Gold’s London AM fix this morning was USD 1,765.00, EUR 1,316.18, and GBP 1,113.28 per ounce.
Friday's AM fix was USD 1,778.50, EUR 1,328.23, and GBP 1,125.412 per ounce.
Currency Table – (Bloomberg)
Gold ticked higher initially in Asia before seeing slight price falls and that weakness has continued in European trading with gold lower in most currencies.
G20 nations rebuffed calls from the euro area to boost the IMF’s bailout fund and this may have contributed to the slip which was also seen in Asian and European equities, U.S. index futures, oil and other commodities.
Markets await US home sales which come out at 1500 GMT. Investors expect the ECB to inject another massive half a trillion euros to banks in the second tier of a three year long-term financing operation in the vain hope that this will allow European finance minister’s to solve the debt crisis.
At best it will bide time and it is a sign that debasement of the euro is set to continue with obvious inflationary implications.
Gold bullion prices gained 3% last week as concerns that the Greek bailout is another exercise in kicking the giant beer can down the battered road. Investors rightly expect further loose money policies which will support gold’s appeal as an inflation hedge.
Analysts are still bullish on gold especially with the very tense Middle Eastern situation and the crisis with Iran and Syria showing no signs of being resolved.
Gold Spot $/oz Daily – (Bloomberg)
The dollar is near a two- month low and the Japanese yen has fallen sharply in recent weeks, which has gold in yen at its highest since September 2011.
For the week of Feb. 21 gold futures and options are at their highest level in five months, US Commodity Futures Trading Commission data show.
Spot platinum, which rose to a five -month high at $1,731.50 and surged 5% last week, has fallen 0.4% to $1,701.24.
Reuters noted that South Africa's Impala Platinum had agreed to rehire thousands of miners sacked for an illegal strike that halted production for more than a month at the world's biggest platinum mine, a leading union said on Saturday.
There are conflicting reports from the IMF and Sweden’s central bank, the Riksbank, this morning about an increase in Swedish gold reserves. The IMF data on central bank demand in January showed that Sweden raised its gold reserves by 18.3 metric tons to 144 tons in January.
The data on the International Monetary Fund’s website was gold bullish showing continued demand for gold by central banks internationally. Belarus added 5 tons to reserves, Kazakhstan raised reserves by 7.6 tons and Turkey increased gold reserves by 4.1 tons.