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Austrian Parliament Hears 80% of Austrian Gold Bullion Reserves In London
Today’s AM fix was USD 1,729.75, EUR 1,344.23, and GBP 1,084.35 per ounce.
Yesterday’s AM fix was USD 1,726.75, EUR 1,350.71, and GBP 1,085.05 per ounce.
Silver is trading at $33.38/oz, €26.00/oz and £21.00/oz. Platinum is trading at $1,588.25/oz, palladium at $650.60/oz and rhodium at $1,060/oz.
Gold inched up $1.50 or 0.09% in New York yesterday and closed at $1,729.20. Silver surged to a high of $33.378 and finished with a gain of 0.51%. Gold is now some 1% higher for the week and silver nearly 3% higher for the week and higher weekly closes will be bullish from a technical perspective.
Cross Currency Table – (Bloomberg)
Gold priced in Japanese yen rose to a nine-month high this morning at 143,262 yen/oz and is on track for its biggest weekly rise since February, up 2.8% according to Reuters.
The yen came under heavy pressure from growing speculation that the Bank of Japan would aggressively ease monetary policy in the coming months.
Gold trading is quiet with the US markets closed for the Thanksgiving holiday today and the early close tomorrow.
Given the degree of uncertainty in the world – from the Middle East to Greece and the Eurozone debt crisis to the US fiscal cliff – most traders will be reluctant to take sizeable positions long or short and lacklustre, directionless trading may continue.
However, any of these risks could lead to a sudden spurt of safe haven buying that leads to gold eking out gains this shortened week.
The Austrian central bank keeps most of its 280 metric tons of gold reserves in the United Kingdom, Vice Governor Wolfgang Duchatczek was quoted as saying in the finance committee of the country’s parliament today, according to Bloomberg.
Answering lawmakers’ questions, Duchatczek said 80%, or 224.4 metric tons of the metal was stored in the U.K., 17% or 48.7 metric tons in Austria and 3% in Switzerland, according to a summary of a closed-door committee meeting provided by the parliament.
The reserve has been unchanged since 2007, Duchatczek was quoted as saying. The central bank has earned 300 million euros ($385 million) over the last ten years by lending the gold, he said.
Goldman Sachs is bullish on silver in 2013 and believe it will rise in price.
Silver is seeing strong investment demand due to high inflationary pressures, monetary easing and low interest rates, Goldman Sachs said in a note on silver stocks.
High silver prices in recent years have led to increased supply from mine production and old silver scrap.
Goldman noted that world silver supply grew by just 2.2% in 2012, driven by a 3% gain in mined production and a 1% increase in scrap supply.
Gold Prices/Fixes/Rates/Vols – (Bloomberg)
Gold is poised to rise above $2,000/oz next year according to Merrill Lynch Wealth Management.
They are wary of industrial metals and say that the lack of clarity on demand outlook and policies in China dim prospects for industrial metals.
