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Today’s
AM fix was USD 1,748.00, EUR 1,331.71, and GBP 1,081.42 per ounce.
Yesterday’s AM fix was USD 1,747.75, EUR 1,333.86 and GBP 1,082.33 per
ounce.
Silver is
trading at $32.96/oz, €25.26/oz and £20.52/oz. Platinum is trading at $1,657.50/oz, palladium at $648.40/oz and
rhodium at $1,200/oz.
Gold inched up
$1.05 or 0.6% in New York yesterday and closed at $1,748.70. Silver climbed
up & down and hit a session high of $33.255 and finished trading with a
gain of 0.61%.
Gold hovered
on Thursday, maintaining gains from the last two days and watching for new
stimulus from a European Union summit after little reaction to news from
China that showed the economy’s seventh quarter of GDP contraction.
The 27 member
states of the EU will meet in Brussels today and tomorrow. The agenda
includes, Greece’s progress in debt talks with creditors, organizing a
common eurozone budget and initial discussions for
the proposed EU banking union.
 
XAU/EUR Currency YTD – (Bloomberg)
The proposed
ECB Bank as a single banking supervisor similar to the US Fed was received
well by markets but is met with resistance from some of the bloc’s
members- the strongest being Germany.
Greece is set
to run out of money by the end of November without the €31.5 billion in
external funding on offer and in the Sunday edition of Greece's Kathimerini newspaper, Greek Prime Minister Antonis Samaras said that he expected to reach a deal
before the summit.
Investors are
still waiting for Spain to seek a formal request for a bailout next month.
China's
economy dropping for its 7th quarter was as expected. However, investors
desire more policy clarity from Beijing with the leadership change next
month, and speculate that further quantitative easing will be announced.
Cross Currency Table – (Bloomberg)
HSBC trimmed
their 2012 gold forecast to $1,700/oz but raised
its 2013 to $1,850 and 2014 to $1,775/oz. The price targets were adjusted
based on the views of the Fed's open-ended commitment to easing until U.S.
labor markets improve, will continue support gold well into 2013.
The World Gold
Council issued a summary on gold’s price performance in various
currencies during the third quarter. The report looks at influences that
monetary policies and central bank actions have on gold.
Gold’s
11.1% USD/oz return in 3Q was in response to
central bank stimulus measures. Volatility decreased and generally correlated
with other assets.
Central banks
announced a continuation of their unconventional monetary policy1 programmes in Q3 which mainly are used to lower borrowing
costs and supporting financial markets.
Financial
assets have responded to central bank policy announcements, but gold's
reaction has been the strongest.
There is a
consensus that these policies drive investment into gold purely due to
inflation-risk impact. The World Gold Council believes that there are not one
but four principal factors that provide further support to the investment
case for gold: Inflation risk, Medium-term tail-risk from imbalances,
Currency debasement and uncertainty, and Low real rates and emerging market
real rate differentials.
To read the
full report on the World Gold Council website click here or access from GoldCore’s Research section.
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