 733 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 735 days Are NFTs About To Take Over Gaming?
Another Retail Giant Bites The Dust

Another Retail Giant Bites The Dust

Forever 21 filed for Chapter…

How Millennials Are Reshaping Real Estate

How Millennials Are Reshaping Real Estate

The real estate market is…

Market Sentiment At Its Lowest In 10 Months

Market Sentiment At Its Lowest In 10 Months

Stocks sold off last week…

  1. Home
  2. Markets
  3. Other

Gold - The Weekly Global Perspective


Subscribe - via our Website: http://www.authenticmoney.com Samples on the Subscribe page. Technical & Fundamental advice [very-short, short, medium and long term]. Official Gold commentary - Insight & Perspective on the Gold World. See our services at the bottom of this letter.

• Send for Free Sample Copy of " Gold-Authentic Money with an article outlining the present driving forces behind gold.

• Special Offer!: - Do you want to receive your own copy of "Gold - The Weekly Global Perspective" direct to you? - Send e-mail address to: gold-authenticmoney@iafrica.com

That was the week that was!

The market looked like it was going to have a run in gold, but it couldn't quite make it, pulled down by the market perception that the $ would be strong. The Euro dominated the field taking precious metals down with it. Gold showing a very steady hand in Euros, alongside Silver and Platinum, overall. Funds showed themselves on the quick in and out, favouring the downside, but selling has been across the board after Mr Greenspan made the comments that the Federal Open Market Committee "is prepared to do what is required to fulfil it's obligations to achieve the maintenance of price stability, so as to ensure maximum sustainable economic growth." Put so neatly, it was the source of many interpretations from an imminent aggressive driving up of interest rates, to some that said he would be cautious and wait for inflation to appear first. The gold market interpretation was to stay steady, to slightly stronger in Euros, shadowing the Euro in $ terms.

The announcement of a public holiday for the U.S. in to mourn President Reagen's death, has caused the market to close short positions and a flurry of trade ahead of the holiday, but of no real price consequence. Right now with the large and impressive players in the wings of this market, for sometime, the present actors are capricious and emotional, so expect volatility to continue as the market is distracted by the news of the moment, swamping yesterday's news of the moment.

But have no doubt that when the big players return, they will take the reins!

Ask yourself why is the gold price so steady in Euros, and so reflective of the Euro's performance? The price of gold that dominates the market is the $ price, making this question so important. The focussing of all players on this facet highlights that this is a currently a reflection of the $'s performance alone. Why? And wither the $? Look at our comments on interest rates below.

At the time of writing gold stood at $386.25, and Euros 319.55 steady for the last few days in Euros. The Euro itself is worth $1.2081 down 2 on the week.

French Gold Sales confirmed, but with a twist!.

Bank of France governor Christian Noyer said the central bank plans to sell part of its gold reserves to the market, possibly up to 500-600 tonnes, confirming earlier statements of the French Finance Minister. The announced purpose is that the French government is hoping to raise funds from gold sales to help reduce its budget deficit. Few are convinced. Most believe it is a politicians show for the French gallery. The Bank of France head Noyer, added a twist that intrigued us and links to our comments in the series of articles we have been running on the Central Bank Sales: -

Noyer said the central bank will wait until gold prices are "appropriate" before agreeing the sale, adding that a decision will be made either by the end of this year or the beginning of 2005. In addition, he added "The bank will certainly take into account the price. If we feel the timing is not appropriate, then we will wait".

We find ourselves smiling and will be writing our conclusions in one of our main articles that appear in Gold – Authentic Money" each issue. In the latest issue we have in our main article the penultimate in a three part series, on "What drives the Gold price", a facet of the gold market that will catch the market by surprise, we believe, in the near future. It could overwhelm the dominant currency features of the market, pushing the price at the moment. Subscribe to find out what this facet is and how it works in making the gold price!

It's all very well having the parts, but they must be put together to see how they work!

Interest Rate fears.

As interest rates took over from the oil price, as the centre of attention this week, we thought it pertinent to say something on this. The U.S. $ market has factored in an aggressive rate hike at the end of this month, more like 50 basis points rather than 25 basis points. The bond prices tell us that. Why? Productivity has been impressive and wages have started to rise. Most observers are happy with the rises in employment. A likely level of the Fed Funds rate is 2% by years end, we are told. The election year, the daily desire for a dramatic tale to tell on the part of the media and the driving hope that all is well and the future is good support this view. But before we jump on this bandwagon we look around and see: -

• The Fed has to get any rate hikes out of the way in time for them to be a thing of the past, at election time. This puts them into June / July / August at the latest.

But: -

• The U.K. perhaps in a better position to raise rates took a 'cautious' line and raised their rates by 1/4 % only, following a similar move by the Australian government previously. The effect was to 'pop' property prices in Australia. We suspect the same will happen in the U.K., despite a shortage of houses. Could the U.S. consumer react the same way, after all re-financing of mortgages is dropping to a trickle even now, before the hike.

