Today’s AM fix was USD 1,299.25 EUR 937.48 & GBP 771.89 per ounce.
Yesterday’s AM fix was USD 1,299.00, EUR 938.58 & GBP 773.03 per ounce.
Gold rose $0.20 or 0.015% yesterday, closing at $1,303.10/oz. Silver gained $0.05 or 0.25% yesterday to $19.67/oz.
Gold in U.S. Dollars - Year To Date, 2014 - (Thomson Reuters)
Gold traded near $1,300 an ounce, set for a weekly drop, as investors weighed tentative signals of a U.S. recovery against the risk of conflict in Ukraine and geopolitical tension. Silver, platinum and palladium are all marginally lower.
Prices reversed losses after Ukraine accused Russia of fueling terrorism in its eastern provinces. The metal is 1.3% lower this week and may snap a two-week advance. However, shorts will be nervous heading into a long holiday weekend with the potential for headline risk.
Gold bullion should be higher as the dollar is under pressure after Federal Reserve chief Janet Yellen yesterday reiterated that ultra-accommodative monetary policies will continue. This will manifest in interest rates staying near zero percent and continuing currency debasement.
Gold consolidated yesterday around the 200-day simple moving average and found some support around $1,297/oz, the 61.8% retracement of gold's rise in April.
Assets in the largest gold-backed exchange-traded product sank the most this year. New York's SPDR Gold Shares, reported outflows of 8.39 tonnes on Wednesday, the largest one day decline in its holdings since December 23. That has erased almost its entire inflow for the year, with its holdings currently at 798.4 tonnes, against 798.22 on December 31.
Gold in euros continues to consolidate around the €1,000/oz mark and looks set to rise in the coming months. The euro’s strength is not merited given the appalling fundamentals of Italy, Spain, Portugal and Greece. As soon as the Eurozone debt crisis rears its ugly head again, and it will, gold will again protect against euro weakness.
Credit to goldcore.com
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