Gold Consolidates at $1,100 as U.K. Credit Rating Is Under Review

Gold

Gold is currently trading at $1,102/oz. In EUR and GBP terms gold is trading at €735/oz and £661/oz respectively.

Sterling lost ground against the dollar yesterday on news that Fitch Ratings, a rating agency, reported that the UK would be the most likely country to lose its AAA credit rating. If this were to happen, sterling would lose further ground to the major currencies, prompting prudent investors to buy gold and utilise its currency hedging properties. After 4 strong days for gold, pushing to successive highs, the metal slipped off slightly yesterday, dipping below $1,100/oz. It has regained some ground and is back above that level and looks to hold above the last level of support of $1,070/oz.

Silver

Silver is currently trading at $17.39/oz, €11.58/oz and £10.43/oz.

Platinum Group Metals

Platinum is trading at $1,354/oz and rhodium at $2,045/oz. Palladium is currently trading at $333/oz.

Disclosure: no positions

Comments

[ManAboutDallas:]

Ever since the $ made its top back in early March, the Pound has been on some sort of Mission From God. Just look at the chart. What IS the "MFG"? Darned if I know. But nothing seems able to deter it and the notion that Fitch knows more than The Market about the creditworthiness of a country - any country - is ludicrous and laughable, especially given Fitch's recent track record at spotting credit risks. Har, de har har har.

Something is driving the Pound relentlessly higher, at least against the $. When that reason becomes apparent, then and only then will the Pound-versus-$ rally finally come to an end.

Nov 10 09:30 AM

[DiggerUK:]

The $US is weakening against all the world's currencies, we don't have to wait for the "reason to become apparent"
The race to debase is like watching re-runs of Wacky Races, the winner to be the one that crashes last, or least.

Even the $Zim is back in the race.
www.oanda.com/convert/...
www.oanda.com/convert/...

Nov 10 12:33 PM