Today’s AM fix was USD 1,734.00, EUR 1,354.05, and GBP 1,089.06 per ounce. Yesterday’s AM fix was USD 1,723.25, EUR 1,349.66, and GBP 1,083.67 per ounce.
Silver is trading at $33.21/oz., €26.02/oz. and £20.94/oz. Platinum is trading at $1,580.10/oz., palladium at $638.90/oz. and rhodium at $1,055/oz.
Gold climbed $20.20 or 1.18% in New York yesterday and closed at $1,732.10. Silver surged to a high of $33.205 and finished with a gain of 2.7% while oil surged 2.6%.
Gold is flat today and appears to be consolidating on yesterday’s gains. Conflict in the Middle East and Moody’s downgrade of France’s AAA rating will support gold. Indeed, the Moody’s downgrade of France shows how the global debt crisis is spreading to Europe’s core with obvious ramifications for the euro.
Oil prices surged yesterday as violence intensified in the Israel-Gaza conflict, sparking fresh concern about supplies from the crude oil rich Middle East should the conflict escalate and engulf other Middle Eastern nations such as Syria and Iran.
New York's main contract, West Texas Intermediate (WTI) for delivery in January, soared 2.6% or $2.36 from Friday to settle at $89.28 a barrel.
This is strengthening safe haven demand for gold bullion.
The Greek parliament approved laws yesterday to enforce budget limits and guarantee privatization proceeds will be used to repay debts before the Eurozone Finance Minister’s meet today about Greece in Brussels.
Ultra loose monetary policies continue to support gold. The Bank of Japan is expected to keep its monetary policy unchanged today which should see the yen continue to weaken against gold.