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Today's AM fix was USD 1,616.50, EUR 1,317.87,
and GBP 1,029.75 per ounce.
Friday’s AM fix was USD 1,618.75, EUR 1,321.43 and GBP 1,031.51 per
ounce.
Silver is trading at $27.66/oz,
€22.65/oz and £17.68/oz. Platinum is
trading at $1,409.50/oz, palladium at $571.15/oz and rhodium at $1,125/oz.
Gold climbed $7.80 or 0.48% in New York on Friday
and closed at $1,623.40/oz. Silver rose to a high of $27.839, edged off a few
times, and ended with a gain of 0.98%.
US GDP results were 1.5%, which beat the expected
1.2% for the second quarter. This hurt short term outlook that the US Fed would
embark on more QE after their meeting this week. However, it still highlights
that US GDP slowed sharply from Q1 (2%) and Q4 in 2011 (4.1%). Gold hit a
high of $1,628.60/oz ahead of the report.
This week’s US data: Tuesday - Personal
Income and Spending, Core PCE prices, the Employment Cost Index, the Case-Shiller 20-city Index, Chicago PMI, & Consumer
Confidence. Wednesday - ADP Employment, the ISM Index, Construction Spending
and FOMC Rate Decision. Thursday - Initial Jobless Claims and Factory Orders.
Friday - July’s jobs data and ISM Services.
Cross Currency Table – (Bloomberg)
The euro is under pressure today ahead of the
Eurozone business sentiment data (results -0900 GMT) which is expected to
show further weakness in July. Ahead of the Fed meeting, investors will
keenly watch the meeting between Mario Draghi, the
ECB President and Timothy Geithner, the US Treasury Secretary, scheduled
today in Frankfurt. Geithner will first meet with German Finance minister
Wolfgang Schaeuble on the North Sea island of Sylt, where Schaeuble is on
holiday.
Gold held steady above $1,620/oz
on Monday, as investors wait for the central banks from Europe and the US to
give definite signs on their plans for more QE.
QE3 would be bullish for gold and increase the
inflation outlook which would benefit gold as a hedge against the rising
prices.
The public is now interested in the yellow metal
again, with investors adding to their physical positions. Market watchers
will take their clues from the data out this week.
More investors are trading euro gold than ever
before and using euro gold as the barometer of internal health of the gold
market right now, says analyst Edel Tully of UBS.
Euro gold is up 9% this year versus US dollar gold's +3% performance.
The markets await the Fed’s move. Certainly
some form of QE3 is inevitable whether it is announced this week or at the
next FOMC meeting scheduled in early September.
Gold Prices/Rates/Fixes /Volumes – (Bloomberg)
The US gold futures contract for August delivery
inched up 0.2% to $1,620.70/oz.
Spot gold prices have moved between $1,530/oz - $1,640/oz over the past
two months.
The European Central Bank has its policy meeting
on Thursday and after Mario Draghi’s pledge
to do everything to protect the Eurozone it has fuelled expectations of more
policy action.
Gold ETF shares have been contracting. SPDR
shares have been decreasing for a month and fell to 1,248.606 tonnes on Friday, its lowest level since the beginning of
November.
In Asia, Vietnam looks set to tighten their gold
legislation. Vietnamese and foreigners may soon be banned from taking gold
bullion out of the country, and possibly even raw gold like nuggets and gold
dust. Jewellery weighing more than 300g would have
to be declared with customs and taxed.
Permits to remove gold would require 15 days for
processing.
Vu Ngoc Lan, deputy
director of the SBV's Legislation Department, said the circular (only a
draft) will strengthen the management of gold bullion and raw gold to keep
the market stable.
For breaking news and commentary on financial markets and gold, follow us
on Twitter.
NEWS
Gold hovers around $1,620 per ounce, central bank
meetings eyed - Reuters
Gold futures gain as stimulus hopes stir
- MarketWatch
Precious metals close higher on Comex
– Sky News
At least three banks seen central to Libor rigging
– Reuters
COMMENTARY
An Absolutely Stunning Development In The Silver
Market – King World News
Schäuble view on eurozone at odds
with US – The Financial Times
Weak Economy Heads Lower – Wall
Street Journal
Fed may announce QE3, but not in August
– FX Street
Mark
O’Byrne
Goldcore
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