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Gold market news and charts week 36

Gold market news and charts week 36

1. Gold backed oil futures contract is not happening

There were rumors spreading about the continuation of de-dollarization in the past two weeks when Nikkei Asian Review published news that China is expected shortly to launch a crude oil futures contract priced in yuan and convertible into gold in what analysts say could be a game-changer for the industry. 

Koos Jansen was the first to challenge the gold-bugs excitement.

And now it was confirmed that gold backing is not going to happen.

Koos provided few additional observations worth remembering and what I believe can be a good future catalyst for gold considering that the motivations for owning crypto currencies are almost the same.

2. Gold trading volume breaking above 2011 high

Gold has pulled in traders like never before on its way to the highest price in a year. Volume on the Comex in New York, the largest bullion futures exchange, hit a record in August as North Korean tensions and a weaker dollar boosted demand for the metal. Some 6.55 million contracts - worth almost $900 billion now - changed hands last month, more than when Donald Trump was elected U.S. president or during substantial price spikes and slumps.

This week, $6.6bn went into bonds, $3.7bn into equities, and $1.3bn into gold. Speaking of the latter, this was the biggest inflows in 30 weeks.

Monthly Comex Gold Record Volume On Comex

Monthly Comex Gold Record Volume On Comex

3. Dollar index new low since 2014

The U.S. Dollar Index (USDX, DXY), a measure of the value of the United States dollar relative to a basket of foreign currencies hit new lows going back to December 2014.

It means that the Trump incited breakout to new highs after the election is completely reversed with gold breaking below crucial 2-year support 92-92,50.

Dollar Index Weekly Chart 2015-2017

Dollar Index Weekly Chart 2015-2017

At the same time closely watched USDJPY slid to new 2017 lows.

USDJPY Daily Chart

USDJPY Daily Chart

4. Gold closed at highest level since September 2016

At the same time, gold closed above the last year's highs created just after Trump election results became public. Gold rallied 4,5% after breaking important technical level at $1300 last week. Holding above this level is a strong bull market signal. Gold closed this week just shy of 20% gains measured from the December 2016 lows. Continue here for the comprehensie technical analysis of recent gold performance.

Gold Daily Chart

Gold Daily Chart

5. Central banks continue to own stock and  bond markets

In 2017 there has been $1.96 trillion of central bank purchases of financial assets in 2017 alone, as central bank balance sheets have grown by $11.26 trillion since Lehman to $15.6 trillion.

Reading this one important question comes to minds. Where is the recovery we are hearing about when central banks need to buy 2 trillion worth of assets with newly created money? Who gave central banks the mandate to purchase them? 

6. New research claims gold can help with hard-to-treat cancers

 

Dr Asier Unciti-Broceta, from Cancer Research UK’s Edinburgh centre, said: “We have discovered new properties of gold that were previously unknown and our findings suggest that the metal could be used to release drugs inside tumours very safely.

 

"In particular, it could help improve treatment for brain tumours and other hard-to-treat cancers. The next steps will be to see if this method is safe to use in people, what its long and short-term side effects are, and if it's a better way to treat some cancers."

Have a great day friend. Keep looking up.

Gold And Silver Unusual Gapping

Gold And Silver Unusual Gapping

12 reasons why I started investing in uranium stocks

12 reasons why I started investing in uranium stocks