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Today’s AM fix was USD
1,747.25, EUR 1,349.54, and GBP 1,090.46 per ounce.
Yesterday’s AM fix was USD 1,747.25, EUR 1,347.56, and GBP 1,090.87 per
ounce.
Silver is trading at $34.08/oz, €26.41/oz and
£21.34/oz. Platinum is trading at $1,620.50/oz,
palladium at $666.40/oz and rhodium at $1,065/oz.
Cross Currency Table –
(Bloomberg)
Gold edged up $1.30 or 0.07% in New York yesterday and closed at $1,748.40.
Silver traded off and recovered climbing to a high of $34.16 and finished
with a gain of 0.12%.
Gold moved slightly upward
today after Greece’s creditors reached a new bailout deal, which will
help fund emergency aid for Athens.
The 34.4 billion euro in aid
plus reducing interest rates on the bailout loans expect to cut Greek debt to
124% of GDP. The interest rates have been dropped to 50 basis points above
the interbank rate so countries like Italy and Spain will be lending at a
loss.
The Eurozone’s
dangerous but easy policy choice of “extend and pretend”
continues which is bullish for gold in the coming months.
Mark Carney has been named
as the new governor of the Bank of England by Chancellor George Osborne.
Mr Carney, the governor of the
Canadian central bank, will serve for five years and will hold new regulatory
powers over banks.
Carney would be considered something
of a monetary dove. The Goldman Sach’s
alumni’s appointment means that ultra loose
monetary policies will likely continue at the Bank of England leading to
weakness in sterling – especially versus gold.
The US Commodity Futures
Trading Commission said that institutions and hedge funds slightly raised
their bullish bets on silver and gold futures in the week ending November
20th.
The White House and
Republicans are still in a stalemate over the fiscal cliff. The White House
press secretary said that President Obama is still waiting for a realistic
proposal to look at.
“President Obama would
be open to proposals that closed loopholes or capped deductions,”
Carney said, “so long as raising the top tax rate remains on the
table.”
Obama has asked for $1.6
trillion in higher revenues to pay down the debt. In the 2011 debt ceiling
negotiations, Republicans were considering a plan that would involve only
$800 billion in new revenue or half what is needed to avoid the cuts and pay
down the deficit.
“Extend and
pretend” will also likely be seen in the U.S. – with obvious
ramifications for the medium and long term outlook of the dollar.
The Chinese Ministry of
Industry and Information Technology said that China aims to produce between
420 and 450 tonnes of gold bullion in 2015, up
about 25% from 2011, while consumption may reach 1,000 tonnes
at that time.
 
XAU/EUR Currency, 1 Year – (Bloomberg)
CME Group declared a force
majeure at one of its New York precious metals depositories yesterday, run by
bullion dealer and major coin dealer Manfra, Tordella and Brooks (MTB), due to “operational
limitations” posed by Hurricane Sandy.
MTB has “operational
limitations” following Hurricane Sandy and can’t load gold
bullion, platinum bullion or palladium bullion, CME Group Inc., the parent of
the Comex and New York Mercantile Exchange, said
today in a statement.
MTB must provide holders
with metal at Brinks Inc. in New York to meet current outstanding warrants in
relevant delivery periods with compensation for costs, Chicago-based CME
said.
The CME said that MTB will
not be able to deliver metal as the lower Manhattan company deals with
"operational limitations" almost a month after the arrival of
Hurricane Sandy.
MTB is one of five
depositories licensed to deliver gold against CME's benchmark 100-troy ounce
gold contract, held 29,276 troy ounces of gold and 33,000 troy ounces of
palladium as of Nov. 23, according to data from CME subsidiary Comex.
In a notice to customers on
Monday, CME declared force majeure for the facility, a contract clause that
frees parties from liability due to an event outside of their control.
CME said that individuals
holding MTB warrants or certificates for a specific lot of metal stored in
the depository, may receive gold delivered from Brinks
Co. (BCO) in New York. MTB is responsible for any additional costs incurred
by customers receiving metal from Brinks, CME said.
"This shouldn't have a
material impact on the way market participants are doing business," a
CME spokesman said. "They'll still contact MTB if they want to take
delivery on contracts," and MTB will arrange for delivery through Brinks
according to Dow Jones Newswires.
In a notice posted to its
website dated Nov. 12, MTB said the firm "sustained substantial
damages" following Hurricane Sandy's arrival in New York City on Oct.
29, and had curtailed its operations.
The force majeure will
remain in effect until further notice from the exchange, the CME said. The
delivery period for CME's December-delivery precious metals futures begins on
Friday.
XAU/GBP, Daily – (Bloomberg)
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