Gold’s London AM fix this morning was USD
1,662.00, GBP 1,080.34, and EUR 1,299.76 per ounce.
Yesterday's AM fix was USD 1,642.00, GBP 1,070.27, and
EUR 1,281.71 per ounce.
Cross Currency Table – Bloomberg
Spot gold has consolidated gains above the 200 day
moving average at $1,640/oz. Gold has climbed 1.5% to a one month high, due
to concerns about the Eurozone sovereign debt crisis. Risk appetite has
returned lifting markets across the board, after China announced better than
expected economic growth in the last quarter of 2011.
Thomson Reuters GFMS annual gold survey released today
shows that global investment increased 20% last year to $80 billion, leading
to the nominal high last September of $1,920/oz. This is primarily attributed
to the physical buying of bullion.
Gold may climb to a new nominal record above $2,000/oz by early next year as concern about currencies and low
interest rates encourage investors to seek a protection of wealth, Thomson
Reuters GFMS said.
Gold Spot $/oz - Daily
1/17/11-1/17/12 - Bloomberg
Gold coin purchases gained 13% last year and will
increase 2.7% in the first half.
Purchases of gold bars increased by 36% to nearly 2,000
(1,194) metric tonnes, concentrated in China,
Germany, Switzerland and Austria.
East Asia demand for gold bars rose 53% to 456 metric tonnes.
India rose 9% to 297 metric tonnes
and western markets demand for gold bars rose 41% to 335 metric tonnes.
Central banks increased net purchases by a massive
fivefold to 430 tons last year, and may buy another 190 tons in the first
half, GFMS said.
Combined official holdings stand at 30,788.9 tons, data
from the London-based World Gold Council show.
“Attitudes among central banks haven’t
really changed,” Thomson Reuters GFMS annual survey said.
“There’s still that desire to come into the gold market to
diversify some of the assets away from foreign exchange and to boost gold
holdings.”
The Thomson Reuters GFMS annual gold survey also
predicts that gold will struggle in the first half of the year, increasing in
the later half towards $2,000.
It also says the gold bull market is losing steam and
predicts an end to the run as economies recover next year and interest rates
begin to rise.
These are particularly large assumptions which are
unlikely to come to pass. Indeed, rising interest rates will likely be
bullish for gold and bearish for risk assets as they were in the
1970’s. It is only towards the end of the interest rate tightening
cycle when savers are rewarded with positive real interest rates that
gold’s bull market may be threatened – as was seen in late 1979
and 1980.
Separately, Pricewaterhouse
Coopers surveyed mining companies and found that 80% of executives expect
gold to increase this year to $2,000/oz. Central bank purchases have
increased in the last few years and are expected to continue.
The Eurozone debt crisis is certain to continue for the
foreseeable future – as no political, economic or monetary magic wand
will be found to make it end.
The Thomson Reuters GFMS annual gold survey shows how
safe haven demand for gold bullion increased again in 2011 confirming gold is
still a safe haven in these uncertain and volatile financial times.
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NEWS
(Reuters)
Gold rallies 1.5 pct as
China data lifts markets
(MarketWatch)
Gold tops $1650 as dollar slides on China data
(BusinessWeek)
Gold to Gain, Copper ‘Favored’ in 2012,
Morgan Stanley Says
(WallStreetJournal)
Iran Cracks Down on Dollar Trades
(YourHoustonNews)
BBB warns: Don’t rush to sell your gold
(WallStreetJournal)
Banks Divided On Gold Price Outlook In 2012
(Bloomberg)
Gold to Reach $2,000 by Next Year as Investment
Rises, GFMS Says
(The Guardian)
Gold price 'to hit $2,000 an ounce'
COMMENTARY
(CommodityOnline)
‘Gold and silver to regain shine in
2012’
(ForbesIndia)
Gold still has some shine left in it
(24HGold)
Gold: The Studebaker Effect
(InvestorPlace)
Gold Bugs, Stop Laughing
(KingWorldNews)
Rickards - CurrencyWars, Gold
& Inflation Worse than 1970s
(GATA)
Iranian
currency and economy collapsing under tighter U.S. trade sanctions
Mark
O’Byrne
Goldcore
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