Today’s AM fix was USD 1,297.50, EUR 968.43 and GBP 766.21 per ounce.
Yesterday’s AM fix was USD 1,307.50, EUR 972.84 and GBP 770.39
per ounce.
Gold fell $4.50 or 0.34% yesterday to $1,300.60/oz and silver slipped
$0.02 or 0.1% to $20.60/oz.
Silver for immediate delivery rose 0.2% to $20.61 an ounce in
London. Platinum was 0.2% higher at $1,485 an ounce. Palladium gained 0.2% to
$882/oz and appears to be consolidating close to a 13 year nominal high of
$889.75.
Gold is flat in London this morning after gold
in Singapore was also tethered to the $1,300/oz level overnight. Futures
trading volume declined after recent increases and was 31% below the average
of the last 100 days, Bloomberg data shows.
Gold in U.S. Dollars - 50, 100, 200 Simple Moving Averages (Thomson
Reuters)
Gold is testing support at the 100 day simple moving average at $1,299
currently and below that there is support at the 50 and 200 daily moving
averages at $1,294/oz and $1,285/oz respectively.
Premiums for gold
bars in India have fallen again due to lacklustre demand in India.
Premiums in top buyer China were steady at about $2 to $3 an ounce. Middle
Eastern demand may have picked up due to geopolitical risk and the festival
of Eid is seeing another mini gold rush for jewellery in the Middle East as
lower prices attracts buying.
Geopolitical risk remains very high but has not been reflected in precious
metal prices as of yet.
The Middle East remains a powder keg as increasingly are relations between
the U.S., the EU and Russia.
Hamas ruled out a truce in the Gaza Strip until Israel lifts its blockade
and bombing of the Palestinian territory, as the Israeli military’s bombing
of Gaza intensified.
The U.S. and European Union sought to put more pressure on Russia by
targeting banking, energy and defense industries. These measures appear to be
an attempt to cripple the Russian banking sector and economy and will likely
be met with retaliation from Russia.
We appear to be on the cusp of a full blown economic war and economic wars
tend to be the forerunner of actual war. Given the nuclear capabilities of
both sides, politicians would be better suited calling for calm and
negotiations rather than constant escalation.
If the Russian banking system is crippled, a Russian response could
include cyber war targeting western banks and market exchanges including
stock markets. A cyber and financial war poses real risks to western
investors and indeed savers that is as of yet not appreciated.
"Gold Could Go To Infinity" - Ron Paul
Dr Ron Paul, the popular Presidential candidate and America and the
world's most popular libertarian voice, told CNBC yesterday that he “still
believes in gold” and that “gold could go to infinity.”
Former U.S. Representative Dr Ron Paul told CNBC's Jackie DeAngelis and the
Futures Now Traders that the long-term case for gold remains firmly intact.
Dr Ron Paul:
“Timing is the only thing. I remember watching gold when it was 35 dollars
an ounce and we thought if it ever hit a hundred dollars, the world would
come to an end. And then a thousand dollars, so; no, it's good as long as we
continues to do this <print money> , you know, it could go to infinity
because when people just leave the dollar, who knows what …”
“But that won't happen if we finally wake up and do something. But
if we can keep this together, if the money managers can keep it together and
it doesn't collapse, yes, gold is gonna keep creeping up, but, you know, as
weak as gold looks right now, it's up a hundred dollars for this year so…”
Jackie DeAngelis:
“It's roughly I think up 8% year-to-date. It's not a horrible move for
gold but I think a lot of people were expecting to see a little bit more,
especially with the instability that we're seeing in terms of the
geopolitical situation. A lot of conflict around the world -- you'd expect
gold to be higher right now.”
Ron Paul:
“Yeah, but if you understand the subjective theory of value, you don't get
too concerned about that because, yes, increasing the money supply weakens
the dollar and a weaker dollar raises the price of gold and it's a long term
measurement. But you can't measure, you can't say that the money supply went
up a certain amount, and gold is going to go up, so there's a subjective
element in that.”
“But long term...and economic law says, if you keep printing a lot of
paper money, the value of that dollar and currency will go down, and things
and most prices will go up and indeed gold always goes up against that
currency.”
“But you don't, I don't get in the business of saying in a year
or two or three it's going to be two or three or four thousand dollars
because it really challenges the basic fundamental beliefs of the Austrian
school, to make these kinds of predictions.”
The interview about gold can be watched here
In another interview with CNBC, Dr Paul reaffirmed his view that the
nation's monetary and fiscal policies would result in massive inflation. He
warned of a stock market crash and of the risk that currency debasement will
lead to the continuing devaluation of the dollar.
Ron Paul has long said America should "end the Fed," and he made
that case once again on Tuesday.
** Record
Low Gold Bar (1 oz) Premiums **
"One thing you have to do is get rid of the Fed, because of the Fed
“spin” that leads to volatility in markets. Referring to the statements and
spin by Federal Reserve governors, now Janet Yellen, he said that in fact
it is a “very inefficient way to operate a market, to have one
individual make one statement, and put so much weight on it.”
“In short term, it's very, very real, because people are going to make it
or break it, you know, on this interpretation. But that has nothing to do
with the free market, nothing to do with building capitalism, and savings,
and the things necessary to have a growing economy."
