Euro, Iran and Asian New Year Buying Fuels Gold

From GoldCore

Euro, Iran and Asian New Year Buying Fuels Gold

Gold is trading at USD 1,612.90, EUR 1,256.10, GBP 1,037.30, CHF 1,530.40, JPY 123,934 and AUD 1,573.0 per ounce.

Gold’s London AM fix this morning was USD 1,614.50, GBP 1,038.33, and EUR 1,256.32 per ounce.

Yesterday's AM fix was USD 1,603.00, GBP 1,024.28, and EUR 1,229.96 per ounce.

Gold's fifth day of price rises is the longest rally we've seen in two months. Concerns about the solvency of European banks and sovereigns is overcoming the 'risk on' appetite of late 2011 and early 2012. The euro has fallen to 1.2840 USD and to €1,256/oz.

Growing tensions with Iran including the European Union's preliminary agreement to ban Iranian oil, will fuel gold's  safe haven status for investors.

Gold is trying to consolidate above psychological levels of $1,600/oz, £1,000 and €1,200/oz. The 200 day moving average is $1,631.60 which remains resistance. The intraday high hit $1,624.66, was gold's highest price since December 21.   

We expect gold demand to pick up ahead of the Chinese Lunar New Year, The Year of the Dragon, which begins on January 23.



(Business Week) -- Gold Gains as Physical Asian Demand Offsets Sales After Rally…

(Reuters) -- PRECIOUS-Gold up on seasonal China buying; Iran eyed…

(Reuters) -- PRECIOUS-Gold jumps after preliminary EU deal on Iran oil ban

(Wall Street Journal) -- PIMCO's Gross: Gold is pricey but has room to rise if Fed stimulates more


(The Washington Post) -- O'Byrne Says $2400 Gold `Quite Likely' in Coming Years‎…

(Wall Street Journal) -- Academics Say Gold Bulls "Driven By Emotions"

(Jim Sinclair’s Mineset) -- Negativity In Gold Reaches Epic Levels…

(The Christian Science Monitor) -- Are gold prices dropping for good?…

(Bloomberg) -- `Currency Wars' Will Be `More Brutal' in 2012


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