- Today’s AM fix was USD 1,284.50, EUR 959.16 and GBP 762.99 per ounce.
- Yesterday’s AM fix was USD 1,295.00, EUR 966.92 and GBP 767.36 per ounce.
Gold fell $14.60 or 1.13% yesterday to $1,282.10/oz and silver slipped $0.25 or 1.21% to $20.37/oz.
Palladium was the only one of the major precious metals to rise in July, climbing 3.2% for its sixth month of gains. Platinum was down 1.8%, silver down 3% and gold down 3.4%.
Silver for immediate delivery was little-changed in London at $20.40 an ounce. Platinum fell marginally and was at $1,463/oz. Palladium was marginally lower at $871/oz and remains near the 13 year nominal high of $889.75/oz.
Gold In U.S. Dollars - 10 Years
Gold is marginally higher in London this morning and overnight in Singapore, gold remained in a tight range between $1,280/oz and $1,285/oz. With Asian trade limited to a narrow band of just $5.00, volumes traded in late trade on Globex were low at just 9,000 lots (GCZ4).
Futures trading volume in London declined and was 31% below the average of the last 100 days. Traders are waiting for the non-farm payrolls data later today.
Markets are jittery and global stock markets are seeing losses with all U.S. indices down yesterday and Asian and European indices down today. Economic and trade war with Russia, conflict in the Middle East and the risk of contagion in Portugal and from Argentina’s default are weighing.
Institutional money is being allocated to gold again as seen in the ETF numbers. Gold ETFs saw their largest monthly inflow in July since December 2012, according to Reuters data, having added 7.4 tonnes to their holdings. Gold ETP holdings hit a four-year low in mid June at 1,491 tonnes, but have since seen some inflows.
Premiums for gold bars in India remain near recent lows due to weak domestic demand. The premium on Wednesday fell to $5-$6 per troy ounce compared with $10 per troy ounce during the last week.
Gold prices have been in lockdown in a range-bound month. The spread between July's high and low was just $57.54. This is the narrowest in seven years - the June 2007 range was $54.70. This was right before the global financial crisis.
In 2007, gold began to move up aggressively in September (see chart above). On September 1, it was trading at $672/oz. By early March 2008, it was over $1,000/oz - for a gain of nearly 50% of just 7 months.