The price of gold a victim of profit-taking

Once is not custom, gold has not benefited Monday from its role as a safe haven. Investors seem to have the contrary "relieved" of their investment in the precious metal to cover losses in other markets. By mid afternoon, the price of an ounce of gold was trading around 1820 dollars, while prices went up Friday to 1885.90 dollars.

On Tuesday, gold had even reached a record high of 1921.15 dollars. A surge that has allowed some to reap serious benefits and allowing them to absorb the consequences of their unfortunate investments.
Let us recall that an ounce of gold was still up 15% in a month. The surge in gold is also hampered the last few hours by the renewed strength of the dollar, the greenback Monday reaching its highest level in six months against the Euro. A situation that makes it less attractive raw material purchases denominated in U.S. currency.

Still, the phenomenon could be a passenger, uncertainties regarding the euro area accentuated a little more each day. It should be noted as well as the largest gold funds listed globally, SPDR Gold Trust, saw the level of its holdings increase by 10.5 tons during the single day of Friday to reach 1,241 tons now.

Oil prices on the increase

Oil-barrel prices rose sharply Wednesday in New York, boosted by the weather and a report from the Fed to say the least optimistic about U.S. growth. The recovery of strength in the stock markets will do the rest. On the New York Mercantile Exchange, a barrel of light sweet crude for October delivery had soared to well over 3.32 dollars Tuesday, up to now the value of 89.34 dollars. Meanwhile in London, the price of Brent North Sea for the same period was trading at 115.80 dollars on the Intercontinental Exchange, rising 2.91 dollars so.

The price of crude rose sharply at the opening as markets react strongly to climatic conditions observed in the Gulf of Mexico, a region where most of the platforms provide a quarter of the oil consumed in the country. Investors have largely responded to the report published by the Office of Management and regulation of ocean energy resources (http://www.cmegroup.com/company/nymex.htmlBOEMRE), the latter indicating that, indeed, if Tropical Storm Lee, who reached Sunday Louisiana had inflicted no major damage, the fact remained that 37% of oil extraction and 18% of gas extraction in the area remained suspended Wednesday.

Although significantly a lower percentages of the values observed the previous day but at a level totally unexpected. Note also a possible disruption of production in Mexico, second largest exporter of crude to the United States while the National Hurricane Center reports that a tropical cyclone could pass within 48 hours, with a probability of 70%.

The price per barrel will also be benefited with the surge in global stock markets observed Wednesday, London and Paris rising more than 3%, while Frankfurt soared more than 4%. Another positive: the report of conditions contained in the Beige Book Federal Reserve (Fed), economic activity in the United States continued to grow at a moderate pace. An ad that has the merit of ending the cycle of bad news experienced in recent times.

Fitch could degrade China because of the banking sector

While the European Union and the United States is buffeted by a debt crisis without precedent, Thursday, rating agency Fitch said it may lower the sovereign rating of China in the next two years. Reasons: the heavy debt the Chinese banking sector, the latter having provided massive loans in recent months.

In an interview with Reuters, Andrew Colquhoun, head of Asia Pacific ratings at Fitch, has considered possible a downgrade in China from 12 to 24 months. "We anticipate a material deterioration in the quality of bank assets. If the problems of the sector are changing as we anticipate, or even worse, the next 12 to 24 months, this would lead us to lower the note," he warned.

Last April, already, Fitch lowered its rating outlook on China's "stable" to "negative", citing concerns that date on the financial stability of the country following the decision in Beijing to increase bank credit to maintain China's economic growth. Currently, Fitch assigns the note to China 'AA-', corresponding to the fourth highest level of its scale, position equivalent to that of Italy and a notch below that of Spain.

In early July, the rating agency Moody's had indicated that for its public debt to China stood at 36% of its Gross Domestic Product (GDP), taking into account the share of the debts of local governments for which Beijing assume direct responsibility. A few days earlier, the National Audit Office had indicated that the debts of the provinces, municipalities and districts Chinese rose late 2010 to 27% of Chinese GDP, representing a total of 1.163 trillion Euros.

The same office had, however, insisted that 63% of this debt would be repaid through revenue budget.

Now where the rub is; that they have borrowed huge amounts from the global financial crisis, via means of ad hoc structures called "platforms financing" or PFL.
Objective: To finance infrastructure and housing projects not always profitable.

But according to the National Audit Office; the "ability to pay is low and faces potential risks in certain areas and certain industries." Indeed, in a snowball effect, some local governments had to make new loans ... to repay the debts already contracted, also heavily dependent on land sales to meet their deadlines.

According to the auditors of governments of China, 108.3 billion yuan (11.8 billion) of loans were made or used fraudulently, the money ends up in banks or stock markets real estate.

Indeed, point out that as a guarantee, the PFL received capital that comes from land assets transferred by the community investment fund and ... fraud, bank lending in the short term what notionally provide a PFL time he gets a larger credit. All of which leads ultimately to the National Audit Office that the platforms of local funding must be "cleaned and regulated."

A bit worried, Moody's said that Chinese banks have lent billions of 8500 yuan (905 billion) out of 10'700 billion yuan (1.163 trillion euros) to local governments ... a situation that causes a high risk exposure.

"The debts existed before the global financial crisis, but they quickly accumulated in the last two years while investment by local governments has been used as a key tool" to boost the economy, adds Moody's.

Copper prices on rise!!!

The price of copper rose on Wednesday at 9304 dollars a tonne, its highest level since early August.Prices remain supported by strong concerns over the production of Chile. The country's largest exporter worldwide, is greatly affected recently by strikes in the mining sector.

Analysts at MF Global, official figures this week reported a fall of 18% of Chile's copper supply in July.A context that would fuel tensions in the market, while new social movements may emerge in the giant Grasberg mine in Indonesia, which represents 4% of world production of copper.

Finally, early Friday afternoon, a tonne of copper for delivery in three months traded at the LME 9025 dollars, 9006 dollars per tonne against the previous Friday.

Oil prices weighed down by Employment in US

The price of oil fell sharply Friday in New York, weighed down by strong employment figures sobering.
Stopping a part of the oil production in the Gulf of Mexico will not even possible to change that. A barrel of light sweet crude for October delivery has thus concluded the day at 86.45 dollars on the New York Mercantile Exchange (Nymex), down 2.48 dollars compared to the previous day. The course was even on the verge of reaching the threshold of 85 dollars, then limit its losses by closing.

You will note in passing that the current price fluctuations are far to affect the price of gasoline. Meanwhile in London, the Intercontinental Exchange, a barrel of Brent North Sea crude for October delivery closed at 112.33 dollars, dropping 1.96 dollars.

The courses were largely impacted by the monthly report on employment. However, while a positive balance of recruitment had been found for ten consecutive months and in contrast to analysts' projections, the American economy has not created any jobs in August. However, some analysts had estimated in early trading as climatic conditions in the Gulf of Mexico could reverse the trend, Tropical Storm Lee threatened oil installations producing a quarter of U.S. crude.

However, while almost 48% of oil production in the area was arrested, corresponding to 666,321 barrels per day, and 33% of offshore gas extraction, prices could rise. Another disturbing fact: according to forecasts from Barclays Capital, gasoline consumption in the United States fell by 4.1% in annual slippery during the summer period, however, conducive to the mobility of Americans.