Today’s AM fix was USD 1,693.00, EUR 1,295.14, and GBP 1,050.77 per ounce.
Yesterday’s AM fix was USD 1,703.00, EUR 1,300.79, and GBP 1,057.90 per ounce.
Yesterday’s AM fix was USD 1,703.00, EUR 1,300.79, and GBP 1,057.90 per ounce.
Gold
fell $3.10 or 0.18% in New York yesterday and closed at $1,693.60/oz.
Silver climbed to $33.24 then slid to $32.51, but finished after an
afternoon rally with a loss of 0.33%.
Physical
buying of gold bullion has increased on the dip, particularly in Asia,
and many are seeing these levels as a floor for prices.
The
massive consolidation seen in the last 16 months means that gold and
silver are now right on their long term moving averages (See charts
showing 100, 200 and 365 daily moving averages)
Gold
will revisit its record breaking form of the past four years in 2013
after gains were tempered this year by reduced jewelry demand.
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| Bloomberg Chart of the Day – Gold Poised For 12th Consecutive Gain |
Bloomberg's
'CHART OF THE DAY' shows gold climbed to records every year since 2008
until this year, with the all-time high still the $1,921.15 an ounce set
in September 2011.
Gold has consolidated on previous years gains this year and has risen another 8.2% so far in 2012.
Gold
bullion HYPERLINK will average a record $1,925 in the fourth quarter
next year, the median of 16 analyst estimates compiled by Bloomberg last
month show. This would be a return of 13% in 2013.
The
Federal Reserve said Oct. 24 it will maintain $40 billion in monthly
purchases of mortgage debt and probably hold interest rates near zero
until mid-2015.
Gold
rose 70% as the Fed bought $2.3 trillion of debt in two rounds of
monetary easing from December 2008 through June 2011. The Bank of Japan
and the European Central Bank have pledged more action and China has
approved a $158 billion subways-to-roads construction plan.
European
peoples struggle while their governments rack up huge debts and then
force unbearable austerity measures on them, as they continue to cheapen
the value of the single currency’s purchasing power. With little to no
extra cash to spend consumers can’t organically put extra money in their
struggling economies.
In nearly the 4th
year of the European debt crisis, it doesn’t take a rocket scientist to
figure out that the current policies are not working. People are
beginning to look at gold and silver as safer stores of value than paper
and electronic currencies.
 |
| Gold Spot $/oz, 2007-2012 – (Bloomberg) |
Gold
bullion is becoming many central banks safe haven again and it will
again become the public’s safe haven of choice in the coming years.
Investors,
hedge funds and institutions boosted assets in gold-backed
exchange-traded products to a record this year, holding more than the
official reserves of every nation except the U.S. and Germany. Investors
held a record 2,627 metric tons in gold ETPs on December 4, data
compiled by Bloomberg show.
Gold jewelry demand slumped 9.8% in the first nine months this year, World Gold Council data show.
Importantly,
gold has yet to exceed previous records when adjusted for inflation,
with its 1980 peak of $850 equal to $2,398 today, data compiled by the
Federal Reserve Bank of Minneapolis show.
This puts gold rise in price in recent years in context.
 |
| Silver Spot $/oz, 2007-2012 – (Bloomberg) |
Silver To Outperform Gold In 2013 – Morgan Stanley
Gold and silver remain Morgan Stanley’s ‘top picks’ for 2013. Morgan Stanley maintains its long standing recommendation to be overweight precious metals, analysts including Peter Richardson write in a report according to Bloomberg.
Morgan Stanley said the yellow metal may average $1,853/oz in 2013 – for a return of 9.5%.
Gold and silver remain Morgan Stanley’s ‘top picks’ for 2013. Morgan Stanley maintains its long standing recommendation to be overweight precious metals, analysts including Peter Richardson write in a report according to Bloomberg.
Morgan Stanley said the yellow metal may average $1,853/oz in 2013 – for a return of 9.5%.
Gold
investment demand will remain strong against weaker USD, low real
interest rates, central bank buying, enhanced geopolitical uncertainty.
Silver more volatile but cheaper safe-haven play than gold; expect silver to outperform gold in 2013.
Article Source: GoldSeek
Article Source: GoldSeek