Gold Today –Gold closed in New York at $1,336.40 on Friday after Thursday’s close at $1,358.10. London opened at $1,330.
- The $: € was up at $1.1096 from $1.1135.
- The dollar index rose to 96.30 from 95.67 Thursday.
- The Yen was weaker at 102.41 from Thursday’s 101.48 against the dollar.
- The Yuan was weaker at 6.6616 from 6.6409 Thursday.
- The Pound Sterling was weaker at $1.3042 down from Thursday’s $1.3297.
Yuan Gold Fix
|Trade Date||Contract||Benchmark Price AM||Benchmark Price PM|
|2016 08 8
2016 08 4
|Dollar equivalent @ $1: 6.6616
The Yuan lurched lower as the dollar strengthened after the excellent Jobs report on Friday. While the PB of C is cautious on moving the Yuan higher, they are finding the dollar strength should not become the Yuan’s strength.
LBMA price setting: $1,330.00 after Thursday 4th August’s $1,351.15.
The gold price in the euro was set at €1,200.04 down €13.71 from Thursday’s €1,213.75.
Ahead of the opening in New York the gold price stood at $1,333.35 and in the euro at €1,202.84.
Silver Today –The silver price closed in New York at $19.70 on Friday down from $20.41 on Thursday. Ahead of New York’s opening the price was trading at $19.72.
The excellent Jobs report on Friday of a 255,000 increase, well above estimates, has put a rate hike back on the table, some say for September with others saying not until December. We agree with experts like Bill Gross who states that Janet Yellen is very aware of the global picture. After all the U.S. economy is doing well, but is integrated into the global economy to the extent that the global economy can drag the U.S. economy down. The U.S. is the main global economy but is not nearly so strong as to drag the rest of the world up with it. But markets are reading it as having to power to do just that.
Consequently, gold and silver were pulled back to support on Friday. Bearing in mind the big tonnage bought into the SPDR gold ETF at the end of last week, the gold price was pulled back too far. With it now resting on support as the formation of a pennant shape is beginning, we expect bargain hunters to see the price as attractive now.
Has the Jobs report change future prospects of the U.S. and global economy? We feel more data is needed before one can come to such a conclusion. Deflation across the world remains a main concern for all nations, including the U.S. This swings the spotlight onto inflation. Inflation levels remain far too low leaving prospects for gold positive.
We are now only three weeks away from the start of the “Gold Season”!
Gold ETFs – In New York on Thursday/Friday there were purchases of 10.688 of a tonne bought into the SPDR gold ETF (GLD) and 0.75 of a tonne into the Gold Trust (IAU). This left their respective holdings at 980.336 tonnes and 220.40 tonnes.
Since January 4th this year, the holdings of these two gold ETFs have risen by 403.121 tonnes.
Silver –Silver prices have absorbed the Jobs report like gold and should recover today.
Julian D.W. Phillips