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Today’s AM fix was USD 1,760.00, EUR 1,360.33 and
GBP 1,088.03 per ounce.
Yesterday’s AM fix was USD 1,774.50, EUR 1,361.44 and GBP 1,092.54 per
ounce.
Silver is trading at $34.31/oz,
€26.61/oz and £21.28/oz. Platinum is
trading at $1,619.50/oz, palladium at $663.50/oz and rhodium at $1,225/oz.
Gold fell $0.10 or 0.01% in New York yesterday and
closed at $1,770.50. Silver hit $34.958 in Asia and fell to $34.27 in early
New York trade and it then bounced back higher, but finished with a loss of
0.49%.
Gold edged down today due to dollar strength and profit
taking as speculators and some investors booked profits on 16% price gains
from this year’s low.
Gold continues to see smart money diversification as
central banks from the ECB and the Fed to the BOJ have all announced
‘stimulus’ or money debasement measures which has led investors
to seek gold as an inflation hedge.
All eyes will be on China as perhaps the next to
announce action after today’s data showed further contraction in its
manufacturing sector for the 11th consecutive month.
The UK will then follow and then other central banks
may announce their own measures as competitive currency devaluations or
currency wars intensify in the coming months.
We have seen consecutive weeks of bullish strength in
the gold and silver markets. Gold has completed what is known as a
‘Golden Cross’ and silver is poised to complete one in the coming
days.
A ‘Golden Cross’ occurs when not only the
current price, but also shorter-term moving averages such as the 50 day
moving average “cross” or rise above the longer term 200 day
moving average.
Gold’s 50 day moving average (simple) has risen
to $1,651/oz and is now comfortable above the 200
day moving average (simple) at $1,645/oz and
accelerating higher.
Silver’s 50 day moving average (simple) has risen
to $29.86/oz and will soon challenge the 200 day
moving average (simple) at $30.47/oz.
These are important indicators of longer term technical
strength and in conjunction with the recent positive technical picture are bullish.
The 18 months of sideways-to-lower price action has
“built a base”, a very large foundational base, in markets that
are in the middle of two of the longest and strongest bull markets in
history.
It is another indication that both markets are capable
of moving higher in the coming months.
John Bollinger the president of BollingerBands.com said
in January that “the golden cross is a great tool in a big, roaring
bull market, like the bull market from 1982 to 1998, when it tells you when
you’re supposed to be in the market and tells you periods in which the
risk is somewhat higher of corrections and such,” he said.
Gold and silver are in such secular bull markets and
the combination of these long term bull markets, the recently trending higher
markets and the 'Golden Cross' is important technically.
The last time there was a 'Golden Cross' for gold was
in early February 2009 (see chart) and gold subsequently rose 103% in the
next two years.
Similar gains are quite possible today given the strong
fundamentals. Were gold to replicate those gains, it could see gold rise to
double today's value of $1,756/oz or to over
$3,500/oz.
Silver, too, saw a ‘golden cross’ in late
February 2009 when silver was trading at under $14/oz.
It subsequently surged 257% to over $49/oz in April 2011 for a 257% increase in just 2 years and
2 months. Given silver’s very strong fundamentals similar gains may be
seen in the coming months.
As ever physical bullion should not be bought in
expectation of capital gains. They have the potential to reward with massive
capital gains but they should be bought for diversification and financial
insurance reasons.
For breaking news and commentary on financial markets
and gold, follow us on Twitter.
NEWSWIRE
(Bloomberg) -- Swiss Monthly Imports, Exports of Platinum-Group Metals
The following is a table of monthly Swiss imports and exports of platinum,
palladium and rhodium. The figures include raw form or powder and
half-processed material, and were sent in an e-mail by the Swiss Federal
Customs Administration. Amounts are in kilograms. One kilogram equals 2.2
pounds.
