The next focusIR Investor Webinar takes places on 14th May with guest speakers from Blue Whale Growth Fund, Taseko Mines, Kavango Resources and CQS Natural Resources fund. Please register here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Thursday, 5/06/2021 15:49
GOLD PRICES leapt to a new 10-week high Thursday afternoon in London, jumping through $1800 per ounce amid fresh East-West "cold war" rhetoric as Western stock markets fell with longer-term bond yields, but inflation forecasts rose after the US Federal Reserve vowed to maintain its zero-rate and record-QE policies.
Staff from the new White House were today due to start trade talks with Beijing's Communist dictatorship for the first time, but "There is a general worry of miscalculation, and of incidents and accidents" over China's continued belligerence towards its neighbors, said Biden's top Asia official.
Beijing today "indefinitely suspended" co-operation talks with Canberra, blaming the Australian government's "cold war mindset" over China's Belt-and-Road Initiative for trade.
Also speaking in London, Washington's top diplomat today said the US will respond to what the G7 meeting of developed nations he attended this week called Russia's "irresponsible and destabilising behaviour" towards Ukraine.
Silver like gold jumped to its highest since late February, breaking through $27 per ounce for the 2nd time this week and adding 5.3% higher from last Friday's finish.
With Covid cases and deaths in India – the world's 2nd most populous nation – meantime setting fresh daily records, news that US President Joe Biden supports the World Trade Organization's call to suspend vaccine patents to reduce costs for poorer countries saw pharma and biotech share prices sink.
Longer-term borrowing costs fell once more, with 10-year US bond yields now erasing one-fourth of 2021's previous spike to the highest since the eve of the Covid Crisis early last year, dropping to 1.56%.
Inflation-protected bond yields fell faster, down to -0.93% on 10-year TIPS.
Together that put 10-year breakeven rates –the implied pace of inflation now forecast by bond-market trading – up at 2.49% per annum, the highest such "forecast" since April 2013.
US inflation has since averaged 1.8% on the Federal Reserve's preferred PCE measure.
could well do 116p by close
You know what would be a nice cherry on the cake a nice positive rns, how about it Mr Horgan ?
correction raise rates
It's like they talk about rates like pilots talk about aborting takeoff before V1 takeoff velocity, but the point where these charlatans have taken us they cannot abort(lower rates) such is the point we're at because of their past actions. The Yellen creature with her talk of rate rises seemed to forget she's not Fed chairman any longer, you do that in a regular company and you will get chewed out if you're lucky and possibly fired for stepping beyond your role mandate. Powell looks like a right lame ass i bet he didn't even call her out
Perfect storm for gold. Check mate.
Interest rates are not going anywhere i wish they were just to scare the bejesus out of all those mugs who have dived in of late to the UK housing ponzi scheme but i reckon rates will more likely fall than rise. These bluffers are out of runway they can;t raise rates
Gold is the haven for fear of inflation and inflation. IF and its a big IF , interest rates rise to combat inflation then other investments benefit and gold prices fall , for example banks or provider of staple products like Unilever. Imo.
Thanks Thunder. Very good point. I agree that they'll let inflation run for a while before increasing interest rates since they need to get the economies back up and running and it may still be a while before they increase rates to prevent an overheated economy
Yes Ian B we do need gold to hold and close above $1800 but as said here last Fri, when for the first time ever, that I can remember, every wall st gold trader polled on the KITCO weekly survey said gold would fall this week, that was for me a very strong buy signal and this week should end up. Cey has also resisted falling lately unlike some other miners, it is looking stronger, the gap with Hoc for instance has halved, and we have hit the Cey mining nadir, so all in all I am as hopeful as I have been in the last lousy 6 months
Prince_3k - you need to look at the differential aka real interest rate. If they hold interest rates and let inflation run a while you have the perfect bull case for gold. They can't raise rates as it would bankrupt so many companies, they will squeeze the citizens with inflation instead.
1807 and rising atm, needs to hold above 1800 resistance.
120 close!!!!
Finally over $1800/oz. Hopefully we stay above this benchmark moving forward. Any views on the affect of Gold if inflation picks up because I'm slightly confused? If inflation increases, I expect them to increase interest rates which is negative towards gold. On the other hand if inflation picks up wouldn't that make gold more valuable since the USD would be worth less? Views/ anyone with a better thought/idea are more than welcome :)