Today’s AM fix was USD 1,742.75, EUR 1,352.23 and GBP 1,081.71 per ounce. Yesterday’s AM fix was USD 1,731.00, EUR 1,352.77 and GBP 1,081.33 per ounce.
Silver is trading at $33.94/oz., €26.39/oz. and £21.17/oz. Platinum is trading at $1,649.00/oz., palladium at $674.70/oz. and rhodium at $1,025/oz.
Gold rallied to a six-month high in dollars after Germany’s top court ruled that Germany can ratify the €500 billion ESM bailout fund but with strict conditions.
Gold ticked slightly higher after the German decision – rising from just under €1,350/oz. to €1,354/oz. prior to gradually giving up those gains. Equities have seen tentative gains but silver is the largest beneficiary so far – having briefly risen above $34/oz. or 1.5%
Cross Currency Table – (Bloomberg)
The FCC court stipulated that a cap of 190 billion euros be set on German liabilities before ESM ratification, unless parliament decides to back extra funds. German liabilities are to be capped which is important and means this is not the bazooka that many market participants were hoping for.
German bunds and UK gilts (10 year) sold off quite a bit with yields rising sharply to 1.64% and 1.83% respectively. ESM concerns are weighing on bunds and UK downgrade concerns on gilts.
The announcement came on the heels of ECB President Jose Manuel Barroso who said that the ECB should take a core role in supervising all banks within the euro zone. "The Commission is presenting legislative proposals for a single European supervisory mechanism. This is a quantum leap – the stepping stone to a banking union," he said. "The single supervisory mechanism proposed today will create a reinforced architecture, with a core role for the European Central Bank.