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Precious Metals Set For Higher Weekly Close And Seasonal Year End Rally

Tyler Durden's picture





 

From GoldCore Gold Bullion

Precious Metals Set For Higher Weekly Close And Seasonal Year End Rally

Today’s AM fix was USD 1,732.75, EUR 1,362.23, and GBP 1,085.55 per ounce. 
Yesterday’s AM fix was USD 1,715.00, EUR 1,347.42, and GBP 1,075.84 per ounce.

Silver is trading at $32.19/oz, €25.42/oz and £20.27/oz. Platinum is trading at $1,560.50/oz, palladium at $613.00/oz and rhodium at $1,100/oz.

Gold rose $14.50 or 0.84% in New York yesterday and closed at $1,732.80. Silver dropped to $31.62 in London, then hit a high of $32.412/oz in New York and finished with a gain of 1.76%.


Global Commodities – Prices and Data (5 Day)

Gold is 3.35% higher and silver 4.53% higher this week in US dollars in the aftermath of Obama's re-election. 

Gold in euros looks set to break out above €1,400/oz and is 4.1% higher and in sterling gold has risen 3.7% so far this week. Silver is 5.25% higher in euros and 4.8% higher in pounds.

Gold and silver are set for higher weekly closes in all fiat currencies which may negate the recent bearish short term technical picture and set the precious metals up for the traditional yearend rally. 


Gold in USD – 4 Weeks (Bloomberg)

The data clearly shows that November is gold's strongest month and one of silver's strongest months. December, January and February are also strong months - prior to a period of weakness is often seen in March.

Gold edged up on Friday heading for its first weekly gain in five weeks as Obama was re-elected with the highest jobless rate since US President FDR in 1936.

The ECB and BOE left interests unchanged as expected.  However, Mario Draghi commented that the euro zone economy shows negligible signs of recovering before the year-end despite easing financial market conditions. 

The Fed’s ‘QE to infinity’ policy remains and it continues its programme from October 24th to purchase $40 billion per month of mortgage debt and is committed to hold interest rates near zero until mid-2015.


Gold in GBP – 4 Weeks (Bloomberg)


Gold in EUR – 4 Weeks (Bloomberg)

The Bank of Japan on October 30th widened its asset-purchase program for the 2nd time in two months, increasing it by 11 trillion yen to $128 billion.

The US fiscal cliff and geopolitical tensions with Iran (Iranian warplanes fired on US drones last week) only heighten the risk and uncertainty in the markets and are driving safe haven money into gold.

China releases various economic data today starting at 0130 GMT with CPI & PPI for October.

NEWSWIRE
(Bloomberg) -- China Starting Gold ETPs Would Mean Demand Gain, WGC’s Liu Says
ETPs would give domestic institutions, including pension funds, more opportunities to invest in the precious metal, Roger Liu, the director of Far East investments at the World Gold Council, said today at a conference in New York.

China currently has no domestic exchange-traded products backed by gold

(Bloomberg) – Gold Should Be Thought of as Insurance Policy, Wickwire Says
Investors should look at gold as an insurance policy for other financial assets, Joseph Wickwire, who manages $4.5 billion at Fidelity Investments, said today at the Bloomberg Portfolio Manager conference in New York.

Macroeconomic imbalances, reflationary policies and geopolitical tensions will drive prices higher in the long term, Wickwire said. Investors with risk-tolerant portfolios should hold the metal to hedge against volatility in other markets, he said.

“Gold pays off when stocks, bonds and currencies disappoint,” Wickwire said. “A little goes a long way.”

(Bloomberg) -- Pension Funds in Japan Increasing Investment in Gold, WGC Says
Jason Toussaint, managing director at the producer-funded World Gold council, said in an interview in New York.

Seeing increased dialogues among U.S. pension funds to look at commodities, including gold, as an investment, Toussaint said.


