Spain Denies Bailout Story, Gartman Says “Everyone Needs to Own Gold”
By: Ben Traynor
Wednesday, 3 October 2012
London Gold Market Report
SPOT MARKET gold prices rallied to $1781 per ounce ahead of Wednesday’s US session, recovering from slight losses earlier in the day to stay in line with recent trading, while stock markets were broadly flat and the Euro reversed earlier gains, as analysts speculated on when and whether Spain will request a bailout.
Silver prices rose briefly above $34.90 an ounce before easing back, while other commodity prices fell and UK and German bonds gained.
“We do not, at this stage, believe that another significant up move [for gold], that is to say to the $1900 level, will be seen before further consolidation has occurred,” says Axel Rudolph, senior technical analyst at Commerzbank.
“The $1815 area may be reached, though.”
Western households grew more bullish towards gold last month, according to Gold Investor Index data published by online gold and silver exchange BullionVault Wednesday.
The Gold Investor Index, which tracks the balance between gold buyers and sellers on BullionVault’s exchange, rose to 52.5 last month, up from 52.1 in August. A figure above 50 indicates more individual buyers than sellers during the month.
September saw the European Central Bank unveil its unlimited sovereign bond buying program, Outright Monetary Transactions, while the US Federal Reserve announced an open-ended third round of quantitative easing. The Eurozone crisis also returned to the headlines.
“Private households are continuing to join the bull market,” says BullionVault head of research Adrian Ash.
“But the response by retail investors to both QE3 and the latest phase of the Eurozone crisis is more measured…than the recent price action alone might suggest.”