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Gold is trading at USD 1,778, EUR 1,300.20, GBP
1,114.90, CHF 1,606.10, JPY 136,750 and CNY per ounce.
Gold’s London AM fix this morning was USD
1,780.50, GBP 1,115.29, and EUR 1,299.06 per ounce.
Friday's AM fix was USD 1,764.00, GBP 1,109.02, and EUR
1,294.39 per ounce.
 
Cross Currency Table
Gold is marginally lower today on hopes that changes in
the political leadership in Italy and Greece might lead to a resolution of
the eurozone’s debt crisis and prevent
contagion and the breakup of the monetary union. This has seen risk appetite
return with most Asian equity indices posting gains.
European indices are more subdued and may be taking a
more realistic view regarding the political changes in Greece and
Italy.
The debt crisis is of a scale that simply changing who
is in power and installing unelected technocrats will not solve the
crisis.
There is again a real sense of rearranging the deck
chairs on the Eurozone Titanic and the root cause of the crisis – too
much debt in the banking and financial sector and too much private debt has
yet to be confronted.
Gold’s positive momentum continued last week with
gold recording a 1.8% gain. Gold has now risen three weeks in a row and looks
set to record a second monthly gain after October’s monthly gain.
Gold remains up 25% year to date in US dollars and (22%
in Euros and British pounds) and thus the recent correction and consolidation
was a healthy development that took the short term froth out of the market
and has now left the gold market with stronger foundations.
Physical demand from Asia continues but for now is
below the very high levels seen in recent weeks.
Central bank demand continues. Overnight, the Russian
central bank announced their intention to buy 100 tonnes
of gold in 2011. Ria Novosti
reports that Russia has acquired over 90 tons of gold since early 2011 and
plans to increase the amount by 100 tons, the Central Bank Deputy Head,
Sergey Shvecov, stated at a finance conference.
Concerns about the euro and Eurozone and the weak
dollar have been cited as reasons for Russia’s continuing FX reserves
diversification.
Options traders remain bullish with most open interest
for November centering on $2000 calls, $3000 calls.
In options today, the largest change in open interest
was seen in $1920 calls for the Nov 22 expiry, where OI rose
643 lots to 1,389 lots. $1900 calls rose 526 lots to
9,242 lots.
Gold ETF data shows continuing safe haven flows and
diversification into gold.
Global holdings of gold rose last week, by nearly 897K oz, their largest weekly rise since the week ending Aug 5
2011, when holdings rose by a net 1.089M oz,
according to Reuters.
Total gold ETF holdings stand at around 68.854M oz, up a full 1.749M oz in the
last month. November is shaping up to show the largest monthly inflow since
July. So far this month, holdings have risen by 947K oz.
Goldman Sachs today reaffirmed that it remains
overweight in commodities. On gold it says it will roll over its Dec 11 long
to Dec 12.
"We expect gold prices to continue to climb in
2011 and 2012 given the current low level of US real interest rates, and as a
result recommend a long gold position."
Credit Suisse has said, "that gold may climb
over $1,800 in the coming days with negative real interest rates as the
‘key driver’."
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SILVER
Silver is trading at $34.30/oz,
€25.12/oz and £21.53/oz
PLATINUM GROUP METALS
Platinum is trading at $1,640.70/oz, palladium at
$654/oz and rhodium at $1,525/oz.
NEWS
(Reuters)
Gold steady as Italy, Greece offer hope
(MarketWatch)
Gold futures gain in electronic trading
(Reuters)
Gold edges up after Italy, Greece form governments
(RTE)
Oil up amid fresh fears on Middle East tension
COMMENTARY
(MarketWatch)
Brimelow: Is Gold Headed to $2,200?
(FXStreet)
Where is the ECB Printing Press?
(GoldSeek)
Physical gold to trump ETFs by 500% in 2011 hears
Dubai conference
(Financial Times)
Currency Wars – Jim Rickards
on ‘Currency Wars’
Mark O’Byrne
Goldcore
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