Gold Gold is lower today as the dollar has continued to eke out gains ahead of the G20 summit where competitive currency devaluations and currency wars are set to be discussed. Gold is down 0.3% in dollars and has fallen in most currencies except for the Swiss franc which is under pressure today.
Gold The knee jerk reaction to the Chinese interest rate rise was an increase in risk aversion which saw falls in equity and commodity markets and this contributed to gold falling more than 2%. Poor earnings results also contributed to the weakness in equities. Gold's weakness was also likely due to the dollar rising and to profit taking after gold's recent gains. Support is at $1,325/oz and $1,300/oz and resistance is at $1,374/oz and the record nominal high of $1,385/oz (see chart below).
Gold Gold rose to new record nominal highs and silver to 30 year nominal highs again this morning as the dollar weakened and there were renewed concerns that large banks may have to raise more capital. Gold's rise is not solely a dollar story with gold rising to near record nominal highs even in the safe haven currencies of the yen and Swiss franc. Gold rose to 112,537 yen an ounce in trading in London this morning, the highest price since June 28. Gold is currently trading at $1,376.70/oz, €977.70/oz, £859.60/oz.
Gold Gold and silver continue to remain robust given the real concerns about the US, Eurozone and global economy. These concerns are creating doubt about the outlook for the dollar, the euro and other fiat currencies due to competitive currency devaluations and currency debasement. Gold has risen to near record nominal highs in British pounds (see chart below) and is less than 1% from a new high in dollars as the dollar has fallen again on QE2 concerns. Despite the recent rise in prices, physical demand remains robust especially in Vietnam, India and Asia.
Gold With the Federal Reserve soon to embark on QE2 and printing money and buying US bonds in a sizable way, possibly as soon as November, gold should be well supported when it does correct. As with all bull markets, gold is climbing a wall of worry with the public remaining unaware and (mainstream) media commentary sparse and skeptical. The primary trend remains up and short term pullbacks are to be expected. Gold is currently trading at $1,346.80/oz, €975.21/oz, £851.00/oz.
Gold Gold and silver's weekly gains have been pared but both remain higher for the week so far. Gold and silver fell almost 1% and 2% respectively in trading on the COMEX yesterday. They traded sideways in Asian trading and have resumed their slide in early New York trading. The dollar has bounced from record monthly lows and this is leading to some selling. Profit taking is also likely after the recent run up in price. Gold is currently trading at $1,328.80/oz, €957.28/oz, £837.48/oz.
Gold Precious metals have risen to new highs on deepening concerns about the US economy and the growing risk of currency devaluations internationally. Gold reached new nominal record highs at $1,364.77/oz and silver reached new 30 year record nominal highs at $23.52/oz. Gold is currently trading at $1,355.95/oz, €968.88/oz, £848.97/oz. Silver
Gold All currencies except for the yen have fallen against gold today. The dollar and sterling have sold off again and the dollar is looking technically vulnerable at 77.61 on the US Dollar Index. Currency markets continue to be the primary focus of markets with growing concerns about competitive currency devaluations. The IMF is now warning of currency wars and the increasing vulnerability of the global financial system. Gold is currently trading at $1,344.30/oz, €969.14/oz, £847.60/oz.
Gold Gold rose in all currencies and rose 1% to new record dollar highs (nominal) at $1,327.90/oz this morning. The Bank of Japan pledged to pump more funds into the struggling economy and keep rates "virtually at zero". This surprised markets and given that the Federal Reserve and other central banks look set to soon provide fresh injections of economic stimulus is leading to demand for gold as a store of wealth. Gold is currently trading at $1,330.50/oz, €964.76/oz, £837.71/oz.
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.
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