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Today's AM fix was USD 1,614.75, EUR 1,311.95, and GBP
1,032.78 per ounce.
Yesterday’s AM fix was USD 1,622.75, EUR 1,323.29 and GBP 1,034.46 per
ounce.
Silver is trading at $28.92/oz,
€22.78/oz and £17.94/oz. Platinum is
trading at $1,414.20/oz, palladium at $587.70/oz and rhodium at $1,100/oz.
Gold dropped $8.80 or 0.54% in New York yesterday and
closed at $1,613.30/oz. Silver edged down as low as $27.89 and ended with a
loss of 0.92%.
Cross Currency Table – (Bloomberg)
Gold was still hovering in a narrow range on Wednesday,
as investors await monetary policy decisions from the US Federal Reserve
(1815GMT) and the European Central Bank (tomorrow), which will determine the
direction of markets.
A Fed decision to launch QE3 would increase the yellow
metal’s appeal as an inflation hedge and bolster prices.
US house prices increased for their 4th month in a row
suggesting that the US housing market recovery may be underway which dampened
further hopes of any immediate easing in the US Fed’s monetary policy.
The markets are playing a waiting game and investors
are cautious. Thursday’s ECB policy meeting will determine if President
Mario Draghi will have the backing he needs to
embark on significant policy changes to rescue the region’s financial
woes.
Yesterday, German Finance Minister Schauble
said in an email response to a newspaper, “The rules of the European
Stability Mechanism don’t foresee a banking license to allow
refinancing at the European Central Bank”. Schauble’s
comments fell like a penny in a wishing well that rippled to curb the
market’s enthusiasm. Since Draghi’s
initial comments to “do anything it takes” gold has increased by
nearly $50/oz.
Gold Prices/Rates/Fixes /Volumes – (Bloomberg)
China's PMI (Purchasing Managers' Index) dropped to an
8 month low of 50.1 in July from 50.2 in June, showing further contraction.
It shows that the global economic slowdown is not just contained to the
shores of the Atlantic.
Since March gold has not been able to hold its 100 day
moving average for more than 3 days and closed just under it again yesterday.
A boost from the US Fed will allow more people to look
at gold as an investment alternative. The average Joe public still
doesn’t have a position to hedge against other investments. When QE
begins ETF inflows will increase, physical buying will return after monsoons
in Asia, the Indian government get’s their
power grid in order, and it will be the brave early adopters that could be
rewarded.
For breaking news and commentary on financial markets
and gold, follow us on Twitter.
NEWS
Gold Gains For First Day In Three On Prospects Of
More Stimulus - Bloomberg
Gold steady as investors eye central bank decisions
- Reuters
Gold futures rebound in electronic trading
- MarketWatch
COMMENTARY
Euro
Area forecast by Standard and Poor – True Economics
China PMI Misses And Prints Lowest In 8 Months With
10 Of 11 Sub-Indices Contracting – Zero Hedge
U.S. Stocks Decline After German Comments on Banking
License – San Francisco Chronicle
Mark
O’Byrne
Goldcore
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