Today’s AM fix was USD 1,696.00, EUR 1,337.75,
and GBP 1,062.06 per ounce.
Yesterday’s AM fix was USD 1,708.50, EUR 1,355.09and GBP 1,074.53 per
Cross Currency Table – (Bloomberg)
Gold climbed $6.70 or 0.4% in New York yesterday and closed at $1,700.30.
Gold in euro’s also rose to near record highs prior to falls soon after
the ECB interest rate and bond buying announcement.
Silver outperformed once again and surged to $32.987
and then dropped to $32.346 in early New York trade but then it recovered and
finished up 1.24%.
XAU/CHF Currency – (Bloomberg)
Gold is lower in all major currencies today except the Swiss franc which has
come under pressure on speculation the SNB will lift their completely
unsustainable peg to the euro.
Gold rose in anticipation of the ECB embarking on
another money printing exercise with a potentially unlimited bond-buying programme. There was then an element of ‘buy on the
rumour and sell on the news’ as gold then saw
slight falls on the well-flagged announcement.
Markets rallied around Mario Draghi’s
‘bazooka’ that was able to silence the Bundesbank's
Jens Weidmann and force his latest money printing
exercise through. The can has been kicked down the road and the euro will
survive a bit longer.
At least until the next sovereign debt crisis develops
– possibly as soon as next week, on September 12th, when the German
Constitutional Court delivers their verdict regarding the 500 billion euro
European Stability Mechanism (ESM). The court is reported to be divided in
XAU/EUR Currency – (Bloomberg)
Banker ‘Super Mario’ won this battle but the Bundesbank
and the will of the German people may ultimately win the war.
Investors will watch the US nonfarm payrolls (1230 GMT)
number as a clue as to whether the US Fed will launch QE3 at their policy
meeting in September.
South Africa's platinum sector is still in discord as
the AMCU union refused to sign a "peace deal" with Lonmin, stifling government-backed efforts to open pay
talks and end a 4 week work stoppage that resulted in multiple deaths.
G21 Gold Price – (Bloomberg)
Gold ETF’s hit a record for the third straight day. The amount
increased 1.3 metric tons, or 0.1 percent, to 2,471.97 tons, data tracked by
Gold imports by China from Hong Kong rose in July as
Chinese people renewed their buying of gold to hedge against financial
market’s turmoil and weaker currencies with increasing concerns about
the Chinese economy and stock and property markets.
Mainland China bought 75,842 kilograms (75.84 metric
tons) of gold in July, including scrap and coins, almost double the 38,143
kilograms a year earlier, according to export data from the Census and
Statistics Department of the Hong Kong government which was reported by
It was the first rise in imports after three months of
slightly lower imports. Shipments were a record 103,644.5 kilograms in April,
according to the department. China doesn’t publish such data.
Gold shipments from Hong Kong to China surged to
458,628 kilograms (458.628 metric tonnes) in the
first seven months of 2012 from 103,090 kilograms (103.09 metric tonnes) in 2011.
Exports of gold to Hong Kong from China were 30,038
kilograms in July, according to a separate Statistics Department statement,
up from 27,507.5 kilograms in June.
XAU/GBP Currency – (Bloomberg)
For the week, the precious metals look set to again outperform fiat
currencies with all four precious metals higher against the dollar (see G10
and Precious Metals Weekly Returns).
Gold is flat in dollars, slightly lower in euro and
pound terms and slightly higher in Japanese Yen, Norwegian Krone and Swiss
franc terms for the week.
All in all it was a week of consolidation for gold and
further gains for the other precious metals.
G10 and Precious Metals Weekly Returns
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