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Today’s AM fix was USD 1,664.25, EUR 1,325.04 and GBP 1,051.66 per
ounce.
Yesterday’s AM fix was USD 1,663.50, EUR 1,325.18 and GBP 1,053.52 per
ounce.
Silver is trading at $30.79/oz, €24.62/oz and £19.54/oz. Platinum is trading at $1,519.10/oz, palladium at $630.80/oz and
rhodium at $1,025/oz.
Gold edged up $3.30 or 0.2% in New York yesterday and closed at
$1,667.20. Silver slipped in Asia then hit a high of $30.985 in New York and
finished up 0.59%.
Gold is hovering near its highest price level in four months due to safe
haven demand on concerns about global economic growth and the unresolved euro
debt crisis.
The possibility of Ben Bernanke and Mario Draghi
announcing further money printing and monetary easing is also supporting
gold. The US Fed chairman speaks this Friday and may or may not choose Friday
to announce QE3. However with a Fed meeting set for September, it is unclear
when further stimulus measures will be announced.
XAU/EUR Exchange Rate – (Bloomberg)
Should Bernanke fail to announce further QE Friday then we would expect
sharp falls in stock markets and gold could again suffer some short term weakness.
Zero level interest rates and a QE3 announcement will be extremely
bullish for the yellow metal.
Monday’s figures showing US consumer confidence fell in August to
its lowest in 9 months was positive for gold as it shows that the US economy
remains in bad shape and is deteriorating increasing the likelihood of the
current policy response of choice – money printing.
XAU/EUR Exchange Rate – (Bloomberg)
The technical picture for Euro gold looks near perfect now.
Gold has been trending higher since May. The long term charts show a
series of higher lows and higher highs and even in the correction of recent
months there have been a series of higher lows and gold gradually
consolidated between €1,200 and €1,400/oz.
Gold is now comfortably above the 50, 100 and 200 day moving averages.
In the last four years, there have been 3 periods of correction and
consolidation which have lasted 12 to 13 months (see boxes in first chart)
and we appear to be coming to the end of another such period.
Break outs from such consolidations often lead to sharp moves higher and
thus new record highs above €1,359/oz and
possibly over €1,600/oz should be seen before
the end of 2012.
The fundamental back drop of the unresolved Eurozone debt crisis , deep
divisions in the ECB and a high degree of uncertainty regarding the euros
long term future strongly suggest that the euro will continue to fall against
gold in the coming months.
Further confirmation of robust demand for gold is seen in figures showing
that exchange-traded products backed by the gold expanded to a record. Smart
money from Paulson to Soros to PIMCO continues to diversify into gold.
Gold ETFs holdings have now surpassed Italy to become the world’s
third-largest gold holdings when compared with national gold reserves.
Investors now own 78.99 million ounces in ETPs, exceeding Italy’s
78.83 million ounces, according to data compiled by Bloomberg and the
International Monetary Fund. Only the USA, and
Germany hold more. ETP assets rose 4.3 percent this year
The gold ETF holdings and national gold reserves remain tiny when
compared to the massive debts of most western nations and the massive foreign
exchange reserves of many creditor nations.
For breaking news and commentary on financial markets and gold, follow us
on Twitter.
Cross Currency Table – (Bloomberg)
NEWSWIRE
(Bloomberg)
-- Capital Economics Raises Year-End Platinum Forecast to $1,400
Capital Economics Ltd. raised its forecast for platinum prices for the
end of this year to $1,400 an ounce, from a previous estimate of $1,350.
Prices will be at $1,500 by the end of 2013, up from $1,400 previously
forecast, the company said in a report e-mailed today.
(Bloomberg) -- Platinum is set to retreat 2.4 percent
in the short term before resuming an upward trend in the medium term, according to a technical analysis by
JSC Corp.
The precious metal surged to the highest level in more than three months
amid labor unrest in South Africa, the world’s largest producer.
Platinum dropped to its 200-day moving average after climbing above the line on
Aug. 22, signaling the metal is in a short-term correction phase, said Takaki Shigemoto, an analyst at
the Tokyo-based research company.
“The metal is poised to fall further to around $1,483, or the
middle between its 50-day and 150-day moving averages,” he said today,
without giving a timeframe. “That would give investors a good chance to
buy as the market is still in a medium-term upward trend.”
Platinum jumped above the cloud on the Ichimoku
chart on Aug. 20, indicating the metal entered an upward trend and may return
to this year’s peak of $1,737.25 reached in February, he said. The
chart analyzes midpoints of historic highs and lows, or so-called resistance
and support levels, with a breakout from above or below the cloud pointing to
a trend. The metal closed at $1,518.75 yesterday.
About one-fifth of global production capacity was idled this month after
police shot dead 34 protesters at Lonmin Plc’s Marikana operation
on Aug. 16 and 10 people died in fighting during the strike by rock drillers
in the worst mine violence in South Africa since apartheid ended. Before the
unrest, platinum had tumbled 21 percent from a year earlier as demand slowed
for use in pollution-control devices in vehicles and jewelry.
In technical analysis, investors and analysts study charts of trading
patterns and prices to predict changes in a security, commodity, currency or
index.
NEWS
Gold holds near 4-1/2 month high, focus on Fed
- Reuters
Gold rises on stimulus hopes; vulnerable if Fed
disappoints - Reuters
Gold ends lower, breaks winning streak
– Market Watch
Republicans Embrace Gold to Hedge Non-Existent Inflation - Bloomberg
COMMENTARY
Current Monetary System Is Breaking Down
– Market Watch
$16,OOO,OOO,OOO,OOOBAMA!
– Zero Hedge
Top 3 Rules to Understand About Gold & Silver Price
Behavior - GoldSeek
Embry - Gold, Silver, A Collapsing Global Economy &
Panic – King World News
Video: COMEX large trader positioning for gold and silver
futures – Got Gold Report
Mark
O’Byrne
Goldcore
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