Cross Currency Table – (Bloomberg)

NEWS

Gold Traders More Bullish After Obama's Re-Election - Bloomberg

Gold heads for biggest weekly rise since late-Aug - Reuters

Wall Street falls as "fiscal cliff" concern outweighs data - Reuters

Gold jumps over $10 on Iran fears – Fin 24

COMMENTARY

Video: Bouroudjian Says Gold Could Double In 3 to 4 Years - CNBC

Fearful Investors Should Stock Up On Gold – The Financial Times

$100 Silver! Yes, But When? – Silver Seek

For Third Year In A Row, Gold Outperfoming Stocks – Zero Hedge

Video: DOW to Collapse to 6,000 – CNBC

Video: Max Keiser with Ned Naylor-Leyland about Germany’s gold, JP Morgan’s shorts & Chilton’s ‘investigation' – Max Keiser

 


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Fri, 11/09/2012 - 09:05 | Link to Comment GetZeeGold
GetZeeGold's picture

 

 

Love it when a plan comes together.

Fri, 11/09/2012 - 09:05 | Link to Comment flacon
flacon's picture

Well it's about time! 

Fri, 11/09/2012 - 09:08 | Link to Comment GetZeeGold
GetZeeGold's picture

 

 

The boyz at CNBC are going to be super pissed.

 

Sorta like icing on the cake.

Fri, 11/09/2012 - 11:08 | Link to Comment dbTX
dbTX's picture

So is J P M

Fri, 11/09/2012 - 11:41 | Link to Comment Deo vindice
Deo vindice's picture

Shouldn't the title be "U.S. Dollar Set For Lower Weekly Close And Seasonal Year End Fall"?

When will we ever learn that PM's are not to be measured so much in terms of fiat currency, but fiat currency to be measured in terms of PM's.

The shore does not leave the departing ship, it is the ship leaving the shore.

The shift in thinking about the relationship between fiat and gold has still not taken hold even amongst some ZH-ers.

Fri, 11/09/2012 - 09:52 | Link to Comment Chupacabra-322
Chupacabra-322's picture

Gotta go long on toilet paper and soap.

Fri, 11/09/2012 - 09:07 | Link to Comment TeamDepends
TeamDepends's picture

By March you will be able to buy a house for a few old Franklin half-dollars.

Fri, 11/09/2012 - 09:12 | Link to Comment crusty curmudgeon
crusty curmudgeon's picture

You'll be able to wipe your arse with a few old Franklin bills too.

Fri, 11/09/2012 - 09:17 | Link to Comment Clint Liquor
Clint Liquor's picture

You might want to convert some of those FRNs into Yen. As the Yen is much softer and plusher than FRNs.

Fri, 11/09/2012 - 09:30 | Link to Comment francis_sawyer
francis_sawyer's picture

Don't squeeze the CharmYEN...

Fri, 11/09/2012 - 09:54 | Link to Comment Chupacabra-322
Chupacabra-322's picture

Yuan, boring....

Fri, 11/09/2012 - 09:10 | Link to Comment GubbermintWorker
GubbermintWorker's picture

Oh goody! I have a bunch of uncirculated ones! Will they get nicer houses?

Fri, 11/09/2012 - 09:31 | Link to Comment francis_sawyer
francis_sawyer's picture

They'll get you 'uncirculated' houses...

Fri, 11/09/2012 - 09:14 | Link to Comment orangegeek
orangegeek's picture

The US Dollar remains the key.  If the US Dollar continues to rise, that which is priced in US Dollars will likely fall, including gold.

 

http://bullandbearmash.com/chart/dollar-ends-day-euro-currencies-fell/

Fri, 11/09/2012 - 09:15 | Link to Comment GetZeeGold
GetZeeGold's picture

 

 

Rise against what?

Fri, 11/09/2012 - 09:16 | Link to Comment Orly
Orly's picture

DXY

Fri, 11/09/2012 - 14:29 | Link to Comment akak
akak's picture

The DXY is probably the most artificial, meaningless and outright spurious measures of ANYTHING financial or monetary ever invented.  It is less than useless --- it is almost totally nothing but a propaganda tool used by TPTB to fool and hoodwink the sheep.  I piss on the DXY, and on anyone who would dare try to claim that it is a measure of the value of the US dollar.

Fri, 11/09/2012 - 18:35 | Link to Comment Orly
Orly's picture

Except for the fact that the price of oil, gold, copper and other commodities are priced in DXY.

:/

Fri, 11/09/2012 - 19:24 | Link to Comment akak
akak's picture

No, Orly, you are completely wrong --- oil, gold, copper, etc. are priced in US dollars, NOT in the US dollar index.  The two things are most certainly NOT the same!

