Category: Market Updates

10
Nov
2010

“Yellow Elephant in the Room” Consolidates in Cautious Trade Ahead of the G20 Summit

Gold

Caution has marked trading in most markets today at the start of the G20 summit in Seoul. Gold is marginally lower in dollar terms but is higher in euro terms due to sovereign debt issues in Ireland and other periphery eurozone states. Gold is also higher in yen which was have fallen sharply today prior to the G20 summit.

Gold is currently trading at $1,397.05/oz, €1,017.66/oz, £869.14/oz.

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09
Nov
2010

Gold Rises in All Currencies as Currency Devaluations Continue and Contagion Concerns Return

Gold

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08
Nov
2010

World Bank Chief Calls For Return to Modified Gold Standard

Gold

This morning, gold hit a new record nominal high in dollar terms at $1,398 an ounce and gold in euro terms surged to reach €1,000. A subsequent bounce in the dollar and profit taking saw gold fall from the record nominal high in dollar terms but it remains near €1,000/oz. There is increasing concern about Ireland and other periphery EU nations’ worsening fiscal and economic situations and possible ramifications for the European Monetary Union and the euro. Silver has risen to over €19/oz (see Cross Currency Table below).

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04
Nov
2010

Gold Higher as Risk of Competitive Currency Devaluation and Debasement Underestimated

Gold

Gold fell initially after the QE2 announcement yesterday prior to recovering and it then rose steadily in after hours Asian and again in early European trading. Gold has risen to $1,362/oz due to the dollar falling and oil and commodities rising significantly in the aftermath of the announcement of the new $600 billion of quantitative easing.

Gold is currently trading at $1,362.30/oz, €957.21/oz, £843.20/oz.

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03
Nov
2010

QE2, Sovereign Debt and Chinese Demand Projected to Double in a Decade

Gold

Gold and silver rose again yesterday with silver reaching a new nominal 30 year high. Both are higher in trading today as markets await concrete data regarding the scale of the second phase of quantitative easing. QE2 may already be priced into the markets but a smaller than expected figure could see money come off the table. A higher than expected figure could see further gains in all markets and further increase the risk of asset bubbles.

Gold is currently trading at $1,355.40/oz, €966.42/oz, £841.65/oz.

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02
Nov
2010

Concerns that QE2 Will Create Virulent Inflation or Stagflation

Gold

Gold prices are higher today as the dollar is again under pressure ahead of the US elections and the Federal Reserve’s decision regarding the scale of QE2. Oil prices above $83 a barrel is supporting gold and oil prices are up 9% in the last 30 days which will contribute to increasing inflation pressures.

Gold is currently trading at $1,357.30/oz, €971.72/oz, £849.96/oz.

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01
Nov
2010

China’s Diversification Plans and QE2 See Gold Remain Robust

Gold

Gold and silver rose in all currencies as markets opened in Asia, prior to giving up those early gains. However, in trading in London this morning both precious metals have risen and are higher as the dollar has come under pressure again. Equity markets are mixed in Europe despite most Asian markets closing positively – except for the Nikkei which fell 0.52%.

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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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