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Today’s AM fix was USD
1,717.00, EUR 1,317.22, and GBP 1,072.12 per ounce.
Yesterday’s AM fix was USD 1,725.00, EUR 1,321.03, and GBP 1,075.10 per
ounce.
Silver is trading at $31.80/oz, €24.52/oz and
£19.95/oz. Platinum is trading at $1,590.25/oz,
palladium at $605.25/oz and rhodium at $1,125/oz.
Gold climbed $6.40 or 0.37%
in New York yesterday and closed at $1,728.50. Silver hit a high of $32.434
and finished trading with a gain of 1%.
Gold edged down on Tuesday,
in tandem with equities that relinquished gains, however demand from jewellers supported prices as investors await the policy
statement from the US Federal Reserve meeting to be released on Wednesday at
18:15 GMT.
No major announcements are
expected to come out of the meeting. Last month the Fed committed to hold
rates low even after the economic recovery has strengthened. This was the
signal that indicated it will continue intervening until the economy grows
fast enough to decrease US unemployment sharply.
 
XAU/EUR Currency 3 Days – (Bloomberg)
The euro remained firm
against the dollar as the market expects Spain to apply for a bailout within
the next month. Now that Spain’s regional elections are complete and
with Spain’s Prime Minister Rajoy’s
People’s Party winning 41 out of 75 seats in the Galician assembly this
affirmed the approval of financial austerity measures and paves the way for a
formal bailout from the EU.
Spain's central bank
announced this morning that the Spanish economy contracted at a faster pace
in Q3 (1.7% vs. 1.3%) and that the country may miss its budget-deficit target
because of tax-revenue shortfalls.
In India, demand for the
yellow metal climbed overnight after a rebound in the rupee discounted prices
by 1%.
German Federal auditors
handed in a report slamming the Bundesbank for not
inspecting their foreign held gold reserves to verify their book value.
The report says the gold
bars "have never been physically checked by the Bundesbank
itself or other independent auditors regarding their authenticity or
weight." Instead, it relies on "written confirmations by the
storage sites."
The lion’s share of
Germany's gold reserves (nearly 3,400 tons estimated at $190 billion) are
housed in vaults of the US Federal Reserve, the Bank of England and the Bank
of France since the post-war days, when they were worried about a Cold War
Soviet invasion.
The Bundesbank
stated, “There is no doubt about the integrity of the foreign storage
sites in this regard".
In contrast with best
industry practices Germany’s gold reserves do not seem to be independently
verified by a third party. GoldCore Gold Bullion Services offers clients secure storage accounts in
Zurich, London, USA and Hong Kong, with independent verification of all client
stored assets.
Philipp Missfelder,
a politician from Merkel’s own party, has asked the Bundesbank
for the right to view the gold bars in Paris and London, but the central bank
has denied the request, citing the lack of visitor rooms in those facilities,
German’s daily Bild reported.
The Bundesbank
won't let German parliament members inspect the German gold vaulted abroad
because the central bank vaulting facilities supposedly lack "visiting
rooms." And yet one of those vaults, the Federal Reserve Bank of New
York, offers the public tours that include "an exclusive visit to the
gold vault".
Cross Currency Table – (Bloomberg)
With German elections around
the corner (and this a politically sensitive issue) the central bank decided
last month to repatriate about 50 tons of gold per year over the next 3 years
from New York to its headquarters in Frankfurt for "thorough
examinations" regarding weight and quality, the report revealed.
The auditor’s report
stated that the German Central Bank’s gold in London has dropped
"below 500 tons" due to recent sales and repatriations, but it did
not specify how much gold was held in the U.S. and in France. German media
have widely reported that some 1,500 tons — half of their total is stored
in New York.
The lack of an announcement
of the sale of the German gold in London suggests that the sale was actually
part of a gold swap with another central bank -- like the New York Fed. The
only question is the lack of transparency surrounding the fall in London. Was
German gold sold at the behest of the US and in exchange Germany took title
to US gold vaulted in the New York? Or was title to gold supposedly vaulted
in the United States?
German economists have led a
rally to “bring home our gold” and the news article listed below
was circulated by the AP.
For breaking news and
commentary on financial markets and gold, follow us on Twitter.
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NEWS
Gold holds above $1,720, Fed in focus
– Reuters
Gold Poised to Decline Before Fed Policy Meeting;
Silver Falls – Bloomberg
Fed likely to send wait-and-see signal at meeting
– Huffington Post
COMMENTARY
Unease about Germany's unchecked gold reserves
– Associated Press
Japanese Government Demands BOJ Do QE 9 One Month
After Failed QE – Zero Hedge
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