Category: Market Updates

09
Dec
2010

Long Term Interest Rate Rises Should Support Higher Gold Prices

Gold

Market focus has shifted to the US bond market and concerns about ultra accommodative US monetary and fiscal policy and continuing quantitative easing. This has seen heavy selling of long term US government debt and long term interest rates have thus risen. The yield on US 10 year Treasuries (benchmark cost of capital internationally) has risen from below 2.4% to over 3.2% in just two months and from 2.95% to 3.23% since just last Monday and the speed of the rise is what is concerning.

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08
Dec
2010

Silver’s 1980 Record Nominal High Targeted by Hedge Funds and Investors

Gold

Gold and silver prices reached new record highs of $1,430.95/oz and 30 year highs of $30.68/oz respectively yesterday. It is important to remember that these are nominal highs of more than 30 years ago. Adjusted for inflation, the record highs are $2,300/oz and $130/oz (see silver charts below). Gold also reached new record nominal highs in sterling, euros and most major currencies yesterday on growing concerns about currency debasement.

Gold is currently trading at $1,395.56/oz, €1,053.81/oz and £885.73/oz.  

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07
Dec
2010

Gold Reaches New Record Nominal High at $1,428/oz on Sovereign Debt and Currency Debasement Concerns

 Gold

Gold has reached new record nominal highs (in most major currencies) and silver a new 30 year nominal high due to a variety of macroeconomic and geopolitical factors. Market focus remains on the Eurozone debt crisis but has shifted somewhat to concerns about ultra loose US monetary policy and the likelihood that this will lead to a devaluation of the dollar, inflation and currency debasement.

Gold is currently trading at $1,428.68/oz, €1,067.69/oz and £904.57/oz.

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03
Dec
2010

Precious Metals Ready to Break out on Chinese Demand, Korean Tension and Currency Risk

Gold

Gold is higher in all currencies again this morning (see Cross Currency Table below) and is heading for a second weekly gain in dollars (and other major currencies), as China’s imports surged, geopolitical risk in the Korean peninsula remains elevated and uncertainty about the euro, currencies and paper assets in general is leading to continued safe haven demand.

Gold is currently trading at $1,390.30/oz, €1,054.78/oz and £890.30/oz.

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02
Dec
2010

China’s Gold Imports Soar by Massive 500% on Investment Demand

Gold

Gold and silver are higher again today in all currencies after eking out marginal gains yesterday, when gold rose to new record nominal highs in euros and in British pounds at £895.44/oz. The weakness of sterling against gold shows that the euro and the dollar are not the only currencies about which investors are concerned. Gold at $1,391/oz remains some 2% below its record nominal high seen on the 9th of November ($1,421/oz London PM Fix) and after the recent period of consolidation looks set to challenge this level again.

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01
Dec
2010

November Sees Gold Up 3% in USD and 9% in EUR and Silver Surges 14% and 22%

Gold

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30
Nov
2010

Gold Over €1,056/oz on Concerns of European Contagion Spreading

Gold

Concerns that the European debt crisis will spread has seen equities, bonds and the euro come under pressure and gold rise in all currencies. With the euro having fallen to 1.30 against the dollar, gold has risen to near record nominal highs over €1,056/oz. Gold is also higher in Swiss francs, Japanese yen and sterling and appears to be targeting £900/oz (GBP).

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26
Nov
2010

Silver Targets $30 on Investment Demand – Risk of Contagion Increases

Gold

Gold is steady in dollars and pounds but has risen again in euros as the dollar has fallen in world markets. Gold is being supported by renewed concerns of contagion in eurozone debt markets and the risk that tensions in the Korean peninsula will escalate into a war. The hesitant risk appetite of recent days has dissipated again on these concerns. This is seeing falls in equity markets internationally and gold being supported – particularly in euro terms. 

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25
Nov
2010

Gold Well Below Inflation Adjusted 1980 High in Deutsche Mark

Gold

Gold has remained firm despite an increase in risk appetite as seen in the bounce in equity markets in Asia and Europe so far this morning. While Korean concerns have abated for now, eurozone "peripheral" debt is under pressure again pushing spreads with bunds to, or in some cases close to, euro-era highs. The 10-year benchmark bond of Ireland is now up 6 basis points at 8.72%, while Portugal and Spain are up 7bp to 6.87% and up 11bp to 5.14%, respectively. This has seen gold remain firm in major currencies and remain near nominal highs in euros.

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24
Nov
2010

Gold up in Euros and Pounds as Eurozone and North Korea Concerns Continue

Gold

Gold is marginally lower in dollar terms this morning while it has risen in pounds and sharply in euro terms again to over €1,034/oz. Concerns of contagion in the eurozone are increasing and show that markets are shifting their focus from Ireland to sovereign risk in Portugal, and most worryingly Spain, as seen in record bond spreads. 

Gold is currently trading at $1,374.99/oz, €1,031.50/oz, £871.68/oz.

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