Cross Currency Table – (Bloomberg)

Gold edged up $1.60 or 0.16% in New York yesterday and closed at $1,593.00/oz. Gold edged slightly higher in Asia but has now fallen and continued this pattern in European trading where gold is now near $1,576/oz level off about 1% from yesterday’s close in New York.  Gold is about 1% lower in most currencies but only 0.4% lower in Japanese yen after the Japanese downgrade.

Gold succumbed to profit taking after the nearly 5% surge of recent days which saw gold rise from $1,527/oz to $1,599/oz yesterday.

Market watchers await the European Union summit with regard to the possibility of yet another new plan to solve the area’s debt crisis. Today, during an informal EU gathering, French President Francois Hollande is expected to push for mutualised European debt, an idea that Merkel has opposed.

Resistance is now at the $1,600/oz and support at $1,527/oz – the low from last Wednesday.

Today’s data, 1400 Eurozone consumer confidence for May, 1400 US existing home sales and 1500 Bank of Japan’s interest rate decision.

Swiss Parliament Examines ‘Gold Franc’ Currency Today
A panel of the Swiss parliament is discussing the introduction of the parallel ‘Gold franc’ currency.

Bloomberg has picked up on the news which was reported by Neue Luzerner Zeitung .

The Swiss parliament panel will discuss a proposal aimed at introducing a new currency, or a so-called gold franc.

Under the proposal, which will be debated in the lower house’s economic panel in Bern today, one coin in gold would be worth about 5 Swiss francs ($5.30), the Swiss newspaper reported. The Swiss franc would remain the official currency, the paper said.

The proposal may lead to a wider debate about the Swiss franc and the role gold might again play to protect the Swiss franc from currency debasement.

The initiative is part of the “Healthy Currency” campaign which is being promoted by the country’s biggest party – the conservative Swiss People’s Party (SVP).

Gold Daily Chart – USD – (Bloomberg)

The party is reflecting Swiss people’s concerns about the Eurozone and global financial turmoil and the growing risk of inflation and seeking to reverse the government’s current policy on gold – which is that the Swiss franc is a fiat currency, like all modern currencies and is not backed by gold but by the promises of politicians and bankers.

Buying gold bullion coins and bars and gold certificates requires professional advice in Switzerland and some other countries and banks are the largest providers.  Even the smallest gold coins can cost a few hundred francs.

One of the new gold francs, on the other hand, with a gold content of 0.1 grams, could be purchased for just 5 francs (at current prices) and would mean that gold became more widely owned by ordinary people in Switzerland and could even become a medium of exchange as is happening in Utah, Montana, Missouri, Colorado, Idaho and Indiana in the U.S where gold has become legal tender again or is set to become legal tender again.

OTHER NEWS
(Bloomberg) -- Silver Imports by China Were 236.9 Tons in April, Customs Says
 Silver imports by China were 236.9 metric tons in April, according to data released by the customs agency today. That compares with 255.5 tons in March. Platinum imports were 6.9 tons in April, compared with 7.4 tons a month earlier, data showed. Palladium imports were 2.2 tons, data showed.

 (Bloomberg) -- Platinum may rise above $2,000 an ounce - Merrill
Platinum may rise above $2,000 an ounce by 2014 once the global economy stabilizes, Bank of America Merrill Lynch said.

Miners in South Africa, which accounts for 79 percent of world supply, are not profitable, Michael Widmer, an analyst at the bank, said in an e-mailed report today.

(Bloomberg) -- Japan; Fitch downgrades Japan to A+; Outlook Negative

 (Bloomberg) -- U.S. Mint Silver Coin Sales in May Exceed April Total
The U.S. Mint’s sales of American Eagle silver coins have reached 1.54 million ounces so far in May, according to figures from the Mint’s website. That tops April’s sales of 1.52 million.

(Bloomberg) -- Economist Dennis Gartman Says He’s Buying More Gold in Euros
Economist Dennis Gartman is adding to his gold holdings priced in euros, he wrote today in his daily Gartman Letter.

(Bloomberg) -- Russia April Gold Holdings Unchanged at 28.8 Million Troy Ounces
Russia’s central bank kept its gold holdings unchanged at 28.8 million troy ounces last month, according to a statement published on its website today.

The stockpile was valued at $47.9 billion as of May 1, compared with $47.8 billion a month earlier, Bank Rossii said.

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

NEWS
Gold stalls below $1,600/oz; EU summit eyed - Reuters

China trumps India to lead oriental gold rush – The Irish Times

Facebook Tumbles Below IPO Price On Second Day Of Trading - Bloomberg

U.S. lets China bypass Wall Street for Treasury orders - Reuters

JP Morgan traders’ losses double to £4.4 billion –London Evening Standard

COMMENTARY
Commentary: Is a central bank buying? - MarketWatch

Customer Shocked “Allocated” Gold Not in Swiss Bank – King World News

Arensberg: Trading data indicates bottom for monetary metals – Got Gold Report

How JPMorgan Is Like Enron - Bloomberg

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-- Posted Tuesday, 22 May 2012 | Digg This Article