Gold prices bounce again.

Gold prices traded higher in India on Thursday, reflecting positive global trends. On Multi Commodity Exchange, December gold futures were trading at Rs 47,554 per 10 grams, up Rs 55, while December silver futures were trading at Rs 118 or 0, 18% at Rs 65,725 per kg.

Globally, yellow metal prices edged up, extending gains in a third session on a weaker dollar. Spot gold rose 0.2% to $ 1,784.96 an ounce. US gold futures were little changed at $ 1,784.60.
Gold prices rose in trading on Wednesday, with the dollar index tumbling to its two-week low, offsetting the impact of rising US bond yields.

As of 08:46 GMT, the precious metal’s price rose 0.55%, or $ 9.68, to trade at $ 1,778.97 an ounce.

Gold futures prices, for delivery in December, rose 0.42%, or $ 7.4, to $ 1,777.90 an ounce.

Meanwhile, the dollar index rose 0.08% against six other major currencies to 93.8 points, a performance that keeps it close to its lowest level in more than two weeks.

Over the past two sessions, the price of gold has risen amid a weaker dollar and lower yields on US Treasury bonds. The markets are keeping an eye on the inflation and employment figures which will determine whether to maintain or remove monetary stimulus.

During today’s session, bond yields hit their highest level since last May, increasing the cost of holding gold that doesn’t generate a return.

Silver Today – The silver price closed in New York at $20.74 up 37 cents. Ahead of New York’s opening it was trading at $20.63.

Gold (very short-term) We expect gold to consolidate, with a slightly positive bias, in New York today.

Silver (very short-term) We expect silver to consolidate, alongside gold, in New York today.

Price Drivers.

There were no sales or purchases to or from the SPDR gold ETF, but there was a small purchase of 0.6 of a tonne of gold into the Gold Trust on Friday. The holdings of the gold ETFs stand at 801.844 tonnes in the SPDR gold ETF and at 165.66 tonnes in the Gold Trust.

Despite further attempts to crush the gold price by further short sales of gold on COMEX [no physical sales] the gold price jumped back up through the $1,300 level. Technical support held below $1,300 and Asian demand continued to provide physical support to the gold price. But Asian support is very different to developed world support in that it is not influenced by rising prices only falling ones.

The euro continues to decline but is not taking gold with it, further confirmation that the gold price is strong in all currencies and breaking its supposed link to the euro. The euro currently stands at $1.3436 down from last week’s $1.3448. We have to emphasize that the gold price is now a global price against all currencies, not only moving contrary to the dollar.

The week starts with stability across the globe being shaved slightly once again, last week. A glance back in history shows us that major events are the culmination of a slow build-up of forces that explode on us at some point. During the build-up the public face of government is usually one of either silence or denial. Just before World War 11 began the Prime Minister of England shouted, “Peace in our time!” on his return from talking to Hitler. We see such a build-up in the monetary world, well on the way, in our time.

We forecast that 2022 will be the quietest year in terms of peace, stability and certainty for the next ten years. There is so little out there in terms of both efforts and structures that tell us that these factors will get better. Consequently, the gold price will reflect this, medium to longer term.

Silver– The silver price bounced back vigorously reflecting it is moving with gold on the monetary/investment front and remains relatively unaffected by its own fundamentals, particularly industrial use. We see that industrial demand is vigorous, but has not affected the silver price by itself for years now.

Global Gold Price (1 ounce)
Francs suisseSf 1654,84
EU€ 1526,90

By Alexandre Laurent

Alexandre Laurentl is working in the jewelry and investment gold since 2002. Alexandre graduated from The Normandy School of Business and from the University of Perpignan a Bachelor of economics in 1995.

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