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Gold’s London AM fix this morning was USD
1,575.75, EUR 1,233.95, and GBP 998.76 per ounce. Yesterday's AM fix this
morning was USD 1,590.25, EUR 1,245.20, and GBP 1,005.34 per ounce.
Silver is trading at $28.18/oz,
€22.18/oz and £17.94/oz. Platinum is
trading at $1,462.00/oz, palladium at $607.10/oz and rhodium at $1,275/oz.
Cross Currency Table – (Bloomberg)
Gold edged up $1.60 or 0.16% in New York yesterday and
closed at $1,593.00/oz. Gold edged slightly higher in Asia but has now fallen
and continued this pattern in European trading where gold is now near $1,576/oz level off about 1% from yesterday’s close in New
York. Gold is about 1% lower in most currencies but only 0.4% lower in
Japanese yen after the Japanese downgrade.
Gold succumbed to profit taking after the nearly 5%
surge of recent days which saw gold rise from $1,527/oz
to $1,599/oz yesterday.
Market watchers await the European Union summit with
regard to the possibility of yet another new plan to solve the area’s
debt crisis. Today, during an informal EU gathering, French President
Francois Hollande is expected to push for mutualised European debt, an idea that Merkel has
opposed.
Resistance is now at the $1,600/oz
and support at $1,527/oz – the low from last
Wednesday.
Today’s data, 1400 Eurozone consumer confidence
for May, 1400 US existing home sales and 1500 Bank of Japan’s interest
rate decision.
Swiss Parliament Examines ‘Gold Franc’
Currency Today
A panel of
the Swiss parliament is discussing the introduction of the parallel
‘Gold franc’ currency.
Bloomberg has picked up on the news which was reported
by Neue Luzerner
Zeitung.
The Swiss parliament panel will discuss a proposal
aimed at introducing a new currency, or a so-called gold franc.
Under the proposal, which will be debated in the lower
house’s economic panel in Bern today, one coin in gold would be worth
about 5 Swiss francs ($5.30), the Swiss newspaper reported. The Swiss franc
would remain the official currency, the paper said.
The proposal may lead to a wider debate about the Swiss
franc and the role gold might again play to protect the Swiss franc from
currency debasement.
The initiative is part of the “Healthy
Currency” campaign which is being promoted by the country’s
biggest party – the conservative Swiss People’s Party (SVP).
Gold Daily Chart USD – (Bloomberg)
The party is reflecting Swiss people’s concerns
about the Eurozone and global financial turmoil and the growing risk of
inflation and seeking to reverse the government’s current policy on
gold – which is that the Swiss franc is a fiat currency, like all
modern currencies and is not backed by gold but by the promises of
politicians and bankers.
Buying gold bullion coins and bars and gold
certificates requires professional advice in Switzerland and some other
countries and banks are the largest providers. Even the smallest gold coins
can cost a few hundred francs.
One of the new gold francs, on the other hand, with a
gold content of 0.1 grams, could be purchased for just 5 francs (at current
prices) and would mean that gold became more widely owned by ordinary people
in Switzerland and could even become a medium of exchange as is happening in
Utah, Montana, Missouri, Colorado, Idaho and Indiana in the U.S where gold
has become legal tender again or is set to become legal tender again.
OTHER NEWS
(Bloomberg) -- Silver Imports by China Were 236.9 Tons in April, Customs
Says
Silver imports by China were 236.9 metric tons in April, according to
data released by the customs agency today. That compares with 255.5 tons in
March. Platinum imports were 6.9 tons in April, compared with 7.4 tons a
month earlier, data showed. Palladium imports were 2.2 tons, data showed.
(Bloomberg) -- Platinum may rise above $2,000 an ounce
- Merrill
Platinum
may rise above $2,000 an ounce by 2014 once the global economy stabilizes,
Bank of America Merrill Lynch said.
Miners in South Africa, which accounts for 79 percent
of world supply, are not profitable, Michael Widmer,
an analyst at the bank, said in an e-mailed report today.
(Bloomberg) -- Japan; Fitch downgrades Japan to A+;
Outlook Negative
(Bloomberg) -- U.S. Mint Silver Coin Sales in May
Exceed April Total
The U.S.
Mint’s sales of American Eagle silver coins have reached 1.54 million
ounces so far in May, according to figures from the Mint’s website.
That tops April’s sales of 1.52 million.
(Bloomberg) -- Economist Dennis Gartman
Says He’s Buying More Gold in Euros
Economist Dennis Gartman is adding to his gold
holdings priced in euros, he wrote today in his daily Gartman
Letter.
(Bloomberg) -- Russia April Gold Holdings Unchanged at
28.8 Million Troy Ounces
Russia’s
central bank kept its gold holdings unchanged at 28.8 million troy ounces
last month, according to a statement published on its website today.
The stockpile was valued at $47.9 billion as of May 1,
compared with $47.8 billion a month earlier, Bank Rossii
said.
For breaking news and commentary on financial markets
and gold, follow us on Twitter.
NEWS
Gold stalls below $1,600/oz;
EU summit eyed - Reuters
China trumps India to lead oriental gold rush
– The Irish Times
Facebook Tumbles Below IPO Price On Second Day Of
Trading - Bloomberg
U.S. lets China bypass
Wall Street for Treasury orders - Reuters
JP Morgan traders’ losses double to £4.4
billion –London Evening Standard
COMMENTARY
Commentary: Is a central bank buying? - MarketWatch
Customer Shocked “Allocated” Gold Not in
Swiss Bank – King World News
Arensberg: Trading data indicates bottom for monetary metals
– Got Gold Report
How JPMorgan Is Like Enron -
Bloomberg
Mark
O’Byrne
Goldcore
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