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Today's AM fix was USD 1,607.00, EUR 1,298.90, and GBP
1,030.33 per ounce.
Yesterday’s AM fix was USD 1,613.00, EUR 1,300.39 and GBP 1,032.39 per
ounce.
Silver is trading at $27.88/oz,
€22.67/oz and £17.89/oz. Platinum is
trading at $1,406.20/oz, palladium at $582.70/oz and rhodium at $1,100/oz.
Gold climbed $0.40 or 0.02% in New York yesterday and
closed at $1,611.60/oz. Silver climbed to $28.21 and dipped again but
finished with a gain of 0.68%.
Gold initially traded sideways in Asia then dipped
below $1,610/oz but then recovered and has traded
in a range between $1,605/oz and $1,610/oz.
Gold Prices/Rates/Fixes /Volumes – (Bloomberg)
Gold edged down on Wednesday on profit taking after
sustaining 3 days of gains which saw gold creep slowly above the $1,600/oz level again.
Recent dollar strength and a lack of clarity in the
minds of many market participants regarding whether the ECB or the US Federal
Reserve Bank will employ more quantitative easing to prevent double dip
recessions and even depressions may be partly to blame for gold’s lack
of gains recently.
However, the dollar is set to weaken again due to the
appalling US fiscal situation and further quantitative easing and money
printing on behalf of the FED, ECB and BOE is almost inevitable.
Eric Rosengren, a Boston Fed
Bank President, made comments that the US Fed should launch QE3 to prevent
recession and ultra ‘dovish’ or uber
accommodative monetary policies are set to continue which is bullish for
gold.
Other macro data and developments were also gold
positive and likely to lead to safe haven demand.
Standard & Poor’s downgraded Greece’s
sovereign rating to negative and a Greek default continues to be almost
certain – with the attendant risk of contagion in the European and
global financial system.
Italy sank further into a recession as its Q2 ranked in
2.5% yearly decline. German industrial orders surprised on the downside for
June showing the contagion is not felt by European so called
‘PIIGS’ alone.
Gold Spot $/oz
Daily,10/08/07-08/08/12 - (Bloomberg)
The Bank of England has slashed growth forecasts to
zero and inflation predictions again. The BOE has been overly optimistic on
growth and wrong regarding inflation for some time and looks set to continue
to be so.
As long as governments and central banks continue to
pile debt upon debt and substitute sovereign debt for financial and banking
debt – the crisis will continue.
XAU/GBP Exchange Rate Daily - (Bloomberg)
A proper diagnosis is necessary before applying the
right remedy. Central banks continue to deal with the symptoms of the crisis
and not the causes. As any doctor will tell you, that is
not in the patient's long-term interest and risks making the illness worse
– and potentially fatal.
A debt crisis will never be solved by creating more
debt. Gold remaining not far from record highs in most fiat currencies shows
this and the consolidation of recent months has set the stage for a marked
increase in prices in the coming months.
Real diversification remains crucial and those who have
allocations to gold will continue to be rewarded.
XAU/EUR Exchange Rate Daily, 09/08/10-08/08/12 -
(Bloomberg)
Silver Market Sees ‘Anomalies’ and
‘Devious Efforts’ - CFTC’s Chilton
The silver
market was affected by “devious efforts” to move the price of the
precious metal, according to Bart Chilton, a member of the U.S. Commodity
Futures Trading Commission, as reported by Bloomberg.
“I continue to believe, consistent with my
previous statements and information from the public, that there have been
devious efforts related to moving the price of silver,” Chilton said by
e-mail today in response to questions from Bloomberg. “There have also
been silver and gold market anomalies outside of the silver investigate
window that have raised, and continue to raise, market concerns.”
The enforcement division of the Washington-based
agency, the main U.S. overseer of derivatives markets, began pursuing
allegations of manipulation in the silver market in September 2008.
Investigators have analyzed more than 100,000 documents
and interviewed dozens of witnesses, the CFTC said in a November 2011
statement. Chilton said last month the investigation may be completed as
early as September.
In a story published Sunday, the Financial Times
stated, "A four-year investigation into the possible manipulation of the
silver markets looks increasingly likely to be dropped after US regulators
failed to find enough evidence to support a legal case.”
