Today’s AM fix was USD 1,732.75, EUR 1,355.09, and GBP 1,082.63 per ounce.
Friday’s AM fix was USD 1,696.00, EUR 1,337.75 and GBP 1,062.06 per ounce.

Silver is trading at $33.50/oz, €26.32/oz and £21.05/oz. Platinum is trading at $1,596.50/oz, palladium at $655.70/oz and rhodium at $1,025/oz.

Gold in Euros – January 2011 to Today

Gold has risen to new record highs in euro terms overnight in Asia when gold consolidated on last week’s 3% gains and rose above €1,360/oz for the first time. 

Significant consolidation has been seen in the last year between €1,200/oz and the previous record high at €1,359.01/oz. This record high was seen almost exactly a year ago on September 9th 2011.

Gold in Euros Today – Gold’s new record euro high at EUR 1,360.23 Per Ounce 

This consolidation will likely give rise to further weakness in the euro versus gold in the coming weeks. The record high shows an increasing lack of investor confidence in the single currency. 

It shows that there is concern that Mario Draghi’s ultra loose monetary policies at the ECB may lead to further euro weakness and to inflation in the eurozone.  

Gold surged in all currencies on Friday and rose 2.13% in dollar terms and closed at $1,736.50. Silver soared to a high of $33.707 and finished with a gain of 3.09%. 

The nonfarm payrolls figure came in at 96,000 and the market expected 130,000 which showed the US economy is in a very poor state which led to safe haven gold buying. 

Gold is consolidating near 6 and a half month highs in dollar terms with a variety of strong fundamental factors leading to higher prices.  It is only a matter of time before gold records new record nominal highs in dollar terms over $1,900/oz.

Gold in USD – 5 Days (Tick) – Bloomberg

Gold is being supported by the unrest in South Africa which continues to destabilise the mining sector.

Gold Fields said this morning that some 15,000 workers were still on strike at one of its gold mines outside of Johannesburg. The tally of workers on strike at the West Section of the KDC Gold Mine is about 3,000 higher than last week. All production at the mine has been brought to a standstill.

With the US job growth contracting significantly in August, investors see that the Fed will be inclined to announce QE3 at this week’s policy meeting on the 12th & 13th.

US gold futures and options climbed to 6-month high 144,775 contracts in the week ended September 4, according to data from the U.S. Commodity Futures Trading Commission.

Gold ETF’s grew to a record high of 72.125 million ounces on Friday.

Also, Hong Kong’s July gold shipments to China was almost double on the year and exports for the first 11 months were greater than 2011, suggesting China will overtake India as the world’s top gold consumer.

UBS has joined JP Morgan, Goldman, Bank of America and others in revising upwards its gold forecast. UBS raised its one-month gold forecast to $1,850 an ounce, from $1,700 and the three-month estimate to $1,850 from $1,750 an ounce in a report e-mailed today.

UBS also revised higher their estimates for silver and see silver 10% higher at $37 an ounce in one and three months from $33.50 today. UBS previous silver forecast was from $32 and $35.

JP Morgan has said that they expect gold prices to rise another 6% in 2013 and another 2% in 2014.

Central banks may purchase 489 metric tons of gold this year, JPMorgan Chase & Co. said.

The purchases along with investor buying of exchange-traded products should drive demand this year, said Yuriy Vlasov, an analyst at the bank, in a report released Friday.

NEWSWIRE
(Bloomberg) — Gold Traders Increase Bets on Price Rise, CFTC Data Shows
Hedge-fund managers and other large speculators increased their net-long position in New York gold futures in the week ended Sept. 4, according to U.S. Commodity Futures Trading Commission data.

Speculative long positions, or bets prices will rise, outnumbered short positions by 170,464 contracts on the Comex division of the New York Mercantile Exchange, the Washington-based commission said in its Commitments of Traders report. Net-long positions rose by 11,973 contracts, or 8 percent, from a week earlier. 

Gold futures rose this week, gaining 5.0 percent to $1,740.50 a troy ounce at today’s close

Miners, producers, jewelers and other commercial users were net-short 219,386 contracts, an increase of 15,762 contracts, or 8 percent, from the previous week.

(Bloomberg) — Silver Traders Increase Bets on Price Rise, CFTC Data Shows
Hedge-fund managers and other large speculators increased their net-long position in New York silver futures in the week ended Sept. 4, according to U.S. Commodity Futures Trading Commission data.

Speculative long positions, or bets prices will rise, outnumbered short positions by 32,430 contracts on the Comex division of the New York Mercantile Exchange, the Washington-based commission said in its Commitments of Traders report. Net-long positions rose by 3,792 contracts, or 13 percent, from a week earlier. 

Silver futures rose this week, gaining 10.7 percent to $33.69 a troy ounce at today’s close. 

Miners, producers, jewelers and other commercial users were net-short 44,920 contracts, an increase of 6,346 contracts, or 16 percent, from the previous week. 

Cross Currency Table – (Bloomberg)

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