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Gold’s London AM fix this morning was USD
1,627.00, GBP 1,051.91, and EUR 1,271.49 per ounce.
Yesterday's AM fix was USD 1,618.00, GBP 1,047.38, and
EUR 1,266.54 per ounce.
 
Cross Currency Table
Gold has risen for the first time in three days. Asian
stocks and the euro also gained today before German Chancellor Angela
Merkel meets with the International Monetary Fund’s, Christine Lagarde in Berlin, a day after Merkel and French
President Nicolas Sarkozy met to try minimize the Greek and Eurozone
debt debacle.
Across the pond the USA's debt continues to rise above
the 100% mark. That means the good and services
of the US economy ($15.17 trillion) is equal to the entire debt
of the country. Analysts project the economy would have to grow at
least 6% a year to just stay afloat. Among advanced economies, only
Greece, Iceland, Ireland, Italy, Japan and Portugal have debts larger
than their economies. Greece, Ireland, Portugal and Italy are at the
root of the European debt crisis. The first three needed bailouts from
European central banks and Italy's finances are now monitored by the
International Monetary Fund.
Gold Spot $/oz - 5 days
Today the Troika (officials from the IMF, ECB &
European Commision) return
to Ireland for its quarterly review. Over the next ten days they will
determine if Ireland is implementing its bailout programme properly
but there are already calls for a second 'bailout'. Eurozone bond
auctions will show whether investors are willing to put more money into
the debt ridden European nations of Spain and Italy on Thursday and
Friday respectively.
Demand for gold bullion continues to be robust in the
EU due to concerns about the euro. In Asia, demand has not risen
significantly yet but is expected to in the coming days in the run up to
Chinese New Year.
Gold Spot $/oz - 1 year
Goldman Sachs Group Inc. and Morgan Stanley yesterday
reiterated their pick of gold as a favored commodity this year, as
investors seek to protect their portfolios against the unrest in
financial markets. Edel Tully, analyst from
UBS predicts gold will reach $2,500/oz in 2012
and will average $2,050/oz - 26% above the
current price.
Turmoil within financial markets continues to pave the
way for gold to shine in 2012. Gold remains key
for diversification in portfolio management.
For breaking news and commentary on financial markets
and gold, follow us on Twitter.
NEWS
(Reuters)
Gold firms; euro zone concerns remain
(BusinessWeek)
Gold Advances for First Day in Three on Europe
Crisis Optimism
(Bloomberg)
Gold Could Hit $1,940 an Ounce in ’12: Goldman
(Der Spiegel)
Fearful Investors Stash Money in Luxury Goods
(Reuters)
India allows more banks to import gold, silver
(USA Today)
U.S. debt is now equal to economy
COMMENTARY
(Infographic)
Infographic: $8.5 Trillion Bullion vs. $750 Trillion
Derivatives
(KingWorldNews)
James Turk - There is a War Going on in the Gold
Market
(Wall Street Journal)
Gold Tipped to Keep on Shining
(Minyanville)
Precious Metals Sector Sees Major Bottom
(Foreign Policy Journal)
The Dismal Economic Outlook For The New Year
(MarketWatch)
Investors should root for the gold bugs
Mark
O’Byrne
Goldcore
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