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Gold’s London AM fix this morning
was USD 1,747.50, EUR 1,326.68, and GBP 1,102.80 per ounce. Yesterday's AM
fix was USD 1,744, EUR 1,327.65, and GBP 1,106.74 per ounce.
Cross Currency Table - Bloomberg
Gold has seen quite volatile up and down
trading in Asia and Europe but within a narrow $10 band.
It saw gains initially in Asia to $1,752/oz before a retracement to $1,744/oz. It then rose to
$1,750/oz again as Asian trading closed.
Early European trading saw gold quickly
fall from over $1,750/oz to below $1,746/oz prior to a quick reversal and gold reaching an eight
week high at $1,753.45/oz.
Resistance is at $1,750/oz and there appears to be a determined seller at these
levels.
Gold Spot $/oz - 2 Days
(Bloomberg)
However, the short term technicals are positive with a series of higher lows and
higher highs.
Gold has risen to 8 week highs despite
positive manufacturing data, higher factory activity in Germany, China and
the US and the hope that a Greek debt restructuring solution is imminent.
Demand for physical in Europe, Asia and
internationally remains robust which is supporting gold.
Investors will today watch the US weekly
jobless claims data for the week ending January 28th.
Adding to the very gold supportive
interest rate backdrop, Japan's finance and economic ministers are putting
pressure on the Bank of Japan to consider easing monetary policy even further.
Negative yields on some bonds (such as
TIPS) are very gold positive as is moves to let investors buy short term
bills with negative yields.
Gold is also being supported by central
bank buying. Russia's gold and foreign exchange reserves rose to $504 billion
in the week to Jan. 27 from $499.7 billion a week earlier.
Knowledgeable industry participants
continue to be bullish on gold.
Newcrest Mining, the world's third
largest gold producer, expects gold to trade as high as $2,500 an ounce and
retain its safe harbour status for as long as the
world's financial system remains in crisis.
Newcrest chief executive Greg Robinson
said today that gold will remain a hedge against a global financial
breakdown, citing risks such as a devaluation of the U.S. dollar,
today’s global currency, European economies in dire shape and
persistent political tensions throughout the globe.
Bank of America Merrill Lynch said today
that gold bullion may reach $2,000/oz in Q4, up
from a 1Qtr estimate of $1,850.
For breaking news and commentary on
financial markets and gold, follow us on Twitter.
SILVER
Silver is trading at $33.72/oz,
€25.66/oz and £21.30/oz.
PLATINUM GROUP METALS
Platinum is trading at $1,618.00/oz, palladium at
$689/oz and rhodium at $1,400/oz.
(Bloomberg) --
China’s demand for gold will continue to rise on growing incomes and
investment against inflation, Albert Cheng, World Gold Council’s
managing director for the Far East region, says in email. Given the
country’s “strong affinity to gold” and record imports in
November, this year is “set to be a strong year” in a part of a
longer-term trend, Cheng says
(Bloomberg) --
Turkey’s gold imports were 2.96 metric tons in January, the Istanbul
Gold Exchange said on its website today. Silver imports were 4.2 tons last
month, the data show. Holdings rose from 4.4 million ounces in October and
3.7 million ounces in September, according to the data. In September and
November, Turkey’s central bank increased the proportion of required
reserves that commercial banks can deposit in gold. The changes have
increased the amount of gold Turkey declares in its official reserves.
(Bloomberg) -- Iran has
$120 billion in foreign currency reserves and 907 tons of gold, the Tehran
Times reported, citing Yahya Ale-Eshagh, who heads the Tehran Chamber of Commerce,
Industries and Mines.
The gold reserves have a total value of
$17.5 billion, the newspaper cited Ale-Eshagh as
saying. Iran has “no shortage” of foreign currencies or gold to
meet domestic demand, he said.
Ale-Eshagh said
recent fluctuations in the gold and currency markets were a result of
mismanagement by some state bodies; he called for tighter monetary control by
the government, according to the report.
NEWS
(Reuters)
Gold rises to 8-week high, firm euro supports
(Reuters)
Gold in a bubble? Not in Europe, where public can't sell
fast enough
(Reuters)
Economic woes could push gold to $2500-Australia's
Newcrest
(CNBC)
Fed's Low Rates Killing Credit, Slowing Recovery: Gross
(BusinessWeek)
California Will Borrow Up to $1 Billion to Skirt Cash
Crisis
COMMENTARY
(ZeroHedge)
Bill Gross Explains Why "We Are Witnessing The Death
Of Abundance" And Why Gold Is Becoming The Default "Store Of
Value"
(Max Keiser)
The Historical Case For $960 Silver
(Benzinga)
Central Bankers Weaken Their Currencies, Boost Gold
(The Economic Collapse Blog)
34 Shocking Facts About U.S. Debt
(RT)
Chinese 'gold rush': Country diversifying assets
(Ludwig Von Mises Institute)
Currency Wars
Mark
O’Byrne
Goldcore
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