Today’s AM LBMA Gold Price was USD 1,143.00, EUR 1,049.25 and GBP 730.68 per ounce.
Yesterday’s AM LBMA Gold [8] Price was USD 1,145.10, EUR 1,050.12 and GBP 732.79 per ounce.
For the week, gold is marginally lower in dollars and pounds but has eked out gains in euros to above €1,050 an ounce.
Yesterday, gold fell $4.20 to $1,144.10 an ounce and silver slipped $0.10 to $15.01 an ounce. Gold in Singapore for immediate delivery was flat and gold bullion in Switzerland [9] was marginally lower.
Gold looks set for a fourth weekly loss, the longest retreat since February despite strong coin and bar demand - particularly in Germany and wider Europe and indeed in the U.S.
U.S. Mint gold bullion coin sales surpassed the January 2015 level yesterday and are currently at the highest level since January 2014.
Gold in EUR - 1 Week
China has announced a smaller than expected increase in its gold reserves. China's gold reserves stood at 53.31 million fine troy ounces or 1,658 metric tonnes by the end of June, the People’s Bank of China announced today.
It was the first public adjustment to its reserve figures in more than six years. It last announced its reserve figure in April 2009, when the level was increased to 33.89 million troy ounces from 19.29 million troy ounces.
Chinese gold reserves increased by 57 percent and China’s holdings have now surpassed those of Russia to become the fifth-largest. The U.S. is believed to have the biggest reserves at 8,133.5 tons.
Gold is no longer used to back the trillions and trillions of paper and digital money of today, however it clearly remains money contrary to assertions to the contrary. Gold bullion remains a substantial part of central bank reserves in the U.S. and Europe. China became the world’s second-largest economy in 2010 and has stepped up efforts to internationalize its currency - the yuan.
This is the continuation of the trend of China positioning the yuan as global reserve currency and we would not be surprised if China begins to accumulate a minimum of 100 metric tonnes a month going forward. The Chinese are pushing for full convertibility of the RMB and increasing their gold holdings will create confidence in the fledgling reserve currency and aid them in this regard.
Gold in GBP - 1 Week
The short term trend remains lower. Gold may be in the process of having one last sell off and capitulation. The move lower this week may signal the start of that phase.
Good physical supply demand fundamentals and a very supportive macroeconomic backdrop are being ignored and the momentum driven and increasingly computer driven futures market is dominating and pushing prices lower again.
Concerns about a Fed interest rate increase are also weighing on the market. Although to an extent we would be surprised if that was not already priced into the gold market - as it has been very well flagged at this stage.
Silver for immediate delivery was flat at $15.04 an ounce, marginally lower for a fifth day. Spot platinum fell 0.6 percent to $1,008.51 an ounce, while palladium fell 1.1 percent to $625.95 an ounce.
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