Gold Trades Higher as Japan, UK and US Face Fiscal Abyss
Today’s AM fix was USD 1,658.75, EUR 1,259.68 and GBP 1,031.37 per ounce.
Yesterday’s AM fix was USD 1,655.25, EUR 1,247.65 and GBP 1,022.96 per ounce.
Silver is trading at $30.16/oz, €22.97/oz and £18.79/oz. Platinum is trading at $1,533.70/oz, palladium at $701.00/oz and rhodium at $1,040/oz.
Gold climbed $4.10 or 0.25% in New York yesterday and closed at $1,664.20/oz. Silver slipped to $29.685 in London, but it rose to a high of $30.466 in New York and finished with a gain of 0.8%.
Currency Ranked Returns in US Dollars – (Bloomberg)
Gold pared back early gains and edged down on Friday and tick tock goes the US “fiscal cliff” clock as time is running out for the somewhat irrelevant New Year’s deadline.
Gold bullion prices are on target for their first weekly gain in a month after the sharp fall in December (-3%) led to bargain hunters buying the dip. Gold bottomed on December 29th last year prior to very strong gains in January 2012 and we believe a similar pattern may be seen again this year.
The yellow metal looks set to rack up its 12th straight year of gains on low to zero interest rates, concerns of the eurozone debt crisis and diversification into bullion by central banks.
2013 should see global gold demand grow on further strength from China and a recovery in India, helping the precious metal continue its bull run into its 13th year, according to the World Gold Council.