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Today's AM fix was USD 1,595.00, EUR 1,303.53, and GBP
1,024.74 per ounce.
Yesterday’s AM fix was USD 1,604.50, EUR 1,305.53and GBP 1,031.90 per
ounce.
Silver is trading at $27.32/oz,
€22.37/oz and £17.61/oz. Platinum is
trading at $1,402.20/oz, palladium at $573.30/oz and rhodium at $1,100/oz.
Gold dropped $10.50 or 0.66% in New York yesterday and
closed at $1,588.70/oz. Silver was down to a low of $26.97 and finished with
a loss of 0.91%.
Cross Currency Table – (Bloomberg)
Gold traded sideways on Friday, hovering after its 4
days of losses when the European Central Bank fell short of any immediate
bold action to help the Eurozone debt crisis. Draghi’s
comment "to do anything it takes” was a clear example of over
promising and under delivering. Gold has lost about $40 since it peaked
during the initial euphoria over Draghi’s
pledge.
Regarding the ECB implementing swift market
intervention, the bank said it postponed a decision “for a few
weeks”. (Weidmann won Round 1)
The Bank of England also left rates unchanged
yesterday.
Investors are cautious ahead of today’s US jobs
report at 1230 GMT.
Nonfarm Payrolls are expected at 100,000–115,000
up from 80,000 in June, while the unemployment rate is expected at 8.2%. If
the figures shatter expectations on the upside this would be negative for
gold prices. A disappointment in nonfarm payrolls data would show that job
creation cannot sustain the unemployment rate and could help gold break
through the $1,600/oz resistance level.
Gold Prices/Rates/Fixes /Volumes – (Bloomberg)
While most market players are enjoying summer holidays,
many investors are waiting on the sidelines in cash.
A US bill sponsored by Congressman Ron Paul would
require the Federal Reserve to be subjected to an audit of monetary policy,
including deliberations over changes to the benchmark interest rate.
US Fed chairman, Ben Bernanke, claimed it would diminish
the Fed’s independence and subject policy making to political pressure.
The bill, passed US Congress 327-98, and needs Senate
approval plus President Barack Obama’s signature before becoming law.
Christine Lagarde, Head of
the IMF, cautioned policy makers on both sides of the pond that they
“should continue to be in crisis management mode” to deal with
both the euro-zone debt crisis and the gaping US fiscal cliff.
And, she added, there are “serious questions
about the US economic future” if policymakers fail to avert a fiscal
cliff before January, at which point government spending will drop and taxes
will rise sharply.”
The global economic downturn is not going away until
some drastic steps in fiscal policy are undertaken.
For breaking
news and commentary on financial markets and gold, follow us on Twitter.
NEWS
Draghi kills hope of instant action – The Financial Times
Gold flat after
four-day drop; U.S. jobs in focus – Reuters
Gold ends under
$1,600 as Draghi offers no plan - MarketWatch
How an Act of
Congress Killed Off the U.S. Gold Market - Bloomberg
COMMENTARY
IMF: US plunge
from fiscal cliff would hit global economy hard – The Guardian
What Happens to Greece's Gold When They Exit the
Eurozone – Market Oracle
Fed Audit Bill Opposed By Bernanke Approved By U.S.
House - Bloomberg
What's in your
vault? Uncle Sam audits its stash of gold at the New York Fed – The Los Angeles Times
Mark
O’Byrne
Goldcore
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