Gold and Silver The precious metals market remains steady with gold trading at $1,407/oz and Silver holding steady at $33.39/oz. On the currencies, Gold is trading at at £861/oz and €1,021.14/oz respectively, and silver is trading at £20.26 and €24.03. Platinum Group Metals Both platinum, trading at $1,795/oz, and palladium trading at $808/oz are lower from the start of the week, while rhodium remains steady at $2,400 per ounce.
Gold and Silver Today is a US holiday and gold is trading at $1,398/oz this morning but silver is the real mover with a 3.25% increase since Friday’s close, currently trading at $33.41/oz. On the currencies, gold trades up across all the majors showing £861.67/oz and €1,022/oz respectively; silver trades at £20.58/oz and €24.41/oz. Platinum Group Metals
Gold and Silver Gold continues to strengthen and currently trades at $1,385/oz with silver tracking movements around the $31.73/oz level. On the currencies, gold trades at £854.29/oz and €1,021.43/oz (from the London AM Fix of $1,377.00/oz, £853.32/oz and €1,014.74/oz yesterday), and silver trades at £19.37/oz and €23.01/oz (from the London fixing yesterday of £18.99/oz and €22.59/oz respectively). Platinum Group Metals
Israeli comments led to dollar weakness and gold, silver and oil rallying yesterday. The Israeli government described the Iranian warships move into the Suez canal as a “provocation” and hinted at a possible response.
There is a real sense of the “calm before the storm” in markets globally. Complacency reigns, despite signs that the sovereign debt crisis in Europe is deepening and that Japanese and US bond markets also look very vulnerable due to rising inflation, very large deficits and massive public debt.
Silver and particularly gold rose sharply on the release of the higher than expected UK inflation data. It showed that UK inflation quickened to 26 month highs at 4.0%. Currency debasement and higher food and energy prices are leading to an inflation surge in both developed and emerging markets.
Gold and silver are higher after last week’s 1% and 3.5% gains in dollars. Silver is particularly strong again this morning and the euro has come under pressure as bonds in Ireland, Spain, Portugal and Greece continue to rise. While Asian equity markets were higher, European indices have given up early gains.
Gold and silver are higher against all currencies (except the Canadian dollar) in the wake of the worse than expected trade deficit number ($40.6 billion). Sterling and euro are particularly weak against gold and the US dollar today.
Gold is down 0.32% against the US dollar which is higher against all major currencies today. Gold is marginally higher in euros, Swiss francs, and Aussie and Kiwi dollars. Silver is down 1% in US dollars and lower in all currencies.
Gold and silver are marginally lower against most currencies after yesterday’s 1% and 3% rise respectively. Gold rose above €1,000/oz again yesterday and remains just below the €1,000/oz level today despite the euro being stronger versus other currencies. Silver is back above the important $30/oz psychological level and €22/oz.
Gold is higher in most currencies today except for the Aussie and Kiwi dollars; silver has risen by some 1% in US dollars and is higher against all currencies. Asian equities were mixed with the Nikkei higher (+0.41%) and the Hang Seng lower (-0.29%). European equities are mixed with tentative gains being seen in the BE 500 and the Stoxx 50.
Gold is marginally lower in euro, pound and dollar terms and marginally higher in Japanese yen and Swiss francs. Silver is higher in all currencies. With gold’s 0.51% higher close last week (first rise in 5 weeks) and silver’s 4% rally, the bears will be nervous that the recent downward trend may have reversed.
Gold and silver have given up a small bit of yesterday’s strong gains in all currencies (especially the euro – see chart below) but are up more than 1% and 3% respectively on the week. Asian equity indices were higher overnight and are higher for the week, except for India where there are growing concerns about surging inflation and interest rates. European indices are higher today and most are up by some 1.5% to 2% on the week – as are US indices.
The Swiss franc and the euro are weaker today and marginally lower against gold. Asian equity markets were higher (except for a 0.25% fall in the Nikkei) but European indices are more hesitant this morning. Greek, Italian and Spanish debt markets have seen yields creep slightly higher this morning.
Hopes of economic recovery swept stocks higher in New York yesterday and this confidence spread to Asian equity markets. European stocks are tentatively higher as concerns about Egypt and geopolitical risk may be hampering gains. Oil prices remain near recent record highs (brent rose above $102 a barrel) and there are hopes that geopolitical tensions will subside, markets will remain calm and there will not be panic buying of oil and a new oil crisis.
Spot gold and silver fell 6% and 9% respectively in January. The January price fall looks very much like another price correction and consolidation and is to be expected after the 30% rise in dollar terms seen in 2010. Absolutely nothing has changed with regard to the fundamentals of the gold and silver market and investors should use this sell off as another opportunity to diversify into the precious metals.
The geopolitical ramifications of the revolution in Egypt and the likelihood that it will spread throughout the Middle East, North Africa and possibly further afield is leading to volatility in markets. Equity indices in the Middle East and Far East were mostly down (except for China) overnight. European bourses were under pressure this morning but have recovered somewhat.
The World Gold Council released their excellent quarterly 'Gold Investment Digest'. The research has some interesting facts and important charts and shows that global demand was robust and broad based for both the final quarter and the year. Those continuing to call gold a bubble, often based on a lack of knowledge of the gold market, and failing to advise diversification, should read the report.
What were termed "shock" UK GDP figures yesterday, led to falls in the FTSE and the pound sterling which fell against the dollar and gold. Sterling's fall saw sterling gold prices rise from £833 per ounce to over £842 per ounce after the news. Economists were once again surprised by the very poor UK GDP figures which showed the economy has contracted by 0.5% rather than growth of 0.5%. This clearly shows that the UK is now experiencingstagflation or high inflation and very low or contracting economic growth.
Gold and silver's sell off has continued this morning. Despite gold's 3.75% and silver's nearly 8.4% fall in January and the continued sell off in futures markets, physical demand remains robust and supply tight. While speculators are taking profits and some shorting, investors and those who see gold as a store of value continue to accumulate physical.
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