Gold rose some 1% in US trading yesterday to close at $1,065.30/oz. It then
rallied to over $1,073/oz Asian trading before giving up some of those gains
in European trading this morning. Gold is currently trading at $1,066.00/oz
and in euro and GBP terms, gold is trading at €779/oz and £685/oz
The Dow’s close below 10,000
yesterday will make market participants nervous especially from a technical
perspective. However, world stock markets have not reacted overly negatively
and are mixed this morning.
Concerns about the health of the
global financial system due to the risks of sovereign defaults
internationally (Iceland, Dubai, some eurozone countries, California etc. )
should result in continuing safe haven demand for gold. Especially as
economic data out of the UK and Europe this morning (see news below) shows
that the economic recovery is less than robust. The poor data out of the UK
and Germany illustrates the continuing challenges facing the UK and the
strongest member of the eurozone and may lead to weakening sterling and euro.
With the outlook uncertain for two of the major world currencies,
gold’s inflation hedging and currency diversification credentials may
become increasingly attractive to investors throughout Europe and
Silver range traded between $15.14/oz and $15.28/oz in Asia. Silver is
currently trading at $15.15/oz, €11.05/oz and £9.71/oz.
Platinum is trading at $1,490/oz and palladium is currently trading at
$415/oz. Rhodium is at $2,375/oz.
- Credit rating agency Moody's says it has put Toyota's credit rating on
review for a possible downgrade warning that the auto giant's worldwide
recalls 'may significantly damage' its brand image.
- Britain's goods trade deficit
with the rest of the world unexpectedly widened to its highest in nearly a
year in December, after imports from non-EU countries shot up at their
fastest rate since March 2005. The figures from the Office for National
Statistics also showed that Britain's trade deficit for 2009 as a whole
narrowed for the first year since 1997 after the global recession caused both
imports and exports to fall at their fastest rate in over 50 years.
- German exports fell by 18.4% in
2009, the sharpest drop since 1950, new data showed today, as China
officially overtook the biggest European economy as the top global exporter.
- Fears that Britain may already
be succumbing to a "double-dip" recession materialised as it
emerged that 2010 opened with the worst January for the high street since
comparable records began 15 years ago
O'Byrne is the Managing Director of Goldcore, Ireland's Asset Diversification
and Wealth Preservation Specialist. He is regularly quoted and writes in the
financial media and was awarded Ireland’s prestigious Money Mate and
Investor Magazine Financial Analyst of 2006.
You can contact him by calling : the GoldCore Bullion
Services Team on
(Irl)+353 1 632
(UK)+44 203 086 9200
(US) +1 (302)635 1160