Gold’s London AM fix this morning was USD 1,618.00, GBP 1,047.38, and EUR 1,266.54 per ounce.
Yesterday’s AM fix was USD 1,621.00, GBP 1,045.67, and EUR 1,045.67 per ounce.
Cross Currency Table
Gold prices are marginally higher after the 3% gain seen last week. Gold tentative gains come despite the dollar gaining strength due to the European crisis. Investors and traders will keenly follow the debt auctions this week in Italy and Spain and a poor or failed auction could see a sharp bout of renewed risk aversion. President Sarkozy and Chancellor Merkel are meeting in order to boost employment with in debt ridden Eurozone states but markets will not be impressed by more words from politicians.
Precious metals analysts expect gold prices to rise for a 12th year in a row and to reach a record high in 2012, but are less optimistic for silver and platinum, according to a survey by the London Bullion Market Association (LBMA).
Chinese New Year demand is picking up and can be seen in the increased volumes and premiums on the Shanghai Gold Exchange (SGE) where recent days has seen the second and third highest volumes on record (for 0.9995 and 0.9999 refined product). Jewellers and dealers are stocking up with jewellery, coins and bars ahead of the Dragon New Year celebrations.
New Year’s Day is the 23rd and markets will close for the subsequent week when gold demand is expected to be as voracious as last year due to concerns about the Chinese economy, stock and property markets and as the Year of the Dragon is a particularly auspicious year.