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Gold’s London AM fix this morning was USD
1,643.75, EUR 1,255.92, and GBP 1,037.72 per ounce. Thursday's AM fix was USD
1,622.50, EUR 1,239.21 and GBP 1,022.82 per ounce.
Silver is trading at $31.58/oz,
€24.15/oz and £19.95/oz. Platinum is
trading at $1,605.00/oz, palladium at $636.20/oz and rhodium at $1,350/oz.
Cross Currency Table – (Bloomberg)
Gold rose $10.60 or 0.65% in New York yesterday and
closed at $1,641.30/oz. Gold rose in Asian trading prior to falls as Europe
opened after the Easter break.
Gold climbed to a one week high above $1,650/oz on Tuesday, as hopes of further QE by the Reserve
boosted sentiment.
Gold 1 Year Price Chart – (Bloomberg)
Gold appears to have risen on safe haven buying due to
concern about global economic growth after China’s import growth missed
forecasts in March.
The poor US jobs number has also led to an increased
expectation of further monetary easing from the Federal Reserve and this may
be leading to inflation hedging purchases.
Physical demand has been poor in western and Asian
markets in recent weeks but the end of the 21 day Indian jeweller
strike has led to renewed demand in India and pent up Indian demand could
push prices higher this week.
Continuing zero percent interest policies in major
developed economies and negative real interest rates remain the primary
driver of the gold market.
The Bank of Japan (BOJ) confirmed today that it is
keeping its key interest rate unchanged at between 0% and 0.1%. While it will
refrain from fresh monetary easing steps, it will continue with ultra accommodative monetary policies.
The BOJ warned that the overall global economy has not
stopped the slowdown trend and uncertainties are still lying ahead. The
central bank listed factors including the developments of the European
sovereign debt crisis and international commodity prices as potential risks
to the economy's recovery.
Continuing competitive currency devaluations and global
currency debasement has seen gold bullion prices rise 5% year to date, while
platinum and silver have risen 16% and 15% year to date (in dollar terms).
The yen has fallen by nearly 10% against gold year to
date and by 13% against silver.
Gold in Japanese Yen – 1971 to Today
Investors will seek further cues from various Fed
officials this week on the health of the US economy and clarity on the
central bank's attitude to monetary easing. No matter what
‘signals’ are given, it seems certain that debt monetisation, financial repression and currency
debasement is set to continue until the consequences are abundantly clear for
all to see.
For breaking news and commentary on financial markets
and gold, follow us on Twitter.
OTHER NEWS
(Bloomberg)
-- Gold Weakness Provides ‘Good Entry Point,’ Morgan Stanley Says
Gold’s weakness, driven by lower expectations of
further stimulus by the Federal Reserve, provides a “good entry
point” for investors, according to Morgan Stanley.
“Negative real interest rates, the prospect of
further unconventional monetary policy in the U.S. and Europe to confront
uncertainties on the growth outlook, and heightened political tensions in the
Middle East are all expected to underpin strong investment demand,”
analysts including Hussein Allidina wrote in a
report today.
(Bloomberg) -- Platinum Has ‘Good Physical
Support’ in China, Macquarie Says
Platinum
has “good physical support” in China as trading on the Shanghai
Gold Exchange signals more jewelry demand, Macquarie Group Ltd. said.
The fourth-highest daily sales since 2009 on the
exchange after holidays in China may also signal more demand for platinum in
industrial applications, Macquarie said in a report dated April 10.
“Stronger Chinese buying activity is bullish for
platinum at current levels,” Hayden Atkins, an analyst at Macquarie,
said in the report. Platinum is used in jewelry and industrial applications
led by catalytic converters to remove harmful exhausts from cars. Yesterday
marked the return of China following the annual Qingming
Festival.
NEWS
Gold hits one-week high on easing hope, physicals
- Reuters
European Stocks Fall, Yen Gains on BOJ, China Trade
Data - Bloomberg
Gold business is back with a bang
- India Today
China to maintain golden focus - The
Australian
COMMENTARY
Gold Crash on Fed Tightening and Euro Salvation
Looks Premature - The Telegraph
Gold’s sentiment foundation bullish
- MarketWatch
Markets at the Start of a More Significant Downturn:
Marc Faber - CNBC
The Titanic and Our 'Unsinkable' Financial System
- ZeroHedge
Peak Civilization: MIT Predicts Global Economic
Collapse By 2030 - Smithsonian Magazine
China doomsayer sees crash coming - MarketWatch
Mark
O’Byrne
Goldcore
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