Gold Gold has rallied to new record highs in early New York trading again today due to continuing nervousness in markets and much uncertainty about the economic outlook for the coming months. Equity markets are mixed, oil is back over $78 a barrel but most importantly the dollar continues to fall in value against most currencies and especially gold.
Gold Gold has remained well bid above the $1,300/oz level and silver has risen another 0.7% and looks set to challenge the $22/oz level. Participants at the LBMA conference see gold rising to over $1,450/oz over the next year due to concerns about central banks' reaction to the economic crisis. LBMA delegates forecast silver to trade at $24/oz in 12 months time which it is a conservative estimate given the very strong technical and fundamental situation. Gold is currently trading at $1,308.98/oz, €961.14/oz, £829.10/oz.
Gold Gold rose slightly yesterday as the dollar fluctuated and US stocks suffered small losses but has fallen 0.3% today. Gold was a whisker away from the $1,300/oz level on the spot market yesterday with some very determined sellers at this level. Those holding large short positions may be determined to defend this level in order to protect against further losses. Tentative speculative longs may take profits. Gold is currently trading at $1,290.43/oz, €959/oz, £814.82/oz.
Gold Gold and silver eked out further marginal gains yesterday to close at $1294.30/oz and $21.17/oz. Both have risen again in Asian and European trading with continuing nervousness about the robustness of the economic recovery and loose monetary policies leading to continuing demand. Gold is teasing market participants by hovering just below the psychological $1,300/oz level. Reaching $1,300/oz seems inevitable and market participants are now looking to $1,400/oz, however a correction might come about after the headline 1,300/oz number is reached.
Gold Gold rose to a record for a third day in London and early New York trading while silver traded 2.3 percent below $21.355 an ounce, its highest price since it reached $48.70/oz in 1980. Sterling is also under pressure today and this has seen gold rise in sterling terms to over £820/oz (see Cross Currency Table).
Gold Gold and silver are higher again this morning with gold hitting new record nominal highs and silver having risen sharply to $20.995/oz which is a new multi-month high. A close above $21/oz will be important technically and a close above $21.24/oz would be very bullish technically with long term chart analysts looking at the 1980 record high (just below $50/oz) and the silver's record quarterly high close of $32.20/oz as the next levels of technical resistance.
Gold The Japanese yen, Swiss franc, gold and particularly silver are stronger this morning as risk aversion has returned as seen in lower European equity markets. The dollar has recovered from earlier weakness and the euro has fallen to 1.284 USD and €976/oz. Oil back above $77 a barrel and rising commodity prices is likely also supporting gold and silver. Gold is currently trading at $1,253.10/oz, €975.55/oz, £812.96/oz.
Gold Gold and the dollar have fallen as risk appetite has returned due to the Basel III regulations and the positive economic data out of China. The euro in particular has rallied sharply in what would appear to be a relief rally after the recent weakness. Gold and silver fell marginally last week which has clouded the technical picture and could lead to momentum driven weakness this week. However, the medium and long term fundamentals remain sound and should reassert themselves if there is a period of correction and consolidation.
Gold Gold is flat in dollars but higher in euros, Swiss francs and particularly British pounds this morning (see Cross Currency Table). Jitters about European sovereign debt markets is keeping gold above $1,250/oz and near record highs of $1,265/oz. The complacency of recent weeks is giving way to the gradual realisation that the worst may not be over yet, in terms of the global financial crisis and this could lead to a challenge of $1,300/oz in the short term rather than the long term.
Gold Gold rose again yesterday and had a new record daily high close (nominal) as renewed concerns about European banks and sovereigns led to a flight to the relative safety of US Treasuries, German bunds, the yen and the Swiss franc. Gold also rose in yen and Swiss franc terms yesterday showing that it is increasingly trading as a currency rather than a commodity. Gold surged in the euro and is again challenging the €1,000/oz level. Gold is currently trading at $1,258.10/oz, €991.64/oz, £814.73/oz.
Gold Last week's early September relief rally continued this morning as equities have risen again in Asia and Europe. Gold is one of the strongest currencies in the world this morning, along with the yen. While the dollar is flat, sterling has fallen sharply against all currencies on UK economy concerns and gold in sterling terms has risen from £806/oz to £811.20/oz (see Cross Currency Table).
August and the summer are now over and investors and savers are now focusing on the autumnal months ahead. Stocks internationally had their worst August performance since 2001 and the ISEQ fell 7.2% in the month. Mounting concerns about the health of the economic recovery in Ireland, the US and internationally saw investors move into government bonds and gold. Some respite came due to the falling price of oil - oil was down 8.9%, its first monthly decline since May.
Gold Risk appetite increased yesterday as the first day of the new month saw equity buyers return and bond prices fall. Gold and silver prices fell marginally but remained near multi week highs and in gold's case very near the all time record high (nominally). European equity markets are a bit more tentative this morning and the pound and the dollar have come under selling pressure.
Gold After yesterday's 1% rise, gold traded sideways in Asia but has risen again in early European trading as the dollar has fallen and oil risen after yesterday's sharp falls. Gold has risen in dollars, pounds , yen and Swiss francs which are all weaker today but is slightly weaker against the euro and commodity currencies. Gold was up 5.6% in August thereby regaining the 5% losses seen in July.