Gold Investment Dollars Facing Increasing Competition From Equity Markets

NEW YORK - March 20, 2013 - PRLog -- Gold is facing growing competition for investment dollars from the stock markets, which have been increasing to record levels last week. Gold dropped beneath $1580 per ounce Thursday morning, while gold in Sterling and Euros fell back beneath £1060 and €1225 an ounce respectively, extending losses from a day earlier that following stronger-than-expected US retail sales information. Like gold, silver drifted lower this morning, dipping beneath $28.60 an ounce, while other commodities had been broadly flat and European stock markets ticked higher. How high will silver go? Learn more >>  http://www.silverpricestoday.cc/

US, UK and German government bond prices dropped, while the US Dollar Index, which measures the Dollar's strength against a basket of other currencies, rose to its highest level since August. The Dow Jones meanwhile ended greater Wednesday for the ninth day in a row, setting another new record high.

"The US stock marketplace [is] now increasingly viewed as gold's primary 'competition' for investment Dollars," says Ed Meir, metals analyst at brokerage INTL FCStone. "We believe gold lacks both technical momentum and investment interest to recover considerably from present levels," adds a note from Credit Suisse. "Gold has lost its luster," agrees Danske Bank senior commodities analyst Christin Tuxen, speaking at FX Debates occasion in London Wednesday.

"Some of the factors investors had last year to purchase into gold are now gone. The focus will probably be on interest rates not surging, but steadily moving greater." Gold Coins, Learn more >> http://www.silverpricestoday.cc/GOLD-COINS/

China's central bank has shifted from last year's pro-growth loose monetary policy stance to a "neutral" one, People's Bank of China governor Zhou Xiaochuan has stated. "Obviously there is a lot of [gold] investment demand in China... a sizable part of why individuals in China purchased gold is because prices went up " says Credit Suisse analyst Ric Deverell, adding that a price fall might be detrimental for Chinese gold demand.

In the US, the Commodity Futures Trading Commission is contemplating whether or not the twice-a-day London Gold Fix, which sets the international benchmark gold price, could have been manipulated in exactly the same way as the London interbank provided price (Libor), the Wall Street Journal reported Wednesday. "[The fixings are] not arbitrary," stated a spokesman for the London Bullion Market Association. "It's very much done on a demand-supply basis till a price is arrived at. It is totally transparent, it is absolutely nothing like Libor."

Over in Europe, "substantial progress is being produced toward structurally balanced [government] budgets," based on a draft European Union summit statement obtained by reporters ahead of the two-day meeting, which begins today. The statement calls for "growth-friendly consolidation" of government finances.

In other places in Europe, Ireland borrowed €5 billion selling new benchmark 10-Year bonds yesterday, the first such sale since the nation was bailed out in 2010.

The volume of gold production in South Africa fell 8.1% year-on-year in January, regardless of total mineral production increasing 7.3% over exactly the same period, based on Statistics South Africa figures published Thursday. Analysts are recommending buying gold and buying silver to protect your wealth in these chaotic financial times. How high will silver go? Learn more >>  http://silverpricestoday.cc/