Monthly Archives: October 2010

29
Oct
2010

Gold Consolidates in October as QE2 and US Elections Loom

Gold

Gold is marginally lower in dollar terms and in most currencies except for the euro this morning as there are renewed budget and sovereign debt concerns in the eurozone. Peripheral sovereign bonds have fallen sharply in value (see below) – although losses were limited by rumours that the European Central Bank may have resumed bond purchases. This is leading to weakness in the euro and gold rising in euro terms as traders question whether the period ofrecent euro strength was overdone.

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28
Oct
2010

Palladium Rises on Supply and Demand Concerns as Investors See Potential for Palladium over $1,000/oz Again

Gold

Gold fell 1.1% yesterday and silver by 1.5% as expectations regarding the scale of QE2 were eased back to the $1 trillion to $2 trillion mark and assertions that the money printing would be done on a more gradual basis eased concerns. The dollar’s weakness today is leading to tentative strength in the precious metal markets.

Gold is currently trading at $1,327.95/oz, €959.02/oz, £836.02/oz.

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27
Oct
2010

Silver Robust as CFTC Commissioner Alleges Manipulation

Gold

While gold fell marginally yesterday (down 30 cents) on dollar strength, silver rose by over 1% (by 28 cents to $23.81/oz) after a senior CFTC Commissioner alleged that major silver market participants were involved in manipulation and suppressing the silver price. Overnight and this morning there has been weakness in equity markets internationally and in commodity markets with suggestions that risk aversion may have picked up ahead of the FOMC decision next Wednesday.

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26
Oct
2010

Federal Reserve Will Target $2 to $4 Trillion in Bond Buys

Gold

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22
Oct
2010

Gold Corrects as G20 Meet to Discuss Competitive Devaluations and Currency Wars

Gold

Gold is lower today as the dollar has continued to eke out gains ahead of the G20 summit where competitive currency devaluations and currency wars are set to be discussed. Gold is down 0.3% in dollars and has fallen in most currencies except for the Swiss franc which is under pressure today.

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21
Oct
2010

Gold and QE2 – Buy on the Rumour, Sell on the News?

Gold

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20
Oct
2010

Sterling Falls on Economic Concerns over Record UK Public Borrowing

Gold

The knee jerk reaction to the Chinese interest rate rise was an increase in risk aversion which saw falls in equity and commodity markets and this contributed to gold falling more than 2%. Poor earnings results also contributed to the weakness in equities. Gold’s weakness was also likely due to the dollar rising and to profit taking after gold’s recent gains. Support is at $1,325/oz and $1,300/oz and resistance is at $1,374/oz and the record nominal high of $1,385/oz (see chart below).

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19
Oct
2010

Geithner Tries to Reassure about Dollar Despite Ultra Accomodative Monetary Policy

Gold

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14
Oct
2010

Gold Reaches New Record Highs and Silver Reaches Record 30 Year Highs on Dollar Weakness

Gold

Gold rose to new record nominal highs and silver to 30 year nominal highs again this morning as the dollar weakened and there were renewed concerns that large banks may have to raise more capital. Gold’s rise is not solely a dollar story with gold rising to near record nominal highs even in the safe haven currencies of the yen and Swiss franc. Gold rose to 112,537 yen an ounce in trading in London this morning, the highest price since June 28.

Gold is currently trading at $1,376.70/oz, €977.70/oz, £859.60/oz.

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13
Oct
2010

Gold and Silver Remain Near Nominal Highs – QE2 Leads to Increasing Dollar Concerns

Gold

Gold and silver continue to remain robust given the real concerns about the US, Eurozone and global economy. These concerns are creating doubt about the outlook for the dollar, the euro and other fiat currencies due to competitive currency devaluations and currency debasement. Gold has risen to near record nominal highs in British pounds (see chart below) and is less than 1% from a new high in dollars as the dollar has fallen again on QE2 concerns. Despite the recent rise in prices, physical demand remains robust especially in Vietnam, India and Asia.

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