(IBTimes) - Gold's London AM fix this morning was USD
1,580.75, EUR 1,221.69 and GBP 980.98 per ounce.
Yesterday's AM fix was USD 1,590.00, EUR 1,228.37, and GBP
987.39 per ounce.
Gold rose $3.00 or 0.18% in New York yesterday and closed at
$1,594.00/oz. Gold ticked lower in Asia and in Europe and
breached yesterday's intraday low of $1,580/oz.
Cross Currency Table - (Bloomberg)
A close below $1,580/oz could see gold test support at
$1,523/oz and $1,533/oz - the lows in December and September 2011
Gold fell after shares in Asia were hit by JPMorgan's massive
$2 billion loss, political turmoil in the euro zone and also by
weak economic data from China. The JP Morgan loss may be higher
than $2 billion and could lead to sharper sell offs in markets
which could lead to further gold weakness.
However, the JP Morgan loss is gold positive as it shows how
little reform there has been of Wall Street and the global
financial system which continues to resemble a casino. It also
shows that systemic risk remains.
Gold tracked equities lower despite the JP Morgan loss,
deepening worries about Europe's debt crisis, Chinese economy
concerns and their impact on global economic growth.
Safe haven gold is again showing short term correlation with
risk assets, with sell offs seen across risk assets such as
equities, industrial metals and oil this week. It seems likely
that some more speculative players are again selling gold on the
COMEX to cover losses suffered in other markets.
Gold is set to fall by more than 3% this week, the deepest
drop since early March, however there are technical and
fundamental factors that suggest we may be near an intermediate
There has been far less selling of physical bullion this week
and indeed a small degree of buying the dip.
In the physical market, weaker prices led to buying from
Thailand, Indonesia and also main consumer India. Reuters reports
that premiums for gold bars in Singapore edged up to $1.10 to
spot London prices from $1.0 quoted on Thursday.
While gold prices have had 11 consecutive years of price gains
one would not know it from the lack of popular media coverage
(and often unbalanced and uninformed), and lack of participation
on behalf of the western public.
Gold in Euros - Daily (1 Year)
However gold is set for a 12th consecutive year of gains as
investor demand is likely to be spurred by unfolding eurozone
sovereign debt crisis, according to the World Gold Council
"We believe this will be the 12th year of a bull run by the
end of this year," Marcus Grubb, managing director for investment
at the industry funded WGC, told a news briefing.
Gold 'Will Go To $3,000/oz' - David Rosenberg
Highly respected economist and strategist David Rosenberg has
told that Financial Times in a video interview (see below) that
gold "will go to $3,000 per ounce before this cycle is over."
Markets are repeating the downturns of 2010 and 2011 and it is
time to search for safety, David Rosenberg of Gluskin Sheff tells
James Mackintosh, the FT Investment Editor.
Rosenberg sees a "very good opportunity in gold" as it has
corrected and seems to be "off the radar screen right now".
He sees gold as a currency and says the best way to value gold
is in terms of money supply and "currency in circulation."
As the "volume of dollars is going up as we get more
quantitative easing" he sees gold at $3,000 per ounce.
Mackintosh says that Rosenberg's view is a "pretty bearish
To which Rosenberg responds that it is "bullish view on gold
and gold mining stocks." Mackintosh says that it is "bearish on
Rosenberg says that it is not about being "bullish or
bearish," it is about "stating how you view the world" and he
warns that the major central banks are all going to print more
money and keep real interest rates negative "as far as the eye
This is "critical" as one of the key determinants of the gold
price are real short term interest rates.
The longer they stay negative "the longer the bull market in
gold is going to be."
Rosenberg sums up that "this is not about being bullish or
bearish, it is about how do we make money for our clients."
The interesting interview can be watched
Gold in GBP - Daily (1 Year)
For more information, go to