“Gold Is A Physical Safe Asset” Says Central Bank of Korea

Today’s AM fix was USD 1,703.00, EUR 1,300.79, and GBP 1,057.90 per ounce. 
Yesterday’s AM fix was USD 1,706.75, EUR 1,305.35, and GBP 1,058.65 per ounce.

Silver is trading at $33.15/oz, €25.46/oz and £20.67/oz. Platinum is trading at $1,597.00/oz, palladium at $681.00/oz and rhodium at $1,075/oz.


Cross Currency Table – (Bloomberg)

Gold fell $18.50 or 1.08% in New York yesterday and closed at $1,696.70/oz. Silver slid to as low as $32.66 and finished with a loss of 1.88%. 

Gold futures selling after midnight in New York, when European and American traders are away and Tokyo’s gold trading is quiet after lunch, drove prices down $10/oz in only one minute. More than 3,000 gold-futures contracts changed hands at 12:47 a.m. New York time, and the market’s quick slide triggered an automatic, 20-second trading halt in February gold futures, said the operator of the Comex. 

According to Dow Jones, preliminary exchange data showed that trading volume from 12 until 1am was over 6 times the average of the last month.

Gold has recovered from the fall yesterday and overnight and is tentatively above $1,700/oz. 

There was no fundamental driver of the price falls yesterday or today. It may have been momentum traders selling as the short term trend is now down. Yesterday stop losses were breached at $1,710 & $1,700 which led to further falls.

Support is now at the early November lows of $1,673/oz – seen just before Obama’s election.

The stalemate between the US Congress and the White House has some players waiting on the sidelines.

Important on the horizon is the Fed meeting next week December 11 and 12th, the latter including a summary of economic projections and a press conference by the Chairman. In the minutes released after the last meeting, the US Fed layout a threshold strategy where the Fed would maintain near zero interest rates based on an economic variable such as employment rates at 7.5%.  

The crux of the issue FOMC members is deciding whether that variable should be given with numeric or verbal guidance. Since, Operation Twist is expiring at the end of the year; information is necessary as to when it will be replaced with QE4.

The Bank of Korea increased gold reserves 20% last month to diversify investments, boosting holdings for the fourth time since June 2011 and underscoring increased demand by central banks according to Bloomberg. 

The bank added 14 metric tons in November, bringing the total to 84.4 tons, the bank said in a statement today. By value, holdings increased about $780 million to $3.76 billion, equivalent to 1.2% of total reserves, the bank said.

“Gold is a physical, safe asset,” the Bank of Korea said in the statement. The precious metal “is a way of diversification, which helps reduce investment risk in terms of foreign-exchange reserves management,” it said.

The Bank of Korea bought 16 tons in July, 15 tons in November 2011 a further 25 tons over a one-month period from June to July last year.


Gold 1 Year – (Bloomberg)

Russia Favors Gold Over Sovereign Bonds 
Russian Finance Minister Anton Siluanov speaking to reporters yesterday said that gold is seen by Russia’s central bank as a “rather stable” asset amid global monetary easing.

The world’s biggest energy exporter saw gold and foreign exchange reserves rise to $524.3 billion in the week to Nov. 23 from $522.2 billion a week earlier.

At the end of 2011, Russian foreign exchange reserves (including monetary gold, special drawing rights, reserve position at the IMF and foreign exchange) were at $498.6 billion.

They remain the world’s fourth biggest after China, Japan and Saudi Arabia. More than 41 percent of its currency reserves were in euros as of Sept. 30 but the Russia central bank is gradually reducing its exposure to the dollar and the euro.


Silver 1 Year – (Bloomberg)

Separately, China and Russia pledged to further strengthen their economic and financial cooperation at a bilateral dialogue between the two countries’ said finance ministers on Monday.

Chinese Finance Minister Xie Xuren and his Russian counterpart Anton Siluanov co-chaired the Fourth Russia-China Finance Ministerial Dialogue, during which the two sides discussed a number of bilateral and international economic and financial issues, according to Xinhua.

