|
Today's AM fix was USD 1,583.25, EUR 1,267.41, and GBP
1,013.73 per ounce.
Yesterday’s AM fix was USD 1,569.00, EUR 1,256.41, and GBP 1,009.00 per
ounce.
Silver is trading at $27.47/oz,
€22.08/oz and £17.64/oz. Platinum is
trading at $1,445.25/oz, palladium at $601.40/oz and rhodium at $1,190/oz.
Gold’s safe haven
credentials were burnished again yesterday when despite falls in stock
indices globally, gold rose $15.10 or 0.99% and closed at $1,586.30/oz. Gold
traded sideways in Asia and continues in a narrow range in European trading
holding above $1,580/oz.
Gold is hovering above $1,580/oz
and consolidating on yesterday’s gains on the realisation
that the EU summit this week will not solve the area’s intractable debt
crisis.
Incredibly, this will be the 20th time EU leaders have
met. While gold has not surged in value as many expected,
gold has performed well during the period having again preserved wealth.
July options expiry later this afternoon could lead to
volatile trading and there has been a pattern in recent years of price rises
soon after option expiration.
Nomura Securities cut its gold price target this year
to $1,754/oz from $1,791/oz,
but lifted its targets for 2014 & 2015. Nomura said that central-bank
buying, continuing strong Chinese demand, persistently negative real interest
rates, and a growing bunker mentality for those investors who see dark
scenarios on the horizon, were all positive for gold.
“The further deterioration of the economic
recovery, enhanced potential for quantitative easing and continued structural
problems in the euro zone lead us to believe that gold prices will stay
stronger into 2014 and 2015,”Nomura analysts said in a research brief
Monday.
The physical market noted bargain hunting from
consumers. Premiums for gold bars were little changed at between 50 and 80
cents to the spot London prices in Singapore.
Turkey raised its reported gold holdings by another 2%
in the month of May. Turkey’s gold holding rose by 5.7 tonnes in May to total 245 tonnes,
International Monetary Fund data showed, making it the latest in a string of
countries to increase gold bullion reserves this year.
Russia expanded its gold reserves by 15.5 metric tons
in May as Ukraine and Kazakhstan increased their holdings of the metal,
International Monetary Fund data shows according to Bloomberg.
Russia’s bullion reserves climbed to 911.3 tons
last month when gold averaged $1,587.68 an ounce, data on the IMF’s
website showed. Ukraine’s climbed 2.1 tons to 32.7 tons and Kazakhstan
boosted reserves by 1.8 tons to 100 tons, the data show.
Central banks are expanding reserves due to the
Eurozone debt crisis and concerns about fiat currency debasement.
Central banks are on course to buy more bullion this
year than the purchases of about 456 tons in 2011 as countries diversify their
reserves.
Gold in USD, EUR & GBP – (April 2011 to Today)
- Shows July August 2011 Price Rise
Turkey has allowed banks to hold more of their reserves
in gold to provide extra liquidity. The central bank this month raised the
proportion of reserve requirements that can be held in foreign exchange to 50
percent from 45 percent, while the limit for gold was increased to 25 percent
from 20 percent. The changes will add as much as $2.2 billion to gold reserves.
Gold accounts for about 9.1 percent of Russia’s
total reserves, 5.1 percent of Ukraine’s and 15 percent of
Kazakhstan’s, according to the World Gold Council. That compares with
more than 70 percent for the U.S. and Germany, the biggest bullion holders,
according to Bloomberg figures.
Kazakhstan plans to raise the amount of gold it holds
as part of its reserves to 20 percent, Bisengaly Tadzhiyakov, deputy chairman of the country’s
central bank, said earlier this month.
Central bank demand and Chinese demand alone should be
enough to put a floor under prices near these levels and gold looks well
positioned for another summer rally akin to the one seen last July and August
(see chart above).
OTHER NEWS
(Reuters Global Gold Forum) -- Turkey raised its reported gold
holdings by 5.692 tonnes in May to a total 244.986 tonnes, International Monetary Fund data showed, making
it the latest in a string of countries to increase bullion reserves this
year.
(Bloomberg) -- IShares Silver
Trust Holdings Unchanged at 9,876 Metric Tons
Silver
holdings in the IShares Silver Trust, the biggest
exchange-traded fund backed by silver, were unchanged at 9,875.75 metric tons
as of June 25, according to figures on the company’s website.
June 25 June 22 June 21 June 20 June 19 June 18
2012 2012 2012 2012 2012 2012
Million Ounces 317.513 317.513 315.767 315.767 315.767
315.233
Daily change 0 1,745,942 0 0 533,507 1,940,108
Metric tons 9,875.75 9,875.75 9,821.45 9,821.45
9,821.45 9,804.85
Daily change 0.00 54.30 0.00 0.00 16.60 60.34
(Reuters Global Gold Forum) -- Nomura has cut its gold
price forecast by 2 percent for 2012 to $1,754/oz
and by 4 percent for 2013 to $1,981. A note says: "2H 2012 is expected
to be stronger for gold, with 3Q traditionally a strong seasonal period for
Indian demand."
Cross Currency Table – (Bloomberg)
For breaking
news and commentary on financial markets and gold, follow us on Twitter.
NEWS
Gold holds above $1,580 on EU summit uncertainty
- Reuters
Gold May Gain for Second Day as Europe Crisis Fuels
Haven Demand – Business Week
India's Gold Demand May Revive on Normal Monsoon
– Wall Street Journal
Gold, silver retreat in electronic trading
- MarketWatch
COMMENTARY
Gurdgiev On Significance of Gold Collateral to
Germany’s European Redemption Fund – Max Keiser
On The Verge Of A Historic Inversion In Shadow
Banking - ZeroHedge
Wen passes, Ben twists, Angela sticks
– The Cobden Centre
À Propos Those BIS Gold Swaps
– The Financial Times
Revolting PIIGs, A Golden Hope?
– Hinde Capital
Mark
O’Byrne
Goldcore
|
