2. Points To Be Discussed Today:
โข Surging Stock Markets Dull Gold's Investing Shine
โข The Gold Investor Index
โข Gold Buyers Continuing To Beat The Number Of
Sellers
โข GOLD Signals & Technical Analysis
โข Gold Basic & Technical Chart
โข Gold Price
3. Surging Stock Markets Dull Gold's
Investing Shine...
โข FALL 2021's surging inflation rates continue to leave
investors cold on gold, with sentiment towards the precious
metal falling to its weakest level since mid-2019, writes
Adrian Ash at BullionVault.
โข By weight, in contrast, gold investing demand rallied
sharply last month from September's net selling โ the first
(if small) liquidation of gold by users of the market-leading
e-commerce platform for trading physical gold since the
eve of the Covid Crisis.
โข But the surging cost of living has failed so far to ignore
strong demand to invest in gold, and prices are equally flat.
4. Surging Stock Markets Dull Gold's
Investing Shine... - I
โข That's because major central banks are following
emerging markets in tightening monetary policy,
creating a headwind for non-yielding gold even though
interest rates remain far below the pace of inflation.
โข With US inflation now running at 3-decade highs, more
than reversing the pandemic's commodity-price crash,
the Federal Reserve is expected to start reining back its
historic pandemic stimulus at this week's policy
meeting, tapering new QE money creation from the
current $120bn per month.
5. The US Dollar Saw Gold Average Its
Lowest Price
โข The resulting strength in the US Dollar saw gold
average its lowest price in 4 months in October,
just below $1777 per ounce, while prices for both
Euro and UK investors rose marginally.
โข Across Bullion Vault's global user base of more
than 99,000 customers, the number of gold
buyers slipped 13.9% from September while the
number of sellers rose by 12.7%.
6. The Gold Investor Index
โข Together that took the Gold Investor
Index, a unique measure of revealed
preference among the largest single pool
of private bullion owners worldwide,
down from 54.7 to 53.4, just below
January 2020's pre-Covid low to its
lowest reading since July 2019.
8. The Gold Investor Index - II
โข New all-time highs in the stock market are also leaving gold
investing in the shade, as do the supply-chain pressures
driving energy and other commodity prices higher.
โข None of this undermines gold's value as a portfolio hedge.
โข On the contrary, gold's strongest returns tend to come
when equities suffer long-term losses, and investors
choosing to buy gold today are doing so when the market is
quiet and other asset prices are looking increasingly over-
extended.
9. The Gold Investor Index - III
โข A reading of 50.0 would signal an exact balance
between the number of people starting or adding
to their personal gold holdings with those who
reduced or sold out entirely.
โข The Gold Investor Index hit a decade-low of 49.1
in June 2019 as prices rose sharply, followed by a
decade-high of 65.9 in March 2020 when the
Covid Crisis first hit.
10. Gold Buyers Continuing To Beat The
Number Of Sellers
โข With the number of gold buyers continuing to
beat the number of sellers last month, gold
demand was positive by weight in October, more
than reversing the previous month's liquidation
with net purchases totalling 123 kilograms.
โข September had seen Bullion Vault users as a
group sell gold for the first time since January
2020, eve of the global Covid Crisis, with net sales
of 87kg.
11. Last Month's Growth
โข Last month's growth took the total quantity of
gold owned by and insured for BullionVault
users.
โข All held in each client's choice of New York,
London, Singapore, Toronto and, most
popular, Zurich โ reach a new month-end
record above 47.7 tonnes, now worth $2.7bn
(ยฃ1.9bn, โฌ2.3bn, ยฅ309bn).
