Today's AM fix was USD 1,612.75, EUR 1,307.46, and GBP
1,029.79 per ounce.
Yesterday’s AM fix was USD 1,607.00, EUR 1,298.90 and GBP 1,030.33 per
Silver is trading at $27.93/oz,
€22.79/oz and £17.94/oz. Platinum is
trading at $1,415.75/oz, palladium at $583.80/oz and rhodium at $1,060/oz.
Gold edged up $1.20 or 0.07% in New York yesterday and
closed at $1,612.80/oz. Silver dipped to $27.70 then hit a high of $28.25,
then retreated and finished with loss of 0.32%.
Gold has been up and down insignificantly in Asia
maintaining a price near yesterday’s close in New York and is trading
near $1,612/oz at the open in Europe.
Cross Currency Table – (Bloomberg)
Gold edged up on Thursday after China's CPI slowed to a
30 month low of 1.8% in July, factory output plummeted to a 3 year low and
these clues signal more QE from China in the near future.
China replaced India as the world's top gold consumer
at the end of 2011. China’s gold inflows from Hong Kong increased 6
times for the first 2 quarters of 2012.
India's gold demand has been slow even during the
festival season as rural buyers, who account for 60% of the gold demand from
India, are holding their cash instead of buying the yellow metal. Since a
lack of monsoon rains could damage their crops they are waiting on the
The waiting game is still being played as investors are
waiting for the Kansas City Fed’s annual economic symposium in Jackson
Hole, Wyoming at the end of August.
Gold trading has been sluggish as many traders are
waiting for more signals from central banks, many
are off on holidays or enjoying watching the Olympics.
Gold futures volumes hit the 3rd day below 100,000
contracts, its lowest streak since December 2010. Open interest in gold
futures hit its lowest level (388,254 contracts) since September 2009. When
trading volume is very low, individual trades can have a large impact on
determining gold prices as there are fewer players to accommodate the
institutional order size.
USD Currency Ranked Returns, 12/30/11-08/09/12 –
South African mining output rose by 4.2% in June, the
most in 13 months, and yet South Africa's gold output fell by another 4%.
Further signs that geological constraints and peak gold
production continues to take its toll on South African gold mining output.
Production of non-gold minerals was 5.3% higher,
Statistics South Africa said. The increase in total South African mining
output was aided by a 31% increase in iron-ore production, and a 24% gain in
Production of platinum group metals rose 4.8% in June
– PGMs have the biggest weighting in the index at 27%.
Platinum’s price increase, the first increase in
platinum production in a year may have been due to the nation’s biggest
platinum mine ramping up production after a strike.
Impala Platinum Holdings Ltd., whose
main Rustenburg mine was halted for six weeks at the start of the year by a
battle for control between labor unions, said the operation averaged about 90
percent of capacity in June according to Bloomberg. The strike at the
operation cost Impala, the second-biggest producer of the metal, more than
120,000 ounces of output, it said May 29.
Extremely rare and precious platinum, used in devices
that cut car emissions and to make jewelry, retreated 18% in the last 12
months to $1,409/oz today.
South Africa has the world’s biggest reserves of
the metal – well over 80% and resource nationalism could lead to higher
platinum prices in the coming years.
Platinum is a tiny, tiny market vis-à-vis the
gold market and especially vis-à-vis equity, bond and currency markets
and even a little allocation by international investors to platinum could
result in markedly higher prices.
Dennis Gartman has done
another about turn and is again bullish on gold but nervous about the short
term (see news). We agree with Dennis with regard to being bullish on gold in
the medium and long term and are nervous about one last sell
off prior to a resumption of the secular bull market.
Where we differ from Gartman
is that we do not believe that the majority of investors (and even
speculators) can profit from speculating on short term price movements and
from trading in and out of positions.
Indeed, we believe that the costs to buy and sell and
risk of being out of position when prices are rising means that prudent
investors should adopt a "buy and hold" approach to owning gold and
should own the safety of physical gold coins and bars (1 ounce format is best
for divisibility and liquidity reasons) rather than derivatives, ETFs or
For breaking news and commentary on financial markets
and gold, follow us on Twitter.
GBP Currency Ranked Returns, 12/30/11-08/09/12 –
(Bloomberg) -- HSBC Says PGM Production Cutbacks to Buoy Prices Through
Low platinum-group metals prices are causing production cutbacks, which
should buoy prices this year and next, HSBC Holdings Plc
said in a report e-mailed today.
The bank cut is 2013 platinum forecast to $1,625 an
ounce from a previous estimate of $1,825 and reduced its palladium outlook
for next year to $750 an ounce from $825.
(Bloomberg) -- Gold ETP Holdings Climb 8.2 Metric Tons,
Most Since Feb. 29
holdings in exchange-traded products backed by the metal rose 8.24 metric
tons to 2,411.72 tons, the biggest gain since Feb. 29, data tracked by
(Bloomberg) -- World Food Prices Jump as U.S., Russia
Droughts Spark Crop Rally
prices rose for the first time in four months as droughts damaged crops from
the U.S. to Russia, sparking a record rally in corn and soybeans.
An index of 55 food items tracked by the United
Nations’ Food & Agriculture Organization jumped 6.1 percent to
213.1 points in July from 200.8 points in June, the Rome-based agency
reported on its website today.
EUR Currency Ranked Returns, 12/30/11-08/09/12 –
Gold inches up; investors await policy clarity
Brent stays above $112 ahead of China economic data-
Gartman: Gold Traders at War & Decisive Battle Imminent
Gold Climbs As China’s Inflation Cools,
Boosting Stimulus Hopes - Bloomberg
to Rally Above $1,900 by End 2012: HSBC - CNBC
Could Gold Be Tripped Up by a Coming Deflation?
Gold QE - Financial Times
PIMCO's Gross says cult of equities dying