Gold: Stable farewell to the weekend

gold stableBefore the weekend, a growing risk aversion of investors helped the crisis protection to a stable week end.

At the weekend, an important meeting of the seven largest economies takes place in Canada. In the run-up to the event, the hope for progress in the dispute over international trade relations is obviously limited. However, capital flight from emerging economies such as Brazil is also currently presenting itself as a significant problem.

With a renewed increase in interest rates expected next week in the USA , this is more likely to be a source of unrest than relaxation. In such an environment, investors seem to be reducing their risk somewhat before the weekend.

On Friday afternoon, the gold price presented itselfwith held quotations. Until around 2.30pm (CEST), the most actively traded futures contracted for gold (August) by $ 0.60 to $ 1,302.40 per troy ounce.
Crude oil: offer of OPEC in descent

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Gold: stagnation before the flood of data on the US labor market

gold-prices-weakDespite weak equity markets in Europe, gold remains in the red due to the strong dollar.

Tomorrow will also be the numbers on the US labor market opened and could thus provide more movement in dollars and gold . Let’s start with the ADP monthly report (14.15) on the development of new jobs. James Bullard, of the St. Louis Fed, might be in for a statement tonight about any signs of future US monetary policy provide the gold price with new impetus in one or the other direction.

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Risk of collapse: billionaire puts half of his fortune in gold

naguib-sawirisThe Egyptian billionaire Naguib Sawiris owns $ 5.7 billion in assets. Half of them now invested in gold – to protect themselves from the supposedly imminent crash.

Naguib Sawiris is the second richest man in Egypt and chairman of the Orascom Telecom Media and Technology Holding . Sawiris has not only made his fortune in the Egyptian telecommunications industry, but also in relatively unpopular markets such as Iraq, Pakistan, Bangladesh and even North Korea.

In the financial sector, too, Sawiris has gained a foothold by buying the Egyptian investment bank Belton Financial Holding – with no less a goal than founding the largest investment bank in Egypt through another acquisition. In addition, Sawiris is a major investor in the mining industry and holds interests in Evolution Mining , the Endeavor Mining Corporationand at La Mancha Ressources.

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Are we facing a new gold rally?

gold bar lustre

Gold is doing something we have not seen for 5 years

The last more than two months have been a kind of wake-up call for investors. After a particularly uneventful year in 2017, when the stock market climbed sharply without significant downward movement, Wall Street and investors were surprised by the rapid corrections in February and March.

As you might expect, not too many industries have escaped the sudden decline in equities. The fast-growing technology sector is volatile, the social media giant Facebook is involved in a privacy scandal. Meanwhile, most US multinational companies have been struggling since US President Trump’s announcement of punitive tariffs on steel and aluminum.

We have not experienced anything like that for five years
But an asset has not fallen in step with the stock market: gold. The shiny yellow metal has improved by 2.4% by April 12th. By comparison, the Dow and S & P 500 have fallen 1.4% and 1.8% since the beginning of the year and more than 10% since reaching their historical highs on January 26th.

Strong first quarters have been common for gold in recent years. In 2016, Gold even achieved the best performance in three decades. But it is not the nominal rise in the price of gold in the first quarter of 2018 that is so impressive. It’s what the precious metal has been doing from a trading perspective since the beginning of the year.

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