Gold’s London AM fix this morning was USD
1,722.00, GBP 1,095.98, and EUR 1,310.30 per ounce.
Yesterday's AM fix was USD 1,713.00, GBP 1,091.10, and
EUR 1,300.59 per ounce.
In Asia this morning gold fell from its seven week high
as traders took profits ahead of US Gross Domestic Product data to be
released later today (1.30GMT). Gold investors were happy with the
Fed's decision to keep interest rates low, but now the focus will again be on
the eurozone and hopes for a solution to Greece's
Gold will still be supported by central banks who add
to their reserves, plus strong Asian interest from investors and consumers.
Gold rallied to $1,729.76 on Thursday, its strongest since December, but was still well below the
record of $1,920 reached in September 2011. Silver is on track for
nearly a 20% rise this January, its biggest gain since last April.
Economist, Nouriel Roubini, who predicted the 2008 financial crisis,
outlined the following predictions at a conference in NYC on Jan. 19th.
He said, “Rising commodity prices, uncertainty in the Middle
East, the spreading European debt crisis, increased frequency of
“extreme weather events” and U.S. fiscal issues are
“persistent” problems that will continue to spur market
volatility and sway asset prices in the global economy.
This is great news for gold. Goldman Sachs noted in a
report on Jan. 13th that futures will advance to $1,940 an ounce in 12
months. Morgan Stanley forecasts the yellow metal will climb to a
record of $2,175 by 2013, said analysts Peter Richardson and Joel Crane in
their research report.
Futures for February delivery rose 2.1% to $1,700.10
today on the Comex in New York. This is the highest closing price seen since early December.
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