Today’s AM fix was USD 1,360.00, EUR 1,015.38 and GBP 867.29 per ounce. Yesterday’s AM fix was USD 1,365.75, EUR 1,020.28 and GBP 871.29 per ounce.
Gold rose $4.70 or 0.34% yesterday, closing at $1,371.30/oz. Silver fell $0.16 or nearly 0.69%, closing at $23. Platinum rose $11.94 or .8% to $1,514.24/oz, while palladium was down $2.57 or .3% to $744.93/oz.
Premiums on the Shanghai gold exchange are robust at $21 over COMEX spot suggesting robust physical demand. Volumes in China remain high and volumes on Shanghai’s benchmark spot contract climbed to the highest in more than two weeks.
Assets in the SPDR, the biggest exchange-traded product, expanded for the fourth time this month which may also be supporting gold.
There continues to be confusion regarding when the U.S. Federal Reserve will begin to curb its radical and highly unorthodox $85 billion debt monetization program.
The Fed’s July minutes are released at 1800 GMT. Fed officials don’t have a consensus view and several Fed bank officials that have spoken in the press recently don’t even have voting rights.
As ever, it is best to watch what central banks do and not what they say. Monetary policies are set to remain ultra-loose for the foreseeable future despite any Fed ‘tapering’ or tinkering at the edges and this is bullish for gold.
India has no proposal to lease gold bought from the IMF according to India’s Economic Affairs Secretary, Arvind Mayaram. His comments came in a text message.
The influential in India, Hindu Business Line newspaper, had reported earlier that the government will consider leasing out 200 tons of gold bought from IMF in 2009, citing finance ministry officials it didn’t identify.
With strains in the LBMA gold market, further pressure may be being applied to India to now help with supply after their recent draconian attempted measures to restrict demand.
Russian gold holdings rose another 200,000 ounces in July and rose to 32.2 million ounces or 913 tonnes as of August 1st (according to Bloomberg figures).