The FT based their story on three unidentified people
“familiar with the situation."
However, Steve Adamske, a
CFTC spokesman, said on the silver investigation that “we will decline
to comment because the commission has not decided a course of action on this
matter.”
One of the identified targets of the current CFTC
silver market investigation has been JP Morgan Chase and some have long
voiced concerns that the concentrated short positions held by some banks,
including JP Morgan, could allow manipulation of the price and price capping.
This could result in a massive short squeeze which
propels prices much higher leading to further massive losses for ‘too
big to fail’ and ‘too big to bail’ banks should the small
silver market see sharp moves upwards due to the tight physical market.
For breaking news and commentary on financial markets
and gold, follow us on Twitter.
Cross Currency Table – (Bloomberg)
NEWSWIRE
(Thomson
Reuters Gold Forum) – India Gold Demand Slow
India's
gold demand at the start of the festival season has been slow with rural
buyers staying on the sidelines, preferring to hold on to their cash at a
time when deficient monsoon rains threaten to dent their incomes.
(Bloomberg) -- Gold Recovery Seen by Deutsche Bank From
More Dollar Weakness
A
“meaningful recovery” in gold may occur with further weakness in
the dollar, Deutsche Bank AG said.
“We still view the ongoing underfunding in the
U.S. external deficit as the dollar’s Achilles heel and one of the
factors that could drive gold prices higher,” Michael Lewis, an analyst
at Deutsche Bank, said in a report dated today.
(Bloomberg) -- Russia’s First-Half Gold Output
Falls 2.4% to 79.2 Metric Tons
Russia’s
first-half gold output fell 2.4 percent to 79.2 metric tons, led by a decline
at Kinross Gold Corp.’s mine in the Chukotka
region, the country’s Gold Producers’ Union said today in a
statement.
(Bloomberg) -- Gold in Euros Seen Climbing to All-Time
High: Technical Analysis
Gold
priced in euros may reach a record in the next six months after sliding
toward a support area comprising several key levels including the 200-day moving
average, according to a technical analysis from Commerzbank AG.
Gold denominated in euros continues to come off its
peak at end-July and is slipping toward 1,283.70 to 1,274.70, an area of
support made up of the 55-day moving average, the May-to-August support line,
the lows seen in mid-July and the 200-day moving average, technical analyst
Axel Rudolph wrote in a report.
Gold priced in the 17-nation currency reached an
all-time high of 1,374.76 euros on Sept. 12, 2011, according to Bloomberg
data. It peaked this year at 1,344.39 euros on Feb. 22, Bloomberg data show.
Support levels are marked by clusters of buy orders, according to technical
analysts, who say that past moves may be used to predict trends.
The long-term resistance at 1,325.30, made by a
straight downward sloping line joining the September and February peaks, is
expected to give way before the end of September with an advance towards the
highs in February then being “on the map,” Rudolph wrote in a
report dated yesterday.
“While trading above the 200-day moving average,
our medium term outlook will remain bullish,” he wrote. “A new
all-time high above that seen in 2011 is expected to be seen within the next
half year or so.”
Bullion is poised to extend an 11th year of gains on
expectations that central banks around the world will add further stimulus to
boost economic growth hurt by Europe’s debt crisis. Euro-denominated
bullion traded at 1,299.20 an ounce at 11:42 a.m. in Singapore, while gold
priced in dollars was at $1,610.15 an ounce.
NEWS
Gold slips with demand for safe havens
- MarketWatch
Gold flat, volume low; investors wonder about
central banks - Reuters
Tanzania Gold Exports Up 30% in Year Through June,
Bank Says - Bloomberg
Gold Snaps Three-Day Advance as Dollar’s
Strength Damps Demand - BusinessWeek
COMMENTARY
Is gold getting ready for take-off? -
MarketWatch
When will the European gold shops stop buying and
start selling gold? - GoldSeek
Gold And Grand Theft Economics
– Zero Hedge
Europe's Scariest Chart In More Detail
- Zero Hedge
Gold rush in India? Government steps in again
- Mineweb
Mark
O’Byrne
Goldcore
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