Gold was flat in New York yesterday despite the increasingly bullish macro environment.
Gold fell in early trading in London on further falls in oil prices ($108.24 a barrel – Light Sweet Crude Oil Future – Combined – OCT08) and on the continuing rally in the dollar (reached 1.4386 to the Euro) but gold has recovered some of its early losses.
Concerns regarding the outlook for corporate profits internationally and for the health of the global economy is weighing on stock markets and should lead to safe haven demand for gold as it did in the first year of the credit crisis.
In light Labour Day trading yesterday, gold fell as Hurricane Gustav did not impact the Gulf of Mexico as severely as had been expected.
Gold has continued to fall in trading in London as oil prices have continued their recent slide and are down nearly 5% to near $105 a barrel (Light Sweet Crude Oil Future – Combined – OCT08) and the dollar has risen to a 7 month high against the euro (below $1.45) and the US dollar index has risen to a 10 month high.
International gold demand remains very s
Gold surged at the open in Asia (from $830/oz to just over $836/oz) but has given up some of the early gains in volatile trade.
Shortages of certain bullion products is possibly the most important issue facing the gold and silver markets today.
The sole maker of South African Krugerrands, Rand Refinery Ltd., largest gold refinery in the world, today ran out of the iconic bullion coin after an ‘unusually large’ order from an unnamed buyer in Switzerland.
Rand Refinery has delivered more than 46m blank coins over the years since it opened in 1967.
[caption id="" align="alignleft" width="360" caption="South African Krugerrand"]Continue Reading
Gold has flatlined and is marginally higher this morning with the dollar marginally lower and oil marginally higher on continuing concerns about the possible impact of tropical storm Gustav.
Gold has been gradually edging higher for the last two weeks and appears to be ready to rally in the seasonally strong autumn months due to the strong fundamentals.
Dollar weakness, firm oil and continuing tension in the Caucasus are leading to gold remaining well bid this morning. Warnings from NATO to Russia to stay out of Ukraine and calls for the European Union to be ready for “hard headed engagement” with Moscow are not doing much to help confidence in already nervous markets.
Besides increasing geopolitical risk – the risk that mother nature and weather can pose is being felt again.
Gold finished trading in New York yesterday at $822.40, up $3.10 and silver was up 22 cents to $13.58. Gold and silver rallied in Asian and in early European trading this morning.
Gold finished trading in New York on Friday at $819.30, down $7.60 and silver was down 14 cents to $13.36. Gold and silver traded sideways in Asian trading prior to a sell off in early European trading this morning. Gold is trading at $811.30/811.70 per ounce (1030 GMT).
Gold has fallen this morning on a sharply stronger dollar on weak European data (rose from above EUR/USD 1.47 to as high as 1.4595 in a matter of minutes) and lower oil prices. The dollar remains near six month highs against the euro.