If they were in fact priced in the DXY, then their prices would be roughly the same as they were 30 or more years ago --- is that what you are trying to claim?

Really, do I actually have to state the obvious here?  The DXY has NO relevance outside of the world of short-term currency trading.  It is less than useless in measuring ANYTHING relating to the US dollar on any longer-term time scale.

Fri, 11/09/2012 - 09:53 | Link to Comment GubbermintWorker
GubbermintWorker's picture

The viagra Benny has been pumping into it.

Fri, 11/09/2012 - 09:24 | Link to Comment fonzannoon
fonzannoon's picture

GOTZ beat me to it. Orly I am not sure but isn't the Euro a major part of the dxy? Like 75%?

(I was going to go back and correct your name to GETZ but at this point I hope you got it)

Fri, 11/09/2012 - 09:28 | Link to Comment Orly
Orly's picture

From Squidoo:

The components of the DXY Index are (by weighting): Euro (57.6%), Japanese Yen (13.6%), Great Britain- Pounds Sterling (11.9%), Canadian Dollar (9.1%), Swedish Krona (4.2%), and Swiss Franc (3.6%). Because the composition of the DXY is so heavily biased towards the Euro and European economies, it is sometimes referred to as the Anti-Euro Index.

Fri, 11/09/2012 - 09:16 | Link to Comment falak pema
falak pema's picture

EurUSD is now below 1.27...

Germany's exports and euro oil imports...

Fri, 11/09/2012 - 09:30 | Link to Comment Orly
Orly's picture

But...

A bullish Gartley formation has arisen on the EURUSD Daily chart with targets to ~1.283 and above, so be very careful here.  The pair is rising off of oversold condtions.

I'm thinking we'll hear some "fiscal cliff" ya-da, ya-da, ya-da out of the Congress and the White House today, which could send equities correcting to the upside, bringing the EURUSD with it.

:D

________

Addo: All the happy talk will lessen TEOTWAWKI talk and will probably send gold lower.

Fri, 11/09/2012 - 09:35 | Link to Comment ebworthen
ebworthen's picture

The fiscal cliff talk is nauseating.

"Rise Above" on CNBC "Time to put away the politics and solve this problem."

You are probably right though, the U.S. version of Draghi press conferences, CONgressional representatives jockeying for position in public, in private colluding to raise taxes and come up with some new ones, restrict freedoms, cut already taxed entitlements, and keep the banks and corporate "individuals" in the green while bleeding the middle class for fiscal plasma.

Hype, hope, and fantasy to keep this bubble inflated until it pops and we can blame the average citizen for not caring or being austere enough and following the debt spending examples of business and government.

Fri, 11/09/2012 - 09:51 | Link to Comment falak pema
falak pema's picture

so you predict euro tits up?

Gartleys, GArtleys, gartleys green sprouts! 

Fri, 11/09/2012 - 09:55 | Link to Comment Orly
Orly's picture

And steamed asparagus spears in a yummy butter garlic sauce.

No, Hollandaise, in honour of our French president.

:)

Fri, 11/09/2012 - 10:15 | Link to Comment falak pema
Fri, 11/09/2012 - 10:18 | Link to Comment Orly
Orly's picture

Mmmmm...

What is the devil's sauce?

Qu'est-ce que c'est la sauce diable?

Fri, 11/09/2012 - 10:25 | Link to Comment falak pema
falak pema's picture

its the result of the aspagarus  Gainsbourg! I guess, it makes you devlish! 

But seriously, avec les cailles encroûtés I see a spicy red sauce, looks like cayenne pepper in balsamic vinegar.

Balsamic vinegar - Wikipedia, the free encyclopedia

Fri, 11/09/2012 - 10:33 | Link to Comment Orly
Orly's picture

So, you're saying it would work with fried chicken?

:0

Fri, 11/09/2012 - 10:52 | Link to Comment falak pema
falak pema's picture

le poulet au citron très bon, mais poulet en croûte aussi, so why not! 

Do you get farm chicken fed on whole grain, not battery and  GM soybeans?

here is a selection of recipes for poulet :

Volaille : 254 Recettes de volailles

Fri, 11/09/2012 - 11:12 | Link to Comment Orly
Orly's picture

Merci bien.  Tonight, I am making lasagna, though.

