Today’s AM fix was USD 1,265.25, EUR 928.83 and GBP 754.52 per ounce.
Yesterday’s AM fix was USD 1,283.00, EUR 940.48 and GBP 762.87 per ounce.
Gold fell 2% yesterday to $1,264.76/oz. Silver fell 1.8% to $19.06/oz.
Gold in U.S. Dollars, Daily, 1 Year - (Thomson Reuters)
Gold broke below support at $1,284/oz yesterday and quickly fell to nearly $1,265/oz. Overnight, gold in Singapore [6] fell to nearly $1,260/oz prior to a slight bounce back to $1,266/oz.
Better than expected U.S. economic data and slightly lower official Chinese demand were cited as reasons for the move lower but it appeared more computer and technical driven as the price falls came before the U.S. economic data and Chinese demand figures were released.
Technically, gold is vulnerable to a further fall to the double bottom between $1,180/oz and $1,200/oz.
The 14-day relative-strength index fell to 32.9 yesterday, the lowest since December, and near the level of 30 that suggests a potential rebound to technical analysts. Gold has rebounded 5.2% this year even after yesterday’s 2% price fall and remains one of the best performing assets so far in 2014.
Gold premiums in China remain under pressure overnight at just $2 over London spot. The lacklustre trade and slowing demand in recent weeks has led to falling premiums on popular bullion coins and bars globally. We and many bullion dealers internationally have responded by reducing gold bullion premiums [6] on a number of the most popular coins and bars. One kilo bars have been reduced to a 1.6% premium from a 3.5% premium.
The price weakness came despite continuing bullish developments for the gold market. Yesterday came news of China launching a new physical Global Gold Exchange and President Putin of Russia again affirmed how Russia values its gold reserves.
Chinese President Jinping Raises Toast (In Vodka?) With Russian President Putin
Russia and China need to ensure their gold and currency reserves are secure, Russia's President Vladimir Putin told journalists at the St Petersburg International Economic Forum according to Reuters [7].
"For us (Russia and China) it is important to deposit those (gold and currency reserves) in a rational and secure way," Putin said. "And we together need to think of how to do that keeping in mind the uneasy situation in the global economy."
Putin also said China and Russia will consider further steps in order to use national currencies in bilateral transactions.
For more information about falling premiums and current premiums on bullion coins and bars, please click here [6]