Gold Markets nervously await data this week including the important monthly jobs number which will likely again underline the risks of a double dip recession. While Asian shares advanced, European shares (London closed for a public holiday) have been more tentative this morning and the US futures are marginally positive. Currencies markets have not seen much movement but yen is stronger again today despite concerns that the government action will not be able to control currency price movements.
Gold Gold fell marginally yesterday and has fallen for a third day in a row. Gold's hesitation and weakness is likely due to renewed dollar strength, oil weakness and profit taking after gold's recent sharp rally. Market participants will be nervous about another disappointing report on the housing market later today. Gold is currently trading at $1,215.75/oz, €964.12/oz, £789.19/oz.
Gold Gold traded sideways in Asian trade, hovering near last week's close at $1,228/oz. There was a brief spike to $1,231.35/oz in early European trade prior to sharp and determined selling. Gold remained marginally higher until the London AM fix whereupon there was a further wave of selling which took prices down to $1,225.30/oz. Gold is lower in most currencies except the euro and the Swiss franc which are slightly weaker this morning (see Cross Currency Rates). Gold is currently trading at $1,225.72/oz, €964.91/oz, £788.30/oz.
Gold Risk aversion remains on as European equity markets have followed their US and Asian counterparts lower after yesterday's poor US economic data. The dollar and yen have rallied today and this is contributing to gold's slight weakness in these currencies this morning. Gold is higher in Canadian dollars, euros and marginally higher in sterling as these currencies have fallen today. Government bond yields continue to fall to record lows with US Treasuries at their lowest yield in 11 months and German Bunds at record low yields.
Gold Gold rose to new 6 week highs at $1,237/oz after the disappointing US jobs number heightened concerns about the health of the US economic recovery. The rise follows yesterday's recovery from initial falls and marginal higher close as safe haven buying trumped an initial bout of profit taking. There is no technical resistance between this price level and the record highs (nominal) seen in June at $1,265/oz and the fundamentals continue to remain sound with safe haven demand remaining quite high - especially for this time of year.
Gold Gold fell to $1,220/oz per ounce in early European trade before bouncing. It is now trading at $1,223/oz and has thus given up some of yesterday's small gains as summer trading volumes remain low and traders book profits after the recent rise in gold prices. Investors remain risk averse as seen in weakness in equity markets and the safe haven bid for German bunds, Japanese yen and US Treasurys (despite the dollar coming under selling pressure).
Gold Gold has risen (over $1,214/oz) on safe haven buying after the poor jobs number underlined growing concerns about the health of the US and global recovery. Concerns about sovereign debt markets in Europe have seen the euro come under pressure again. Economic uncertainty has not been helped by Fitch warning that the US AAA credit rating may come under pressure in the coming years. Gold is currently trading at $1,213.70/oz, €944.92/oz and £777.76/oz. Silver
Gold Gold rose yesterday in the intermediate aftermath of the worse than expected US trade deficit figures ($49.9 billion - exports down 1.3%; imports down 3%). Gold has maintained those gains despite weakness in equity markets and in US futures. Risk aversion is back on after the Federal Reserve expressed concerns about the recovery. The pessimistic tone of their communication has led to increased concerns of a double dip recession. In this environment, investors should remain defensive and continue to diversify into gold.
Gold Gold continues to consolidate above the $1,200/oz level and traded in a range between $1,207/oz and $1,215/oz overnight in Asia. Gold has risen slightly in European trade as the dollar has come under pressure. The poor retail sales have created concerns about the health of the US consumer and the other poor recent data on jobs and trade and budget deficits may see the dollar come under pressure again. Support for gold is at $1,195/oz and resistance is at $1,217.90/oz.
Gold Gold rose 1.26% yesterday after the Portuguese debt downgrade; silver rose 2%. Gold has gradually edged up in Asian and early European trade. It may challenge resistance at yesterday's high of $1,217.90/oz but if it falls below the recent trading range of $1,210/oz to $1,215/oz it could quickly fall to short term support of $1,195/oz and $1,190/oz. Gold is currently trading at $1,213/oz and in euro, GBP, CHF, and JPY terms, at €955/oz, £795/oz, CHF 1,284/oz, JPY 107,498/oz respectively.
Gold Gold spiked higher today in all currencies as Portugal's downgrading and prices below $1,200/oz led to buying. The euro fell against both the dollar and gold (from €954 to €960 per ounce - see chart) on Moody's two-notch downgrade of Portugal. The downgrade was expected but it has ignited concerns that the European sovereign debt markets remain vulnerable, leading to continuing safe haven demand for gold. Lingering concerns over the European bank stress tests and the European banking system are also supportive.
Gold Gold is lower in Asian and early European trading on low volume as the dollar has risen and renewed risk appetite has resulted in tentative gains in equity markets. Gold's marginally higher weekly close last week was positive from a technical point of view and could lead to follow through this week as momentum following traders and funds "make the trend their friend". Gold is currently trading at $1,207/oz and in euro, GBP, CHF, and JPY terms, at €960/oz, £804/oz, CHF 1,284/oz, JPY 106,825/oz respectively.
Gold Gold fell $2.50 to $1195.30/oz yesterday and is now down 1% on the week. It traded sideways in Asia and down in early European trading. Another lower weekly close will again be bearish technically and would suggest that further retrenchment and consolidation may take place. A higher close today and on the week would help reverse the technical damage done recently. Gold is currently trading at $1,197/oz and in euro, GBP, CHF, and JPY terms, at €944/oz, £788/oz, CHF 1,261/oz, JPY 105,998/oz respectively.
Gold Gold fell to an inter day six week low yesterday of $1,184.75/oz yesterday before a strong rebound which saw it close higher on the day at $1,197.80/oz. It rose above $1200/oz in Asian trade to $1,207.75/oz prior to giving up some of those gains in early European trade. Many traders and investors who have nee on the sideline in recent weeks see the present sell off as a buying opportunity. Gold is currently trading at $1,200/oz and in euro, GBP, CHF, and JPY terms, at €948/oz, £792/oz, CHF 1,263/oz, JPY 105,665/oz respectively.
Gold Gold has had a quite start to the week trading in a tight range between $1,210/oz and $1,215/oz so far in Asian and early European trading. With the US out for the Independence Day holiday it looks set to be a quite day although low volumes could result in volatility. A close below $1,200/oz could see gold fall to support at $1.185/oz and strong support at $1,165/oz. Gold is currently trading at $1,210/oz and in euro, GBP, CHF, and JPY terms, at €966/oz, £800/oz, CHF 1,285/oz, JPY 106,249/oz respectively.
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