|
Today’s
AM fix was USD 1,742.75, EUR 1,352.23 and GBP 1,081.71 per ounce.
Yesterday’s AM fix was USD 1,731.00, EUR 1,352.77 and GBP 1,081.33 per
ounce.
Silver is trading at $33.94/oz,
€26.39/oz and £21.17/oz. Platinum is
trading at $1,649.00/oz, palladium at $674.70/oz and rhodium at $1,025/oz.
Gold rallied to a 6 month high in dollars after
Germany’s top court ruled that Germany can ratify the €500
billion ESM bailout fund but with strict conditions.
Gold ticked
slightly higher after the German decision – rising from just under
€1,350/oz to €1,354/oz
prior to gradually giving up those gains. Equities have seen tentative gains
but silver is the largest beneficiary so far – having briefly risen
above $34/oz or 1.5%
 
Cross Currency Table – (Bloomberg)
The FCC court
stipulated that a cap of 190 billion euros be set on German liabilities
before ESM ratification, unless parliament decides to back extra funds.
German liabilities are to be capped which is important and means this is not
the bazooka that many market participants were hoping for.
German bunds
and UK gilts (10 year) sold off quite a bit with yields rising sharply to
1.64% and 1.83% respectively. ESM concerns are weighing on bunds and UK
downgrade concerns on gilts.
The
announcement came on the heels of ECB President Jose Manuel Barroso who said that the ECB should take a core role in
supervising all banks within the eurozone.
"The Commission is presenting legislative proposals for a single
European supervisory mechanism. This is a quantum leap - the stepping stone
to a banking union," he said. "The single supervisory mechanism
proposed today will create a reinforced architecture, with a core role for
the European Central Bank.
Barroso has continually talked a good game but action has not
matched the words and many market participants are likely to remain sceptical of his grand announcements.
XAU/EUR Currency – (Bloomberg)
The US
Federal Reserve has its policy meeting set for today and Ben Bernanke’s
speech will be on Thursday.
Diversification
into gold continues as seen in the gradual rise in ETF gold holdings.
This can be
seen in exchange-traded products which have risen to a record for the sixth
straight session. The amount increased 6.9 metric tons, or 0.3 percent, to
2,487.36 tons.
Total Known ETF Holdings of Gold
Mining unrest
in South Africa is deepening with militant senior trade unionists even
talking about expropriation of assets and nationalisation.
Labour unrest sweeping across South Africa's mining sector
hit top world platinum producer Anglo American Platinum on Wednesday, with
striking miners blockading roads leading to shafts belonging to the mining
giant, police said. Workers were unable to clock in yesterday for night shift
due to fear of intimidation and threats.
Shares in
South African gold and platinum mining companies remain under pressure. Many
miners remain on strike and non striking miners are
being intimidated.
XAG/EUR Currency – (Bloomberg)
Gold climbed
$6.50 or 0.38% in New York yesterday and closed at $1,732.10. Silver hit a
high of $33.819 then edged down, but finished with a gain of 0.33%.
For breaking
news and commentary on financial markets and gold, follow us on Twitter.
NEWS
Germany Can Ratify ESM Bailout Fund With Conditions,
Court Rules - Bloomberg
Gold steady before euro zone fund ruling, Fed
meeting - Reuters
Gold Nears Six-Month High Before Fed Meeting;
Platinum Advances - Bloomberg
Gold ticks up ahead of German ruling, Fed
– Market Watch
Gold rises after Moody's U.S. credit warning hits
dollar - Reuters
COMMENTARY
Once U.K. loses triple-A rating, chaos will follow
– Market Watch
South African Miners "Playing Dangerous
Game" As Tensions Rise Again – Zero Hedge
Gold vs Bonds
- GoldSeek
Keiser Report: Blackhole
of Bamboozlement – Max Keiser
Mark
O’Byrne
Goldcore
|