Today’s AM fix was USD 1,663.50, EUR 1,325.18 and
GBP 1,053.52 per ounce.
Yesterday the London Bullion Market was closed for a national holiday.
Friday’s AM fix was USD 1,666.50, EUR 1,329.16 and GBP 1,051.88 per
Silver is trading at $30.88/oz,
€24.70/oz and £19.63/oz. Platinum is
trading at $1,531.50/oz, palladium at $641.50/oz and rhodium at $1,025/oz.
Gold fell $5.90 or 0.35% in New York on Friday and
closed at $1,663.90. Silver climbed to $31.241 then retreated but finished
with a gain of 0.03%.
Cross Currency Table – (Bloomberg)
Gold edged off of its 4 month high as some participants
may have decided to take profits ahead of the Jackson Hole Symposium on
August 31st and September 1st. Market participants expect speeches by
Bernanke to offer clues with regard to further QE or what it will in time be
known as – counterfeiting.
Russia, Turkey, Ukraine and the Kyrgyz Republic have
again expanded their gold reserves.
July saw Russia’s biggest increase since since October and Kazakhstan increased their bullion
reserves for a 12th consecutive month.
Russia’s assets rose about 18.6 metric tons to
936.6 tons last month and Kazakhstan’s climbed 1.4 tons to 103 tons,
data on the International Monetary Fund’s website showed according to
Both countries’ holdings are at the highest level
since at least 1993, the data show.
Turkey, Ukraine and the Kyrgyz Republic expanded
bullion reserves in July, while Guatemala and Mexico reduced them marginally,
according to the IMF data.
IMF World Gold Reserves in Millions Fine Troy Ounces
Ukraine bought 0.2 ton in July, the Kyrgyz Republic
added 0.1 ton and Turkey’s bullion reserves jumped 44.7 tons to 288.9
tons, the data showed. The country’s holdings have increased due to it
accepting gold in its reserve requirements from commercial banks. Guatemala
cut gold holdings by 0.2 ton and Mexico reduced them by 0.1 ton, the data
Gold now accounts for about 9.2% of Russia’s
total reserves and 16% of Kazakhstan’s, according to the World Gold
IMF World Total Reserves Minus Gold in Millions of SDRs
That compares with more than 70% for the U.S. and
Germany, the biggest bullion holders and less than 2% for China.
Central banks have been expanding reserves due to the
highest level of monetary and systemic risk in living memory. Many central
banks are concerned about the outlook for the dollar, the euro and indeed the
Nations bought 254.2 tons in the first half of 2012 and
are likely to add close to 500 tons for the year as a whole, the London-based
World Gold Council said earlier this month.
Central banks were net sellers for the best part of 50
years despite the massive increase in the global money supply and indeed of
international foreign exchange reserves in that period and especially in
recent years (see important charts above).
Therefore, there is a real possibility that the recent
shift to becoming net buyers may be a game changer as central banks are now
likely to be net buyers for a long number of years to come.
This will provide a fundamental pillar of support under
Their buying is due to significant systemic and
monetary risk and the need to prudently diversify their foreign exchange
reserves. These risks will not abate for at least a few years.
China is continuing to quietly accumulate their
reserves and diversify out of their massive $3.24 trillion of foreign
China’s gold reserves remain miniscule as a
percent of their overall foreign exchange reserves – less than 2%. In
marked contrast to the US, Germany and even France and Italy when
gold’s share of national forex reserves is
China’s undeclared official gold reserve
purchases remains an elephant in the room in the gold market with very little
coverage of or analysis of the People’s Bank of China’s quiet and
untransparent accumulation of gold.
In the coming months, one can expect that China will
announce that they have doubled their gold reserves to over 2,000 tonnes. This announcement may again shock the market and
drive prices higher as did their announcement in April 2009 which surprised
those less informed about the gold market.
The People’s Bank of China will not telegraph its
intentions or purchases to the market as doing so would lead to a surging
gold price and to a further devaluation of its foreign exchange reserves.
China is trying to position the yuan
or renminbi as an alternative global reserve
currency and large gold reserves are essential if this is to be achieved.
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(Bloomberg) -- ETF Securities Platinum Products Had Highest Inflows in 2.5
ETF Securities Ltd. said its platinum exchange-traded products had their
highest inflows in 2 1/2 years last week, totaling $85 million, as labour disruptions hit mines in South Africa.
Tin products received $17 million of inflows, the
highest on record, the company said in an e-mailed report.
(Bloomberg) –Commodities Inflow Of $750 Million
index swaps signaled a net inflow of about $750 million in the week ended
Aug. 21, the first net inflow in seven weeks, Citi Research said in an e- mailed
report to clients. Since the end of June, commodities have had a net outflow
of $8.5 billion.
(Bloomberg) -- Gold ETP Holdings Rise to Record for
Fifth Straight Session
holdings in exchange-traded products backed by the metal rose to a record for
the fifth straight session.
The amount increased 3 metric tons, or 0.1 percent, to
2,451.63 tons, data tracked by Bloomberg showed.
Gold inches down as investors await central banks
meeting - Reuters
Gold Drops on Speculation Bernanke Will Refrain From Stimulus
– Business Week
Gold, silver retreat in electronic trading – Market
Gold forecast to hit $1,800 an ounce – San Francisco
Flashing Warning On The "Unintended Consequences"
Of Ultra Easy Monetary Policy From... The Fed?! – Zero
Santelli Channels Max Keiser: On Liquidity And More Central
Bank ‘Counterfeiting’ – Max Keiser
Bullishness rising faster than gold
– Market Watch
Gold, Jim Grant, Bernanke, Draghi
& A Collapse In Confidence – King World News
Brain-dead politics assures chaos till 2016
– Market Watch
The Gold Standard and the Myth of Price Stability