August 2012: Gold and Platinum Up 2.7% And 6.4% While Silver Surges 9%

By: GoldCore

Today’s AM fix was USD 1,657.75, EUR 1,319.03 and GBP 1,047.68 per ounce.
Yesterday’s AM fix was USD 1,657.00, EUR 1,320.21 and GBP 1,046.48 per ounce.

Silver is trading at $30.61/oz, €24.42/oz and £19.39/oz. Platinum is trading at $1,516.00/oz, palladium at $617.00/oz and rhodium at $1,025/oz.

Gold fell $0.80 or 0.05% in New York yesterday and closed at $1,655.30. Silver hit a high of $30.90 then edged down to $30.215 and surged higher, but finished trading with a loss of 1.04%.

G10 & Precious Metals Currency Ranked Returns 1 Month (31/07/2012-31/08/2012) – Bloomberg

Gold is hovering today near the 4 ½ month high hit during the week as investors await the US Fed Chairman Ben Bernanke’s speech at 1400 GMT from the Jackson Hole Symposium.

Bullion will benefit as an inflation hedge if Bernanke announces more bond buying and additional monetary stimulus measures for the US economy. However, there is the real possibility that Bernanke merely hints at more QE again today prior to launching QE in September.

Bernanke is likely to wait for the August US jobs data due next week and use that as the reason to announce further QE and money printing measures at the Fed’s policy meeting on September 12-13.

Bernanke merely hinting at such measures today could result in a bout of risk off that sends equities lower and the precious metals lower – in the short term.

Gold has been gradually trending higher over the traditionally weak summer months. It is on track for a nearly 3% gain in August (see table above), continuing its 3rd consecutive month of gradual gains. This sets gold up for a strong few months ahead in the traditionally stronger autumn months.

Silver surged 9% in August and is also well positioned for the autumn months when it tends to move higher with gold. The gold silver ratio at 53 remains favourable to silver and we believe it could revert to levels closer to 30 again in the coming weeks and again outperform gold.

Combine an inflation adjusted high gold at $2,400/oz by a gold silver ratio of 30 to 1 and one gets a silver price of $80/oz which remains quite possible in 2013.

The mining tragedy and ongoing serious difficulties in the mining sector in South Africa saw platinum rise 6.4% while palladium was 4.8% higher.

The Norwegian krone was the strongest fiat currency in August while the Aussie and Kiwi dollars and Japanese yen all came under pressure.

G10 & Precious Metals Currency Ranked Returns YTD (30/12/2011-31/08/2012) – Bloomberg

August strong gains for the precious metals mean that gold, silver and platinum are now respectively 6%, 9.7% and 8.5% higher year to date.

Palladium remains the laggard and remains down 4.7% year to date.

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Yours sincerely,
Mark O'Byrne
Exective Director

WINNERS MoneyMate and Investor Magazine Financial Analysts 2006

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