Jump to navigation

Free Newsletter Modern Trader Follow

Main menu

  • Futures
    • Modern Trader Magazine
    • Commodities
    • Futures Mag Archives
    • ETFs
    • Financials
    • Forex
    • Managed Funds
    • Market Analysis
    • News
    • Options
    • Regulation
    • Technology
    • Trading Strategies
    • Education
    • Futures Op-Ed
  • Favorites
    • Alpha Pages Most Popular
    • Futures Magazine
    • Modern Trader Magazine
    • Most Popular
    • Slideshows & Lists
    • Special Topics
      • Alpha Hunters
      • Bad Boys
      • FINtech
      • High-Frequency Trading
      • Trader's Life
      • Trading Strategies
      • FUTURES MAG's 500th ISSUE
      • We asked traders
  • Traders
    • Market Data
    • Hot Charts
    • Interactive Charts
    • Trading Calendar
  • FINalternatives
  • Hard Assets
    • Home
    • Base Metals
    • Precious Metals
    • Rare Earth Metals
    • Commodities
    • Mining Investments
    • Slideshows
  • Modern Trader
    • Subscribe
    • Past Issues
  • All +
    • Follow Us +
      • FuturesMag
      • Newsletters
      • Facebook
      • Google+
      • Linkedin
      • Twitter
      • RSS Feeds
    • About Us +
      • About
      • Advertise
      • Contact
      • Contribute
      • Privacy Policy
  • !
Follow Futures          
       
more >>

We Asked Traders

We asked traders for their opinion on the launch of bitcoin futures

Sponsored Content

Trading

Equities.com launches unlimited trading via Tradier Brokerage, Transforming into a news & fintech portal

Featured Topics

more Commodities>>

Commodities

Energy demand steps back in play
Advertisement
more Volatility>>

Volatility

Volatility & opportunity in the energy sector
more Financials>>

Financials

Daily Price Action: E-mini S&P 500
more Options>>

Options

Trading Vertical Option Spreads

Advertisement

Could Europe offer after Thanksgiving sales on gold?

By Austin Kiddle

November 23, 2012 • Reprints

The U.S. Comex gold futures rebounded 0.34% in the past two days, ending at $1,729.50 on Thursday. The S&P 500 index went up 0.23% on Wednesday, before the U.S. Thanksgiving holiday. The Euro Stoxx 50 index continued its winning streak on Wednesday and Thursday and surged 4.44% this week. Crude oil has now stabilized around $87 per barrel while the Dollar Index has fallen 0.72% this week to 80.69 on Thursday. Disappointing European economic news contrasts with better news coming out of China. While Germany’s November PMI manufacturing index rose to 46.8 from 46 in October, the Eurozone PMI composite was still stuck at 45.8 in November compared to 45.7 in October. The PMI was last above 50 or in an expansion mode in January this year. The Euro area household confidence index slipped to -26.9 this month from -25.7 in October, reaching a three-and-a-half year low.

During the ongoing EU Summit, the leaders fought over ways to reduce spending in the seven-year EU budget and further delayed the Greek aid talk until Nov. 26. With the 10-year Greek government bond yield falling for 10 consecutive days, market may be expecting an improved deal for Greece. On the positive side, the November China preliminary HSBC manufacturing PMI exceeded 50 at 50.4 compared to 49.5 in October. In the last two quarters, Chinese quarter-on-quarter real GDP growth re-accelerated. Higher Chinese demand should bode well for higher gold demand in the coming months. China is now the world’s largest gold producer and likely the largest gold consumer this year. In 2011, China produced 361 tons of gold while imported 582 tons year-to-date through September. These figures compare to the annual production of gold at around 2,700 tons.

By the way, according to the IMF data, other central banks also continued to add gold reserves in October: Turkey added 17.5 tons, Brazil, 17.2 tons, Kazakhstan, 7.5 tons and Russia, 0.4 tons.  Upcoming important data and events will include the conclusion of the EU Summit, the ECB President’s speech at the 22nd European Banking Congress on Nov. 23, the EU’s sign-off on Greek’s aid on Nov. 26 and the October U.S. durable goods order on Nov. 27.

About the Author

Austin Kiddle is a director of the London-based gold broker Sharps Pixley Ltd.

Related Articles
Energy demand steps back in play
Crude shoulder season blues
Crude corrects on production pop, but demand side is looming
Oil risk factors rise
Refiners work overtime as crude inventories drop
Previous
Credit default swaps top movers: Chile and Nordea Bank
Next
U.S. stocks, oil gain after German confidence data; Euro climbs
Related Terms
Gold 7530European Central Bank 3208European Union 2864S&P 500 2457Congress 1894International Monetary Fund 1712manufacturing 1315Crude oil 647HSBC 543eurozone 416Greek government 181manufacturing index 159

Free Newsletter Modern Trader Follow

Main menu

  • Futures
    • Modern Trader Magazine
    • Commodities
    • Futures Mag Archives
    • ETFs
    • Financials
    • Forex
    • Managed Funds
    • Market Analysis
    • News
    • Options
    • Regulation
    • Technology
    • Trading Strategies
    • Education
    • Futures Op-Ed
  • Favorites
    • Alpha Pages Most Popular
    • Futures Magazine
    • Modern Trader Magazine
    • Most Popular
    • Slideshows & Lists
    • Special Topics
      • Alpha Hunters
      • Bad Boys
      • FINtech
      • High-Frequency Trading
      • Trader's Life
      • Trading Strategies
      • FUTURES MAG's 500th ISSUE
      • We asked traders
  • Traders
    • Market Data
    • Hot Charts
    • Interactive Charts
    • Trading Calendar
  • FINalternatives
  • Hard Assets
    • Home
    • Base Metals
    • Precious Metals
    • Rare Earth Metals
    • Commodities
    • Mining Investments
    • Slideshows
  • Modern Trader
    • Subscribe
    • Past Issues
  • All +
    • Follow Us +
      • FuturesMag
      • Newsletters
      • Facebook
      • Google+
      • Linkedin
      • Twitter
      • RSS Feeds
    • About Us +
      • About
      • Advertise
      • Contact
      • Contribute
      • Privacy Policy
  • !
images