G20 Finance Ministers Meeting and LBMA Precious Metals Conference

Gold
Gold has experienced a strong opening yesterday morning and is currently trading at $1.052/oz, $8 higher than its close on Friday. In EUR and GBP terms, gold has risen and is trading at €712/oz and £643/oz respectively.

Gold fell 1.4% last week but rose nearly 4% in the month of October which is traditionally a poor month for gold (unlike the seasonally stronger months of November and December). Gold looks set to make gains this week on growing concerns about the health of the US economic recovery and possible further falls in equity markets internationally.

Gold has in recent years tended to fall in the week of options expiry and then rise the following week. Gold has also tended to come under pressure in the week of US government bond auctions and with the massive bond auction of last week over and options expiry over, gold may again eke out gains this week.

Gold up 4% in October

There is a raft of data in the US this week including Construction Spending, the ISM Index, and pending Home Sales on Monday, Factory Orders on Tuesday, ADP Employment, ISM Services, and a FOMC Rate Decision on Wednesday, Productivity and Initial Jobless Claims on Thursday, and Wholesale Inventories, Consumer Credit, and October’s jobs data on Friday. Gold may also be influenced by meetings at major central banks, including the Federal Reserve and European Central Bank, as well minutes from the past meetings of others.

The G20 finance ministers meeting in Scotland later in the week may be important both from a monetary and fiscal policy point of view. Should the Chinese, Russian, some Europeans and others voice further concerns about the US dollar and US fiscal and monetary policy then the dollar will come under pressure boosting gold. Growing concerns about the dollar may not be the primary issue discussed in public but countries with currencies that have appreciated and are suffering from deflationary pressures are likely to air their concerns behind closed dollars. The crucial issue is the need for fiscal stimulus withdrawal and how well large debtor nations can cope with such withdrawal given worrying recent data. The St. Andrews meeting will also see whether the unity shown by the G20 during the worst of the crisis will continue now that national economic growth rates are diverging markedly and this could see creditor nations particularly in Asia become more assertive in flexing their growing political and economic muscle.

Some of the major gold players will be attending the LBMA Precious Metals Conference also taking place in Edinburgh (yesterday, Monday and Tuesday) and this could see a decline in volumes. The directors of GoldCore will be attending the conference and are available for meetings and press interviews.

Silver
Silver is currently trading at $16.50/oz, €11.18/oz and £10.09/oz, no real change on Friday's trading.

Platinum Group Metals
Platinum is trading at $1,327/oz and rhodium is trading at $1,950/oz. Palladium is currently trading at $324/oz.

Disclosure: No positions

Comments

[SW Richmond:]

It is easy to non-violently restore your liberty. Stop supporting the big-money cartel that owns your government:

1. Go to your big national or multinational bank and withdraw all of your money
2. Deposit that money in a small local bank or credit union
3. Become your own bank: Start a program of dollar cost-averaging a significant portion of that money into physical gold and silver in an easily recognized and easily verifiable form (coins)
4. Bury them in a secure location (Bank of Gaea)
5. Never ever buy or hold U.S. Treasury securities

Nov 03 08:29 AM

[doubleguns:]

"The crucial issue is the need for fiscal stimulus withdrawal..."

That's not going to happen anytime soon. Even China is keeping it up.

Invest accordingly.

Nov 03 08:42 AM

[Timothy Don...:]

China is certainly supporting U.S. currency by stockpiling our currency to preserve the magnitude/profitability of its exports to the U.S.

Nov 03 12:12 PM

[ussmls7:]

The world would be a much better off if the Rothschilds were brought to courts for starting & financing wars, rigging the markets to steal the wealth of all man kind. They train their agents & deploy them to do their dirty work,while remaining out of the lime light. R.D.Bradshaw has some of the best articles how the Rothschild family controls governments & monetary policy world wide, posted at "goldseek.com". Great reading for all that believe in sound money & freedom. On a side note, my friend brought over his metal detector & we found many silver coins & 1 $5 gold coin dated 1862 along with many civil war items. The battle of Jacks Creek happen to cross my rual property. Cant wait to look for more great historic items that are still sound money after being waiting for someone to look for! Looks as I have found my bank.

Nov 03 12:55 PM