Imports
August
2012 July 2012 Total 2012
Platinum 2,503 Kg 3,068 Kg 21,593 Kg
Palladium 822 Kg 1,331 Kg 13,329 Kg
Rhodium 3 Kg 34 Kg 121 Kg
Exports
August
2012 July 2012 Total 2012
Platinum 905 Kg 3,171 Kg 24,185 Kg
Palladium 345 Kg 1,772 Kg 29,545 Kg
Rhodium 0 Kg 25 Kg 45 Kg
(Bloomberg) -- Gold, Silver Futures in Shanghai
Retreat; Cash Bullion Declines
Gold for December delivery fell as much as 0.4 percent to 363.95 yuan a gram ($1,793.77 an ounce) on the Shanghai Futures
Exchange, and was at 364.24 yuan at 9:03 a.m.
Singapore time. December-delivery silver lost as much as 0.9 percent to 7,366
yuan per kilogram, before trading at 7,376 yuan.
Cash gold of 99.99 percent purity slid as much as 0.5
percent to 359.32 yuan a gram on the Shanghai Gold
Exchange, and last traded at 360.25 yuan. Volumes
for the benchmark contract on the country’s largest cash bullion market
were 3,309 kilograms yesterday, from 4,449 kilograms on Sept. 18.
(Bloomberg) -- CICC Raises Gold, Silver Prices Forecast
After QE3
Gold prices may rise to $1,850 and $1,950 an ounce at the end of 2012 and at
the end of 2013, respectively, as the U.S.’s quantitative easing
materializes and as lower real interest rates, weaker
US dollar and stronger investment demand will lift the
precious metal’s prices, the China International Capital Corp. Said in
an e-mailed report today.
Silver will outperform gold thanks to its higher price
resilience, the report said, without giving details.
(Bloomberg) -- Gold ETP Holdings Jump for 11th Straight
Day to Record
Gold holdings in exchange-traded products backed by the metal rose to a
record for the 11th straight session.
The amount jumped 10.86 metric tons to 2,517.15 tons,
data tracked by Bloomberg showed.
(Bloomberg) -- Credit Suisse Client Survey Sees Gold
Above $2,000 in a Year
Gold will be above $2,000 an ounce in one year, according
to 33 percent of about 160 clients surveyed by Credit Suisse Group AG.
Forty percent of the clients said commodities would be
at least 10 percent higher in a year, and 13 percent said they would be at
least 10 percent lower, according to the survey conducted yesterday and
provided to reporters in London today.
(Bloomberg) -- Zimbabwe Says Foreign-Owned Platinum
Mines Meet Ownership Law
Majority of foreign-owned mines comply with govt’s
plans to finalize transfer of majority stakes to local black investors,
Empowerment Minister Saviour Kasukuwere
says at National Indigenization and Economic Board conference in the capital,
Harare.
"The mining sector, that area is now
compliant,’’ Kasukuwere says. “Zimplats, Mimosa Platinum and Unki
Platinum are done deals”
NOTE: Mimosa Platinum is a joint venture between Impala
Platinum and Aquarius; Unki Platinum is owned by
Anglo American Platinum
(Bloomberg) -- Standard Chartered Says Gold Prices Will
Average $1,875 in 2013
Gold will average $1,875 an ounce next year, Standard Chartered Plc said in a report dated yesterday.
Cross Currency Table – (Bloomberg)
NEWS
Gold slips from six-and-a-half-month top, waiting
for China action - Reuters
Gold down as investors take profits
– Sydney Morning Herald
Gold futures gain after Bank of Japan move
– Market Watch
Gold Rises to 29-Week High on Stimulus by Central
Banks - Bloomberg
COMMENTARY
‘Golden
Cross’ May Signal Big Gold Gains Ahead - CNBC
Deutsche Bank: Gold Is Money- Zero
Hedge
The Trouble with Printing Money - GoldSeek
Monetary Schizophrenia In Germany
– Testosterone Pit
Embry - We’re Witnessing A Historic &
Frightening End Game – King World News
Mark
O’Byrne
Goldcore
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