Gold: Gold dipped sharply to $1,094/oz yesterday and recovered to range trade from $1,104/oz to $1,109/oz overnight. Gold is currently trading at $1,101.00/oz and in Euro and GBP terms, gold is trading at €770/oz and £683/oz respectively. Gold has given up its early gains and is trading flat on the day so far. Further dollar strength on speculation that the Federal Reserve may begin increasing interest rates sooner than expected has contributed to further falls in the gold market. The trend remains firmly up for the dollar and down for gold and as ever traders are making the trend their friend.

With the year coming to a close, further book tidying is likely. A decline in liquidity over the holiday period could lead to further volatility in the gold market. Given that gold is up 25% year to date further profit taking may be seen especially as the momentum is firmly down currently. As ever geopolitical risk such as the Iraq-Iran tensions may intervene over the Christmas period and some traders will remain long for this reason. This was graphically illustrated when Benazir Bhutto was tragically assassinated in Pakistan last Christmas and gold surged some $25 on safe haven buying due to fears regarding a nuclear bomb falling into the hands of Islamic militants in Pakistan.

Gold: There were no surprises from FOMC meeting yesterday and gold rose 1% despite dollar strength and US equities remaining flat. One of the FOMC statement notes may prove important for gold’s outlook and this was that the emergency liquidity facilities will be removed on February 1st, 2010. Asian and European equities have fallen today and risk aversion may soon reassert itself due the Greek and other sovereign debt risks. Greece’s debt crisis appears to be escalating and Enron style accounting would appear to have been practiced with parts of the public sector lack double-entry book-keeping.

With systemic risk remaining, counter-party risk remains high and this will continue to lead to safe haven demand for gold bullion as it is the only asset that does not have third party liability. Gold started the night at $1,134/oz and has experienced a pullback to $1,124/oz since. Gold is currently trading at $1,125.00/oz and in euro and GBP terms, gold is trading at €784/oz and £698/oz respectively.

Gold
Gold and silver were largely unchanged yesterday. Gold is currently trading $3 higher at $1,134/oz due to dollar weakness ahead of the FOMC meeting later. In euro and GBP terms gold is trading at €778/oz and £694/oz. Support for gold is currently seen at $1,113/oz and resistance at $1,149/oz.

Traders await the FOMC rate decision and statement this afternoon which will likely be the primary driver of the markets today. It is expected that the FOMC will hold the key short-term federal-funds rate within a record low range of 0% to 0.25%, where it has been since December 2008. Continuing record low interest rates are the primary reason that gold has yet to reach the bubble phase. In the 1970s, interest rates had to be increased to well into the double digits prior to the gold bubble bursting.

Gold: Gold and silver rose yesterday but have experienced a pullback overnight (gold from $1,128.00/oz to $1,117.50/oz). Gold is currently trading at $1,118.00/oz and in euro and GBP terms, gold is trading at €768/oz and £688/oz respectively.

Healthy premiums for gold show that there is robust physical demand in Vietnam and India at these price levels. The Indian central bank bought 200 metric tonnes (purchases occurred over two weeks prior to October 30th) when gold was trading between $1,030/oz and $1,070/oz and this could mean that gold will see sustained ‘dip buying’ above $1,100/oz.

Gold: Gold has been as high as $1,127.50/oz overnight on dollar weakness but has since given up the gains in late morning London trading as the dollar has recovered its earlier losses. Gold is currently trading at $1,116.50/oz and in euro and GBP terms, gold is trading at €763/oz and £688/oz respectively.

Increasing risk appetite on hopes that the Dubai rescue bailout may alleviate the threat from the sovereign default is likely pressuring gold. Technically, gold fell last week and is near its monthly lows and momentum traders will likely further short the market but investor and central banks will likely continue to buy on the dips providing a strong underlying support for gold above the psychological $1,000 per ounce mark.

Gold
Gold has been as high as $1,138.50/oz overnight and has consolidated on yesterday's higher close - the first in four trading sessions. Gold is currently trading at $1,138.50/oz and in euro and GBP terms, gold is trading at €772/oz and £698/oz respectively.

The dollar is slightly weaker this morning and that is supporting gold. As are concerns about the public finances in many countries internationally (Spain, Greece and the UK in particular). The positive economic data out of China shows the resilience of the Chinese economy and bodes well for physical demand for the Chinese New Year. While economic recovery is gathering pace in China, there are real concerns about deepening inflation. Sovereign debt jitters look set to remain prevalent for the foreseeable future and this should contribute to providing a floor to gold above $1,000/oz. A more positive than expected US Retail Sales number today could see gold come under further liquidation pressure.

