Published in Market Updates  Precious Metals Update 


Gold Over €1,056/oz on Concerns of European Contagion Spreading

Gold

Concerns that the European debt crisis will spread has seen equities, bonds and the euro come under pressure and gold rise in all currencies. With the euro having fallen to 1.30 against the dollar, gold has risen to near record nominal highs over €1,056/oz. Gold is also higher in Swiss francs, Japanese yen and sterling and appears to be targeting £900/oz (GBP).


Published in Market Updates  Precious Metals Update 


Silver Targets $30 on Investment Demand - Risk of Contagion Increases

Gold

Gold is steady in dollars and pounds but has risen again in euros as the dollar has fallen in world markets. Gold is being supported by renewed concerns of contagion in eurozone debt markets and the risk that tensions in the Korean peninsula will escalate into a war. The hesitant risk appetite of recent days has dissipated again on these concerns. This is seeing falls in equity markets internationally and gold being supported – particularly in euro terms. 


Published in Market Updates  Precious Metals Update 


Gold Well Below Inflation Adjusted 1980 High in Deutsche Mark

Gold

Gold has remained firm despite an increase in risk appetite as seen in the bounce in equity markets in Asia and Europe so far this morning. While Korean concerns have abated for now, eurozone "peripheral" debt is under pressure again pushing spreads with bunds to, or in some cases close to, euro-era highs. The 10-year benchmark bond of Ireland is now up 6 basis points at 8.72%, while Portugal and Spain are up 7bp to 6.87% and up 11bp to 5.14%, respectively. This has seen gold remain firm in major currencies and remain near nominal highs in euros.


Published in Market Updates  Precious Metals Update 


Gold up in Euros and Pounds as Eurozone and North Korea Concerns Continue

Gold

Gold is marginally lower in dollar terms this morning while it has risen in pounds and sharply in euro terms again to over €1,034/oz. Concerns of contagion in the eurozone are increasing and show that markets are shifting their focus from Ireland to sovereign risk in Portugal, and most worryingly Spain, as seen in record bond spreads. 

Gold is currently trading at $1,374.99/oz, €1,031.50/oz, £871.68/oz.


Published in Market Updates  Precious Metals Update 


"Yellow Elephant in the Room" Consolidates in Cautious Trade Ahead of the G20 Summit

Gold

Caution has marked trading in most markets today at the start of the G20 summit in Seoul. Gold is marginally lower in dollar terms but is higher in euro terms due to sovereign debt issues in Ireland and other periphery eurozone states. Gold is also higher in yen which was have fallen sharply today prior to the G20 summit.

Gold is currently trading at $1,397.05/oz, €1,017.66/oz, £869.14/oz.


Published in Market Updates  Precious Metals Update 


World Bank Chief Calls For Return to Modified Gold Standard

Gold

This morning, gold hit a new record nominal high in dollar terms at $1,398 an ounce and gold in euro terms surged to reach €1,000. A subsequent bounce in the dollar and profit taking saw gold fall from the record nominal high in dollar terms but it remains near €1,000/oz. There is increasing concern about Ireland and other periphery EU nations' worsening fiscal and economic situations and possible ramifications for the European Monetary Union and the euro. Silver has risen to over €19/oz (see Cross Currency Table below).


Published in Market Updates  Precious Metals Update 


Gold Higher as Risk of Competitive Currency Devaluation and Debasement Underestimated

Gold

Gold fell initially after the QE2 announcement yesterday prior to recovering and it then rose steadily in after hours Asian and again in early European trading. Gold has risen to $1,362/oz due to the dollar falling and oil and commodities rising significantly in the aftermath of the announcement of the new $600 billion of quantitative easing.

Gold is currently trading at $1,362.30/oz, €957.21/oz, £843.20/oz.


Published in Market Updates  Precious Metals Update 


QE2, Sovereign Debt and Chinese Demand Projected to Double in a Decade

Gold

Gold and silver rose again yesterday with silver reaching a new nominal 30 year high. Both are higher in trading today as markets await concrete data regarding the scale of the second phase of quantitative easing. QE2 may already be priced into the markets but a smaller than expected figure could see money come off the table. A higher than expected figure could see further gains in all markets and further increase the risk of asset bubbles.

Gold is currently trading at $1,355.40/oz, €966.42/oz, £841.65/oz.


Published in Market Updates  Precious Metals Update 


Concerns that QE2 Will Create Virulent Inflation or Stagflation

Gold

Gold prices are higher today as the dollar is again under pressure ahead of the US elections and the Federal Reserve's decision regarding the scale of QE2. Oil prices above $83 a barrel is supporting gold and oil prices are up 9% in the last 30 days which will contribute to increasing inflation pressures.

Gold is currently trading at $1,357.30/oz, €971.72/oz, £849.96/oz.


Published in Market Updates  Precious Metals Update 


China's Diversification Plans and QE2 See Gold Remain Robust

Gold

Gold and silver rose in all currencies as markets opened in Asia, prior to giving up those early gains. However, in trading in London this morning both precious metals have risen and are higher as the dollar has come under pressure again. Equity markets are mixed in Europe despite most Asian markets closing positively - except for the Nikkei which fell 0.52%.