Today’s AM fix was USD
1,723.50, EUR 1,351.45, and GBP 1,087.66 per ounce.
Yesterday’s AM fix was USD 1,724.50, EUR 1,353.08, and GBP 1,085.21 per
Silver is trading at $32.53/oz, €25.60/oz and
£20.52/oz. Platinum is trading at $1,573.50/oz,
palladium at $627.75/oz and rhodium at $1,100/oz.
Gold was relatively
unchanged up $0.50 or 0.03% in New York yesterday and closed at $1,725.00.
Silver fell to a low of $32.36 and recovered to $32.908, but slipped downward
and finished with a gain of 0.65%.
XAU/USD Currency 1 Year – (Bloomberg)
Gold edged down on Thursday,
but the looming US fiscal cliff, Eurozone debt problems and rising Middle
East tensions continue to enhance the yellow metal’s safe haven appeal.
Yesterday, Israel launched
its most ferocious assault on Gaza in four years after persistent Palestinian
rocket fire, hitting at least 20 targets in aerial attacks and killing the
top military commander of Hamas. The U.N. Security Council held a
private(closed door) emergency meeting on Wednesday evening to discuss
Israeli strikes against the Gaza Strip, since Israel threatened a wider
offensive. Brent oil prices were holding above $109 per barrel.
Minutes released from the US
Fed’s October 24th meeting showed that “a number of participants
indicated that additional asset purchases would likely be appropriate next
year after the conclusion of the maturity-extension program.”
Today, the US Weekly jobless
claims report is published at 1330 GMT.
The London Bullion Metal
Association said that it expects gold bullion to reach $1,843/oz by September 2013, and forecast silver to reach
The World Gold Council
issued a report “Global gold demand reflects challenging global
economic climate: ETFs up 56% and India up 9% in Q3 2012” which showed
that global gold demand fell 11% in the three months to September from record
levels seen during the same period last year, which was curbed by a sluggish
Chinese economy and stronger Indian demand limited the drop.
In Q3 2012, gold investment
demand (total bar and coin demand plus ETFs and similar products) was 429.9 tonnes down 16% from Q3 2011. Although the year-on-year
snapshot for investment demand suggests falling interest, this is not the
case. Rather, it highlights the strong demand seen in Q3 2011.
Interestingly, demand for
ETFs rose 56% to 136t, compared to Q3 2011. Demand for gold-backed ETFs in Q3
grew significantly in the quarter partially due to institutions responding to
the additional QE measures in the US and Europe.
XAU/EUR Currency 1 Year – (Bloomberg)
At 87 tonnes,
Q3 2012 investment demand for gold surged from 78 tonnes
in Q2, a rise of 12%. Examining this over the longer term, Q3 represents the
first quarter-on-quarter increase in Indian investment demand since Q2 2011.
This ramp up in Indian
demand has been driven, in part, by investors moving into the medals and
imitation coin market, which was up 59% and the build-up to the wedding and
festival season. The stabilization of the market, an increase in the retail
outlet network and a gradual recovery of the rupee has helped cement this
demand to result in India being the strongest performing market overall in
In China, investment demand
dropped between Q32011 and Q32012 and is down 8% year-on-year, due to dampened
sentiment in response to the on-going regional economic slowdown. Compared to
Q3 2011, investment demand in China is down 16%; however, current demand does
remain well above the longer term average wrote The World Gold Council.
Despite the impact of wider
economic events, Chinese consumer sentiment towards gold has not waned and it
expects demand for gold in the country will increase.
In Q3 2012, jewellery demand increased was down 2%
from Q3 2011figures to 448.8 tonnes. The ongoing slow down in China – the second largest jewellery market – has impacted global demand in
the sector across 2012 to date.
Jewellery demand in China fell by 6%
to 123.8tonnes in Q3 2012 due to the ongoing economic growth slowdown and the
resulting dampened sentiment. Despite this, however, as consumers adjust to
the change in Chinese trajectory we expect that demand will notably increase.
Indian consumers resumed
purchasing gold jewellery as gold prices stabilised prior to the key wedding and festival seasons.
Demand for gold jewellery increased 7% to 136.1 tonnes in Q3 2012 as the rupee recovered and consumers
adapted to pricing levels.
During Q3 2012, gold demand in the technology sector fell by 6% year-on-year
to 108.0 tonnes, equivalent to a value of $5.8
Not all areas of the
technology field suffered from declines during the quarter, however, with the
use of gold in electronics continuing the incremental growth seen in 2012 so
far. Use of gold in electric goods such as tablets, mobile phones, fuel cells
and medical diagnostic equipment increased, helping to sustain overall demand
figures. We expect this trend to continue, as evidenced by the increasing
number of new technology patents involving gold components.
Stephen Flood, GoldCore CEO commented "The World Gold
Council’s Quarterly Gold Demand Trends report provides interesting
reading. Global Investor demand for gold has not at all wilted; investors
still feel that inflation pressures are significantly to the upside.
Quantitative Easing or Money Printing may afford short term relief to
contracting economies but in the long run, and throughout history, it leads
to massive economic dislocations. Gold remains the ultimate safe haven asset
for investors who seek a reprieve from these uncertain times.”
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Cross Currency Table – (Bloomberg)