Gold is trading at $1,127/oz and in euro and GBP terms gold is trading at €766/oz and £692/oz. Support for gold is currently seen at $1,109/oz and resistance at $1,145/oz.

Gold’s sell off continues and momentum remains down with gold having fallen nearly 10% in recent days (from $1225/oz to nearly $1,100/oz). Further falls are possible but strong physical demand will see gold well supported above previous strong resistance at the previous record high of $1,030/oz.

Gold
Gold’s sell off continued yesterday with gold down some 2% but it has stabilised in European trading and is trading at $1,141/oz. Gold has fallen by less in euro and GBP terms and is trading at €772/oz and £700/oz. Support for gold is currently seen at $1,122/oz and resistance at $1,167/oz.

Gold: Gold recovered some of Monday’s pullback and went as high as $1,164 overnight. Gold is currently trading at $1,162/oz and in euro and GBP terms, gold is trading at €783/oz and £710/oz respectively.

The short term trend remains down and this should continue until we get a few higher daily closes or another higher weekly close.

Gold: Gold touched $1,211.72/oz overnight but has since pulled back. Gold is currently trading at $1,203.70/oz. In EUR and GBP terms it is trading at €799.11/oz and £724.34/oz respectively.

Gold has fallen nearly $20 per ounce from its recent record highs (nominal highs at $1,226/oz and has taken a well earned breather. Tentative dollar strength and further oil weakness has seen traders take profits and there is continuing nervousness about the sustainability of the recent sharp rise in prices. Momentum traders will likely continue to make the trend their friend until we get a lower weekly close. This does not look like happening today unless we get a very sharp selloff and fall below last week’s close at $1,176.70/oz. Caution before the US unemployment figures today is seeing weakness in equity markets.

Gold
Gold reached a new nominal high overnight of $1,226/oz. Gold is currently trading at $1,218.40/oz and in euro and sterling terms, gold is trading at €807/oz and £732/oz respectively.

Gold may be overbought in the short term but in bull markets with strong fundamentals, markets can remain overbought for long periods of time as was seen in the 1970s. There are many institutional and central bank buyers on the sidelines at these prices but they will provide strong support with many waiting to buy on the dips. The recent sanguine reaction of markets to the Dubai default and buoyancy in equity markets has led to leveraged players returning to the futures market and this in conjunction with the strong physical demand from more risk averse investors and central banks means that there will likely be more diversification into gold in 2010.

Gold
Gold reached a new nominal high overnight of $1,216.73/oz. Gold is currently trading at $1,214.40/oz and in euro and sterling terms, it is trading at €804/oz and £731/oz respectively.

Gold reached new record nominal highs over $1,215/oz this morning as the dollar continued to weaken and wider fears of competitive currency devaluations and the debasement of currencies leads to long term inflationary fears. Concerns that markets may be underestimating the risk of contagion posed by the Dubai sovereign default are likely supporting gold at these levels and leading to safe haven demand. Gold's 'perfect storm' is also being aided by continuingly elevated oil prices, geopolitical risks and concerns about the vitality of the recent economic recovery.

Gold
Gold traded between $1,177/oz and $1,187 overnight and has continued its move upward this morning and reached $1,199.22/oz a new record nominal high – a fraction away from the psychological $1,200/oz. Gold is currently trading at $1,197/oz and in euro and sterling terms, it is trading at €793/oz and £722/oz respectively, near record nominal highs in both currencies. Gold rose by 14% in sterling terms in November and by 10.6% in euro terms. Gold is also at record highs in Swiss francs showing that it is not solely concerns about the dollar that is leading to higher gold prices. Rather it is concerns about currencies in general and the effect that the crisis will have on the monetary system.

The crisis in Dubai has led to mixed messages from the markets with equity markets remaining buoyant while the dollar has fallen and gold rallied again. Many market participants remain complacent about the serious and possibly systemic nature of the Dubai sovereign default and the risk of other sovereign defaults (including of European monetary union member Greece). These real risks will lead to further safe haven demand for gold - particularly from strong hand long term buyers such as pension funds and creditor nation central banks.

Gold
Gold touched $1,179/oz overnight but has since dropped slightly. Gold is currently trading at $1,171/oz and in euro and sterling terms, gold is trading at €778/oz and £709/oz respectively.

There are concerns that we may be on the verge of the second stage of the global financial crisis. Not to mention concerns that the continuing unprecedented fiscal and monetary policies will lead to inflation and the debasement of currencies. An already creaking financial system, attempting to clear up the toxic balance sheets of banks internationally, is now be faced with the risk posed by the increasingly toxic balance sheets of many sovereign governments.

