-- Published: Wednesday, 30 July 2014 | Print | Disqus
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…”
“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.”
“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."
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-- Published: Wednesday, 30 July 2014 | E-Mail | Print | Source: GoldSeek.com