Daily Market Update

Euro and Swiss Franc Fall to New Record Lows Against Gold

Today’s AM fix was USD 1,781.00, EUR 1,374.65, and GBP 1,098.77 per ounce.
Yesterday’s AM fix was USD 1,755.25, EUR 1,365.32and GBP 1,084.16 per ounce.

Silver is trading at $1,670.75/oz, €26.96/oz and £21.52/oz. Platinum is trading at $1,670.75/oz, palladium at $637.90/oz and rhodium at $1,075/oz.

Gold climbed $26.00 or 1.48% in New York yesterday and closed at $1,777.30. Silver surged to hit a high of $34.74 and finished with a gain of 2.15%. Euro gold rose to a new record high at €1377. 

Gold prices are up on Friday, as the new austerity budget from Spain was received favourably and it increased the appetite for higher risk assets, sending bullion, commodities – brent crude oil at $112, the euro and equities to rise.  

Gold prices in euros held near the prior session’s all time record high of EUR 1,380/oz, hit after rising spot prices coincided with a weaker euro on Thursday.  Euro-priced gold was up 1.1% at EUR 1,375.48/oz.  

US gold futures for December delivery were up $2.50/oz at $1,783.00 this morning. 

Quarterly performance for, gold, silver and platinum were all up.  Gold is on the way for an 11.4% gain. Silver racked up the largest gain and rose over 25%.  Spot platinum and palladium were up 15.4% and 9.8% for the 3rd quarter. US gold American Eagle coins was improved from last quarter (138,000 ounces vs. 133,000 ounces) however still the lowest quarterly figures in over 2 years.

Gold reached highs in euros and Swiss francs yesterday, in London trading it hit EUR 1,379.60/oz compared to EUR 1,375/oz last September.  In Swiss Francs gold traded at CHF 1,666/oz.

Europeans have been viewing scenes of violence and riots from protestors in Madrid and Athens over the past few days. 

Barclays Plc. announced yesterday it was opening its own London vault to store gold and other precious metals due to demand from their clients.

Investment banks have readjusted price targets upward in the past few days with some calling for gold at $2,000 and higher in the next few months.  

This signals that the recent rally of the euro against the dollar was largely due to the poor US monetary and fiscal situation and the greenback’s weakness and not due to any great confidence in the single currency per se.

Protests and violence clearly show that the eurozone debt crisis is far from over and there remains the risk of a currency crisis in the European Monetary Union (EMU).

Finally, we are confident that the new record euro and Swiss franc highs will soon be followed by new highs in gold.

For breaking news and commentary on financial markets and gold, follow us on Twitter.

NEWS

Gold Sets Records in Euros and Francs on Currency Concern – Business Week

Gold rises to record in euros, swiss francs MarketWatch (blog) – Market Watch

Barclays Opens Precious Metals Vault in London as Demand Climbs – Business Week

COMMENTARY
Spain Must Leave The Euro – The Telegraph

Barclays Opens Massive Brand New Precious Metals Vault In London – Zero Hedge

More Incredibly Important Developments In The Gold Market – King World News

 

Mark OByrne

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