Yes, the all-natural chicken from Smithfield.  I know I sound crazy but you can really taste the difference between a happy chicken and a miserable one.

:D

Fri, 11/09/2012 - 11:50 | Link to Comment falak pema
falak pema's picture

same is true about desert and after desert. Cakes and late hits. 

Fri, 11/09/2012 - 10:11 | Link to Comment eclectic syncretist
eclectic syncretist's picture

Oblather is going to make a statement outlining his plan to boost the economy while simultaneously cutting the deficit today.  Could be a boost to silver and gold.

http://www.businessweek.com/news/2012-11-08/obama-to-make-statement-on-e...

Taking bets he says we need to spend more now and make "rock solid" plans to start addressing the deficit,...... by sometime after 2016.  And silver and gold jump.

Fri, 11/09/2012 - 09:39 | Link to Comment TWSceptic
TWSceptic's picture

If the US Dollar continues to rise

 

What makes you think that, the fed will make sure that doesn't happen.

Fri, 11/09/2012 - 11:35 | Link to Comment Overfed
Overfed's picture

I just wanna know how the hell it could rise against anything with the chairsatan pumping out another $85 billion of it for nothing every month. Is every other currency in the world tanking that badly?

Fri, 11/09/2012 - 10:33 | Link to Comment Sheeple Shepard
Sheeple Shepard's picture

 "If the US Dollar continues to rise"

 

Why do people still fall into this fucking elephent trap by saying ANY F.I.A.T currency rises?

They all fall! Fall fall fall fall fallllllllllllllllllll. -1 

Fri, 11/09/2012 - 14:31 | Link to Comment akak
akak's picture

Agreed.

No fiat currency has EVER risen in value --- the very suggestion is insulting, and utterly oblivious of monetary history.

Fri, 11/09/2012 - 09:16 | Link to Comment buzzsaw99
buzzsaw99's picture

the central banks are buying gold and bonds so i guess there is no bubble. [/sarc.]

Fri, 11/09/2012 - 09:18 | Link to Comment scatterbrains
scatterbrains's picture

As best I could tell gold always moved concurrent with nyfed market molestations. Now we have gold ramping while the nyfed is letting stocks tank.  What's about to hit the wires ?

Fri, 11/09/2012 - 09:19 | Link to Comment LongSoupLine
LongSoupLine's picture

so, what's the right approach to the masses of doubters we've been preaching to?:

 

 

A) We told you so!

B) Go fuck yourself sheeptard!

Fri, 11/09/2012 - 09:28 | Link to Comment ebworthen
ebworthen's picture

C)  I pity the fool!

Fri, 11/09/2012 - 09:30 | Link to Comment LongSoupLine
LongSoupLine's picture

+1 for 1980's Mr. T'ism.

Fri, 11/09/2012 - 11:37 | Link to Comment Overfed
Overfed's picture

Both. Every mofo I meet that thought I was full of it is gonna get his nose rubbed in this shit with extreme prejudice.

Fri, 11/09/2012 - 09:19 | Link to Comment Its_the_economy...
Its_the_economy_stupid's picture

"There is no spoon."

Fri, 11/09/2012 - 09:32 | Link to Comment sablya
sablya's picture

There is a silver spoon

Fri, 11/09/2012 - 09:24 | Link to Comment fijisailor
fijisailor's picture

Slowly but surely people come around to wealth preservation.  May be an avalanche soon.

Fri, 11/09/2012 - 09:24 | Link to Comment tradewithdave
tradewithdave's picture

Quick question. Is price gouging after a hurricane outlawed in precious metals?  Just asking.

www.tradewithdave.com

Fri, 11/09/2012 - 09:35 | Link to Comment francis_sawyer
francis_sawyer's picture

If anyone in the New York area want's to buy a 5 gallon container of gasoline, I'll sell it to them (for pre 1964 silver coinage)... I will not accept FRN's... That's the way it goes peeps...

Fri, 11/09/2012 - 09:25 | Link to Comment ebworthen
ebworthen's picture

Precious Metals are much more real and tangible than paper and promises.

Bullish for reality, Bearish for reverie.

Fri, 11/09/2012 - 09:29 | Link to Comment Calculated_Risk
Calculated_Risk's picture

What is the reaction of the pm markets when fiscal cliffs or budget impasses hit the .gov? Any one got a chart or some good insight?

