Daily Market Update

Gold Surges to Record Near $1,300/oz on Fed Statement


Gold surged after the Fed statement yesterday indicating that interest rates would remain at 0 to 0.25% and will remain exceptionally low for an extended period. No change in policy was announced but some market participants have interpreted the statement to mean that the Federal Reserve may embark on a new round of quantitative easing. The dollar fell sharply on the announcement and gold surged from $1,272.40/oz to a new record over $1,290/oz or 1% in the following hour. Silver surged more, rising from $20.62/oz to over $21.00/oz or 2% in the minutes after the announcement – a new 30 year high (see long term quarterly silver chart below).

Gold is currently trading at $1,291.30/oz, €964.87/oz, £823.71/oz.

Gold in USD – 5 Day (Tick). Click on image to view full size.

The dollar has fallen to near 80.0 on the US Dollar index after the Federal Reserve’s "prepared to provide additional accommodation if needed" comments. Some investors are selling dollar assets as they are receiving poor yields for dollar denominated assets despite rising risk and concerns that QE2 could lead to dollar debasement.
Gold has stayed well bid and close to yesterdays record highs overnight and this morning. $1,300/oz would seem "backed in the cake" in the coming days but there could be a pullback from the $1,300/oz level when reached. However, gold’s bull market looks set to continue until interest rates return to more normal levels and concerns about a double dip recession and sovereign debt issues abate.


Silver is currently trading at $21.05/oz, €15.74/oz and £13.43/oz.

Silver in USD – 40 Years (Quarterly). Click on image to view full size.

Platinum Group Metals

Platinum is trading at $1,624.50/oz, palladium is at $538/oz and rhodium is at $2,300/oz.

Mark OByrne


London Property Woes Continue As House Prices Fall to 2.5 Year Low

Gold and Silver Bullion - News and Commentary Gold prices notch fifth week of gains in a row (MarketWatch.com) Gold notches 5th week of gains, palladium hits record (Reuters.com) London Housing Woe Endures as Prices Drop to 2 1/2-Year Low (Bloomberg.com)[...]


Goldnomics Podcast - Gold, Stocks, Bitcoin in 2018. Everything Bubble Bursts?

Goldnomics Podcast - Gold, Stocks, Bitcoin in 2018. Everything Bubble Bursts?  [iframe sandbox="allow-popups allow-same-origin allow-scripts" src="//player.blubrry.com/id/29580649/#time-0&darkOrLight-Light&shownotes-ffffff&shownotesBackground-444444&download-ffffff&downloadBackground-003366&subscribe-ffffff&subscribeBackground-fb8c00&share-ffffff&shareBackground-1976d2" width="300px" height="138px"] Press play to listen to podcast In this our first GoldNomics podcast we take a look at the major financial market themes[...]


Up to 95 Percent of Cryptocurrencies ‘Will Drop to Zero’ – GoldCore

Gold and Silver Bullion - News and Commentary Gold prices inch up as dollar hits 3-yr lows (Reuters.com) Dollar stoops to three-year low, euro shakes off Merkel coalition concerns (Reuters.com) Gold rebounds and rises to $1340 as USD slides (FXStreet.com) Bitcoin[...]