The two sides exchanged views on the global macroeconomic situation, policies and measures to promote sustainable economic growth in both countries, as well as the fiscal regime and tax framework.

The two ministers also discussed how to strengthen international financial cooperation between China and Russia.

Central banks in South Korea, China and Russia realise gold bullion is a safe haven asset.

The majority of retail investors and the general public in the most of the world, and especially the western world do not … yet. 

NEWSWIRE
(Bloomberg) — Gold ETP Holdings Climb to Record for 13th Straight Session  
Amount in exchange-traded products backed by the metal rose 0.1% to 2,627 metric tons, data tracked by Bloomberg showed.

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

NEWS
Gold near 1-month low, U.S. budget talks drag – Reuters

Gold futures pare losses, regaining $1700 – Market Watch

Sudden Selloff Mars Gold – Wall Street Journal

Bank of Korea Raises Gold Holdings as Central Banks Buy – Business Week

COMMENTARY
Video: Gold Seen to Triple on World Economic Deterioration – Bloomberg

The Final Denouement of Paper Currencies – Max Keiser

The Picture For Silver Is Exceptional – King World News

With this volatility, is gold still a safe haven? – Market Watch

When Currency Wars Become Trade Wars… – Zero Hedge


Mark OByrne

Also on news-goldcore-com

Videos

Listen: The Case For Gold and How To Buy It

Gareth Soloway – This is the catapult that will send gold to new highs

Former Fed Insider Danielle DiMartino Booth Gives Us Her Interest Rate Predictions

Blog posts

SEC Action Shows Why Cryptos Are Not “As Good As Gold”

The bitcoin versus gold debate has gone on for over a decade now. In that time regulators have been scratching their heads wondering how far they can let the cryptocurrency machine run for. “This far,” seems to be the decision this week. Meanwhile gold and silver carry on, continuing to offer a simple and unassuming […]

READ MORE

Global Debt Crisis: Pretend and Extend?

Those who have chosen to invest in gold bars or to buy silver coins have often done so because they fear the mismanagement of the monetary system. This week has offered further reassurance that investors are right to want to own gold in a balanced portfolio because yet another fight about the US debt ceiling […]

READ MORE

A Showdown in Gold Is Imminent

The industry-leading In Gold We Trust Report was released this week. So convinced are the authors “that the monetary and geopolitical situation as well as the chart development of the gold price suggest that a showdown in gold is imminent” that the 2023 report is entitled “Showdown”. This is arguably one of (if not the) […]

READ MORE

Featured

The King and Queen will be Gold and Silver

READ MORE
Newsletter
Category
Archives
Popular

No posts available

Videos

Listen: The Case For Gold and How To Buy It

Gareth Soloway – This is the catapult that will send gold to new highs

Former Fed Insider Danielle DiMartino Booth Gives Us Her Interest Rate Predictions

Blog posts

SEC Action Shows Why Cryptos Are Not “As Good As Gold”

The bitcoin versus gold debate has gone on for over a decade now. In that time regulators have been scratching their heads wondering how far they can let the cryptocurrency machine run for. “This far,” seems to be the decision this week. Meanwhile gold and silver carry on, continuing to offer a simple and unassuming […]

READ MORE

Global Debt Crisis: Pretend and Extend?

Those who have chosen to invest in gold bars or to buy silver coins have often done so because they fear the mismanagement of the monetary system. This week has offered further reassurance that investors are right to want to own gold in a balanced portfolio because yet another fight about the US debt ceiling […]

READ MORE

A Showdown in Gold Is Imminent

The industry-leading In Gold We Trust Report was released this week. So convinced are the authors “that the monetary and geopolitical situation as well as the chart development of the gold price suggest that a showdown in gold is imminent” that the 2023 report is entitled “Showdown”. This is arguably one of (if not the) […]

READ MORE

Featured

The King and Queen will be Gold and Silver

READ MORE