Fri, 11/09/2012 - 09:39 | Link to Comment ebworthen
ebworthen's picture

A debt rating downgrade would be bullish for PM's IMHO.

Look for Egan-Jones to be the first to downgrade the broke U.S.S.A. (if the S.E.C. doesn't jail them for telling the truth before then).

Fri, 11/09/2012 - 09:47 | Link to Comment Calculated_Risk
Calculated_Risk's picture

Thx. I did look a while a go, and recall a short spike preceding such events, then a drop when it was "resolved". But I have a feeling this one is going have a much more dramatic ending... So I'm just putting myself in check! :P

Fri, 11/09/2012 - 09:52 | Link to Comment Calculated_Risk
Calculated_Risk's picture

P.s. the msm shills have hinted deflationary event at the end of the year, and that usually takes pm's with it.. I guess we'll have wait and see :/

Fri, 11/09/2012 - 09:57 | Link to Comment Orly
Orly's picture

What event?  Do you have any links?

Thanks.

Fri, 11/09/2012 - 10:21 | Link to Comment Calculated_Risk
Calculated_Risk's picture

My bad, it's the "fiscal cliff", one minute it's fixed, another its not.. I caught this will in and out of decaffinated consiousness..

about 2:50 in

http://video.cnbc.com/gallery/?video=3000128156&play=1

then another guy at work became a trader and was talking about a dive in the market,

and I caught another blurb somewhere else. Plus there's a video on cnbc about dow 6000, but

it's for 2016.. so, I think they're gearing up for a market dump..

Fri, 11/09/2012 - 09:39 | Link to Comment JustObserving
JustObserving's picture

Changes in the world economy will ensure that gold rises.  China and India love gold:

"China will overtake the US in the next four years to become the largest economy in the world, says a leading international thinktank.

The Paris-based Organisation for Economic Co-operation and Development (OECD) said China's economy will be larger than the combined economies of the eurozone countries by the end of this year, and will overtake the US by the end of 2016.

Global GDP will grow by 3% a year over the next 50 years, it says, but there will be large variations between countries and regions. By 2025, it says the combined GDP of China and India will be bigger than that of France, Germany, Italy, Japan, UK, US and Canada put together. Asa Johansson, senior economist at the OECD, said: "It is quite a shift in the balance of economic power we are going to see in the future."

http://www.guardian.co.uk/business/2012/nov/09/china-overtake-us-four-years-oecd

Fri, 11/09/2012 - 09:42 | Link to Comment youngman
youngman's picture

We make the assumption that the USA is the only market for gold........its not....in fact if I was a successful businessman in a little foreign country....I would not hold dollars..or Euros..or Yen...I would hold gold...

Fri, 11/09/2012 - 09:49 | Link to Comment Jungle Jim
Jungle Jim's picture

A picture is worth a thousand words.

Gold, bitchez. And silver, and some other stuff too.

http://www.museumsyndicate.com/item.php?item=34463

Fri, 11/09/2012 - 10:36 | Link to Comment yabyum
yabyum's picture

Metals taking off right now.

Fri, 11/09/2012 - 10:42 | Link to Comment Orly
Orly's picture

It's a trap, hoss.  Look at the chart above as Gold in USD.  Notice that huge, vapourous up tick at the bottom from November third and the sixth? There is nothing there to hold that price.  Next stop is $1680 or below.

I ain't sayin', I'm jus' sayin'.

:D

Fri, 11/09/2012 - 10:58 | Link to Comment jjsilver
jjsilver's picture

+ KGC LEAPS

Fri, 11/09/2012 - 11:20 | Link to Comment Silver Garbage Man
Silver Garbage Man's picture

Diane Sawyer just mumbled something about buying metals. If it's good enough for her it's good enough for me. Oh and she also said to keep lots of toilet paper in the house.

Fri, 11/09/2012 - 12:51 | Link to Comment Bansters-in-my-...
Bansters-in-my- feces's picture

Question to the author of GOLDCORE.

 

Do you believe that gold and silver bullion prices are manipulated .

A simple yes or no will be sufice..

Thanks in advance for your response.

Do NOT follow this link or you will be banned from the site!