• With the burden at the pump of gas prices set to return, after the dip of this week, in the form of rising prices inflation is certain to take off. The money pump will have to begin flowing again to counteract the drain of money to the middle east and other oil producers.

Mr Greenspan's statement made a major point in a minor way, when he said, "....the maintenance of price stability, so as to ensure maximum sustainable economic growth." In other words his prime objective is "sustainable economic growth" "price stability" is a path to that objective. He will not act in a way so as to damage growth! Inflation will have to be a feature before he attacks it. Yes, he has warned of rate hikes, but we expect them, if they occur at the end of June, to be 25 basis points only. The PPI figures will tell us more tomorrow.

How will the gold price react? The Dollar's performance is dependant on real interest rates relative to other currencies. As it reacts to the Euro, so currently it reacts to gold. But inflation reduces the value of these interest rates. If rates rise following inflation it will be a catch-up situation, which over the longer term, will favour gold. For more of this clarity subscribe to our services below.

Norlisk, the Russian base metals miner, buys Gold mines.

Norlisk the giant Russian metals producer has invested $1.57 billion in gold producing assets. Asked why, the comment from the company was, "The outlook for gold looks great and it's a natural hedge against a global downturn."

South African Gold Mining in difficult straits

With two out of every three South African gold mines, owned by the large producers operating at a loss and a further third are making margins of less than 10%.

A further 3.5% increase in wages is set to damage even these figures. A distressing sight for these producers indeed. The problem? The South African Rand continues around R6.6 to the U.S.$, when to make the mines buoyant again requires a R8.40 Rand price to the $. It seems little hope of that, when the South African economy is growing well and the Reserve Bank seem oblivious to these cries of distress. The 'golden goose' seems to be under attack. With the proposed Royalty to be imposed on turnover, not profits, the knife that could deliver the mortal wound is being put at the ready.


This metal is shadowing the Euro, alongside gold, so its potential run to $6.60 looks unlikely, if we look at this week's performance. The market in the summer season is looking for direction?


Even Platinum took a beating to a small extent alongside currency plays. It remains sound, despite the news that the Chinese are turning to white gold jewellery from Platinum jewellery. The demand for this metal from its industrial uses seems sufficient to keep it looking strong. With the Strongly pernicious effect of the strong Rand continuing, there appears little likelihood of an increase in production for some time.

The London Gold Fix

Gold Fix 3rd June a.m. $384.25   E 318.562
           3rd June p.m. $384.95   E319.249

All moves this week a $ play and steady in Euros!


There is no other service like these! You have the best links to market information and company information, from the original source!

Put your 'hands on the wheel' and finger on the pulse.

 • "Changing Tack - Gold & Precious Metal Shares." - Weekly

Our Precious Metal Share service allows you access to:

   - Share Prices - from the source and instantly! Wetake you to the markets, where you can deal!
   - Important company information - from the source and instantly!
   - Overview of investments.
   - Our original "Comparative Performance Model" whichshowsyou which shares will lead the pack and which will lag, plus the positionof each of the best, selected gold and precious metal shares, in ourpack.
   - Technical advice on Gold and Silver, plus instantaccess to metal prices and the gold fix, from the source.
   - HUI & XAU & JSE Indices Technical advice,
   - Gold / HUI - Gold / XAU Gold / Silver relationships - plus whereto and how to trade ratios of these to maximise profits.
   - Technical advice on the ratios - gold/currencies - gold/equities- gold/silver plus how and where to trade them.

Contribute your suggestions.

With Technical guidance from the best [35+ years experience], in Tony Henfrey, you will be in excellent hands & be shown how and where to Ratio trade etc, in a dynamic way, to improve your returns on these items.

 • "Changing Tack" - Weekly

Allows you access to:

   - Technical advice on Gold and Silver -, plus instant access to metalprices and the gold fix, from the source.
   - HUI & XAU & JSE Indices Technical advice,
   - Gold / HUI - Gold / XAU Gold / Silver relationships - plus whereto and how to trade ratios of these to maximise profits.
   - Technical advice on the ratios - gold/currencies - gold/equities- gold/silver plus how and where to trade them.

The ideal investors tool to keep you professional and your finger on the pulse!

 • "Gold-Authentic Money"- approx bi-monthly

   - Med/Long Term Technicals.
   - Gold - Global economic perspectives.
   - Gold market insights.
   - In depth gold market articles.

Vital for understanding the market, techniques for investing and the compliment to the other two services!

Samples: http://www.authenticmoney.com go to subscribe page and click on the sample you want.

Discount Prices - on website http://www.authenticmoney.com

Contact us @ gold-authenticmoney@iafrica.com

Back to homepage

Leave a comment

Leave a comment