After gains in Asia, the precious metals have come under pressure in Europe. The recent sharp sell off has seen gold fall 5.7% in January. Nothing whatsoever has changed regarding the fundamentals of the precious metal markets and long term buyers are again buying on the dip. As long as interest rates remain near historic lows and real interest rates continue to punish savers, gold's bull market remains sound.
Gold is flat and silver marginally lower despite dollar weakness this morning. Some market participants are blaming the precious metal sell off on speculation that China may take more monetary action to curb surging inflation. This is unlikely to be the reason for the sharp selloff, rather it looks like another paper driven sell off in the futures market by leveraged players on Wall Street with various motives.
GOLD Gold has fallen by 1.7% and silver by 4% as the US dollar has bounced from 2 month lows. Some are attributing the sell off to interest rate hikes in Brazil and the bounce in the dollar. However, it is more likely due to further selling by momentum-driven traders who see that the short term trend is down and they are sticking it to under pressure longs. Gold is currently trading at $1,347.73/oz, €1,004.19/oz and £850.12/oz.
GOLD Gold is slightly higher in the US dollar and other major currencies. Spot silver has given up early gains but the futures market has seen longer term contracts fall more in price so that while spot is up $0.09 to $28.96/oz, the July 11 contract is only trading up $0.01 to $29.00 and and the December 11 contract has fallen by $0.084 to $29.01. The dollar has fallen to 78.42 on the US Dollar Index and is looking technically vulnerable of falling to long term support at 76.0.
*** BullionVault Clarification ***
Gold Gold and silver have fallen in most currencies today but are higher in the “commodity currencies” of Canadian, Australian and New Zealand dollars, and flat in Swiss francs. Gold and silver are both slightly higher for the week in US dollar terms but weaker in terms of other currencies. Gold is currently trading at $1,365.95/oz, €1,023.11/oz and £861.20/oz.
Gold Gold and silver have fallen by less than 1% in all major currencies today. Asian equities were mixed with strong selling seen in India and European equities and US index futures are tentatively higher. Eurozone periphery bonds yields have fallen as have those in Germany (10 year) after rising above 3% in recent days. Gold is currently trading at $1,385.30/oz, €1,046.24/oz and £875.67/oz.
Gold Gold is marginally higher in US dollars while silver has risen by nearly 1% in all major currencies this morning. Risk appetite remains highs as seen in higher Asian and European bourses today. The US, Hong Kong and New Zealand dollar are weaker as are Australian and German government bonds (which rose 6 basis points and 4 basis points to 5.51% and 2.96% respectively). Gold is currently trading at $1,383.29/oz, €1,065.88/oz and £887.27/oz.
Gold Gold remains well supported in all major currencies this morning, especially the euro, pound, yen and the New Zealand and Australian dollar. Concerns about inflation, credit bubbles and the growing likelihood that the Eurozone debt crisis will deepen is leading to continuing safe haven demand for gold – particularly in India, China and wider Asia. Gold is currently trading at $1,382.05/oz, €1,067.63/oz and £887.37/oz.
Gold Gold is marginally lower today despite EU sovereign debt issues again being focused on. Gold should be well supported at the 100 day moving average and some analysts are saying that last Friday’s sell off may mark the low for the year. Gold is currently trading at $1,367.25/oz, €1,060.72/oz and £881.26/oz.
Gold The final week of 2010 has seen a continuation of trends seen in markets throughout the year with equities and commodities continuing to rise. Investors increasingly wary of inflation are pushing commodity prices - particularly metals - higher, with copper hitting a new record nominal high, palladium reaching a nine-year high and silver at a new 30-year record nominal high at $30.90/oz (€23.25/oz and £19.86/oz). Gold is currently trading at $1,411.15/oz, €1,064.62/oz and £913.90/oz.
Gold Gold has fallen marginally in all major currencies today. Market participants are winding down before the holiday break and further profit taking and year end book squaring is seeing volume fall and gold remain in a tight range. Gold will likely get direction from the durable goods orders, consumer sentiment and new home sales data later today. Gold is currently trading at $1,382.43/oz, €1,055.37/oz and £897.97/oz.
Gold Gold and silver edged moderately higher again yesterday in most currencies. Profit taking and book squaring prior to year end have led to lacklustre range bound price action. News that the IMF gold sales to central banks has been completed, saw gold prices rise slightly. Despite the gold sales being off market - directly from the IMF to creditor nation central banks diversifying monetary reserves - the potential overhang of IMF gold supply and perceived risk was one of the few bearish factors in the gold market.
Gold Gold's recent correction continued yesterday but it has risen today as the dollar has fallen. Gold is up in most currencies this morning except in euro terms as the euro has seen a relief rally on the outcome of the EU agreement to create a post-1913 crisis tool. Fundamental disagreements remain though and the agreement may not be enough to stop the debt crisis from deepening with many analysts pinpointing the first quarter of 2011 as a high risk period. Gold is currently trading at $1,371.78/oz, €1,030.20/oz and £878.47/oz.
Gold Gold and silver are higher this morning ahead of a crucial EU summit on the deepening euro zone debt crisis today. The euro firmed slightly in overnight trade but has since given up those gains and is trading at USD 1.322, and €1,047/oz. Given that the crisis shows no signs of abating any time soon, with concerns shifting from Ireland and Greece to Belgium, Portugal and Spain, gold will likely continue to receive safe haven demand for the foreseeable future.
Gold Gold has fallen in dollars but is flat in sterling and euros this morning. Moody's has cut Spain's debt rating on contagion concerns which has seen the euro fall. Germany's opposition to further government financed aid is leading to tensions with the ECB, which is itself now under financial pressure and may need an increase in capital if it is to continue buying sovereign European debt. Gold is currently trading at $1,388.70/oz, €1,042.18/oz and £886.54/oz.
Gold Gold has risen in major currencies again today on continuing concerns about the dollar and paper currencies, and growing concerns about the emergence of inflation internationally. Commodity prices remain strong with bellwether copper rising to new record nominal highs and oil continuing to hover near $90 a barrel. Gold is currently trading at $1,405.35/oz, €1,044.48/oz and £886.04/oz.
Gold Most currencies fell against gold yesterday and again today as the euro and dollar are under slight pressure this morning. Both gold and silver look set to finish the week slightly lower in dollars and most currencies (except the euro) which is a bearish short term omen. Especially as the end of the year approaches and there could be some year-end book balancing and profit taking. Gold is currently trading at $1,391.19/oz, €1,049.56/oz and £878.35/oz.
Gold Market focus has shifted to the US bond market and concerns about ultra accommodative US monetary and fiscal policy and continuing quantitative easing. This has seen heavy selling of long term US government debt and long term interest rates have thus risen. The yield on US 10 year Treasuries (benchmark cost of capital internationally) has risen from below 2.4% to over 3.2% in just two months and from 2.95% to 3.23% since just last Monday and the speed of the rise is what is concerning.
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