Today’s AM fix was USD 1,204.00, EUR 977.59 and GBP 767.42 per ounce. Yesterday’s AM fix was USD 1,203.25, EUR 975.24 and GBP 768.95 per ounce.
Gold in EUR - 2014 YTD (Thomson Reuters)
Gold consolidated above $1,200 again today ahead of today’s ECB rate meeting and despite the dollar reaching a 5 year high.
Gold for immediate delivery fell 0.5% to $1,204 in late morning trading in London. Silver for immediate delivery added 0.5% to $16.50 an ounce. Platinum rose 1% to $1,237 an ounce. Palladium gained 0.5% to $800.75 an ounce.
Today, the European Central Bank (ECB) will give its official interest rates at 1:45 p.m. CET. Following this Draghi will hold a press conference in Frankfurt from the central bank’s new premises in the city’s east end at 2:30 p.m. CET. Starting next month, the ECB will switch to a six-week cycle of monetary-policy decisions, with the first meeting on January 22.
Last month the head of the ECB, Mario Draghi pledged to raise inflation in the euro zone “as fast as possible”. However, Draghi now faces a stalling from multiple members of the Governing Council. Amid German worry over bond-buying and a wait-and-see approach by his own vice president, Draghi is looking for consensus on what further action the ECB can take and when.
Demand from Asian store of wealth buyers has been strong again this week. India, the world's second biggest gold buyer after China, last week scrapped a rule mandating traders to export 20% of all gold imported into the country.
Gold trading on China’s largest physical bullion bourse is already exceeding last year’s record volume as the world’s biggest gold buyer seeks to exert its influence on the global market according to Bloomberg.
The volume of all contracts on the Shanghai Gold Exchange (SGE), including those in the city’s free-trade zone, was 12,077 metric tons in just the 10 months to October, compared with 11,614 tons during all of 2013, according to data on the bourse’s website. This may climb to 17,000 tons by the end of the year, the exchange’s Chairman Xu Luode told a conference in Shanghai today.