Gold
Gold reached new record highs at $1,195/oz yesterday but has experienced the much anticipated correction overnight. Gold is currently trading at $1,157/oz, and in Euro and GBP terms is trading at €777/oz and £706/oz, respectively. Gold is down some 3% and the correction is likely due to a combination of factors.

After gold's recent sharp gains, a much needed correction and consolidation was expected and profit taking was due also. The primary factor in gold's sell off is not risk aversion per se. Rather, the speculative leveraged players going to cash in the very short term due to turmoil in equity markets due to the uncertainty created in the light of the Dubai default. Sell offs like this have been common when international equity markets sell off sharply. Gold becomes correlated with equities in the very short term but what has happened so far in this bull market and will likely continue (as long as gold remains in a bull market) is that gold generally falls by less in the sell off and then bounces back quicker in the aftermath of the sell off.

Gold
Gold is currently trading near record nominal highs in dollars, euro and sterling at $1,185/oz, £717/oz and €786/oz respectively. New levels of resistance and support in dollars are $1,197/oz and $1,171/oz. In dollar terms gold reached a new record nominal high at $1,195/oz overnight in Asia.

News that the Sri Lankan central bank had bought a further 10 metric tonnes from the IMF and Russian intimations that they would further diversify into gold are increasing expectations of further central bank purchases. The Russian central bank increased its gold holdings by 2.6% last month. Their gold bullion reserves rose to 19.5 million ounces in October from 19 million ounces the previous month. Russian central bank Chairman Sergei Ignatiev said that they had in the course of several years replenished their supply of gold with the goal of diversifying their gold and foreign-currency reserves and that gold's share in reserves has increased faster in 2009 than in prior years.

Gold
Gold has rallied to new record nominal highs (in dollars, euros and pounds) and is currently trading at $1,176.40/oz, £705/oz and €784/oz respectively. New levels of resistance and support are $1,186/oz and $1,158.43/oz.

Reports from the Financial Chronicle that the Indian central bank may buy the rest of the IMF gold reserves of just over 201.3 tonnes (their recent 200 tonne purchase has resulted in a gain of $800 million dollars so far) has contributed to weakness in the dollar and to new record nominal highs today. With the Chinese, Russian and other central banks (particularly large creditor nations) are looking to also increase their gold reserves (which remain meagre compared to the US and most European gold reserves) there is the possibility of a bidding war for gold which could send the price much higher in 2010.

Gold
Gold has maintained last week’s and yesterday’s gain and is currently trading near record nominal highs at $1,166/oz, £705/oz and €781/oz. New levels of resistance and support are $1,175/oz and $1,152/oz.

While gold is overbought in the short term it is behaving like a stubborn mule that refuses to go down. A variety of concerns continue to support gold and these include worries regarding the sustainability of the economic recovery (both in China, the US and in other leading industrial nations), the weakening dollar and the long term devaluation of currencies and medium and long term risk of inflation. Oil prices near $80 a barrel and Middle East geopolitical concerns are also supportive. Another factor that has not received much attention but that may have added to the impetus of gold’s rise in recent days are fears that the Federal Reserve may lose its independence due to the US House of Representatives’ amendment to audit the Federal Reserve.

Gold
Gold has rallied to new record nominal highs in dollars with geopolitical concerns about Iran escalating and the dollar falling again. Possibly of more importance are increasing concerns about the unprecedented and huge public debt levels in large industrialised nations and the as of yet remote possibility of sovereign default (there are concerns that sovereign default could, like subprime, be the catalyst for the next stage in the global financial crisis).

Gold has risen and is trading at $1,166/oz, £701/oz and €776/oz respectively. Thus gold is rising to near record highs in all major currencies and is at new record highs in sterling and is very close to them in euro terms as well (gold’s record nominal high in euro was €782/oz and in sterling it is £690/oz – London PM Fix on 20/02/09).

Gold
Gold was unchanged yesterday and remained near record nominal highs as equities fell and the dollar staged a moderate rally. Gold appears to be attempting to consolidate at these higher levels and the unchanged close will encourage the bulls and support is now at $1,130/oz. Gold has moved back up to $1,144.70/oz and remains near record nominal highs in euro and sterling - €770/oz and £690/oz.

It is interesting to note that while government mints are working flat out to provide investors with gold and silver bullion coins, the shortages and surging premiums seen in the small coin and bar market of last year are no longer to be seen. Many retail investors are under financial pressure and many have had to sell their liquid precious metal investments (including coins and bars) and some have sold as they are wary that gold is a bubble. What is interesting is that the tightness in the small bar market seen last year appears to be more evident in the large bar market with the futures market close to backwardation (spot price or price of gold and silver for immediate delivery becomes less than price of front futures contracts - for delivery at a later date).