Gold and Silver Seasonal Year End Rally Underway

By: GoldCore

Today’s AM fix was USD 1,732.75, EUR 1,362.23, and GBP 1,085.55 per ounce.  Yesterday’s AM fix was USD 1,715.00, EUR 1,347.42, and GBP 1,075.84 per ounce.

Silver is trading at $32.19/oz, €25.42/oz and £20.27/oz. Platinum is trading at $1,560.50/oz, palladium at $613.00/oz and rhodium at $1,100/oz.

Gold rose $14.50 or 0.84% in New York yesterday and closed at $1,732.80. Silver dropped to $31.62 in London, then hit a high of $32.412/oz in New York and finished with a gain of 1.76%.

Global Commodities – Prices and Data (5 Day)

Gold is 3.35% higher and silver 4.53% higher this week in US dollars in the aftermath of Obama's re-election. 

Gold in euros looks set to break out above €1,400/oz and is 4.1% higher and in sterling gold has risen 3.7% so far this week. Silver is 5.25% higher in euros and 4.8% higher in pounds.

Gold and silver are set for higher weekly closes in all fiat currencies which may negate the recent bearish short term technical picture and set the precious metals up for the traditional yearend rally. 

Gold in USD – 4 Weeks (Bloomberg)

The data clearly shows that November is gold's strongest month and one of silver's strongest months. December, January and February are also strong months - prior to a period of weakness is often seen in March.

Gold edged up on Friday heading for its first weekly gain in five weeks as Obama was re-elected with the highest jobless rate since US President FDR in 1936.

The ECB and BOE left interests unchanged as expected.  However, Mario Draghi commented that the euro zone economy shows negligible signs of recovering before the year-end despite easing financial market conditions. 

The Fed’s ‘QE to infinity’ policy remains and it continues its programme from October 24th to purchase $40 billion per month of mortgage debt and is committed to hold interest rates near zero until mid-2015.

Gold in GBP – 4 Weeks (Bloomberg)

Gold in EUR – 4 Weeks (Bloomberg)

The Bank of Japan on October 30th widened its asset-purchase program for the 2nd time in two months, increasing it by 11 trillion yen to $128 billion.

The US fiscal cliff and geopolitical tensions with Iran (Iranian warplanes fired on US drones last week) only heighten the risk and uncertainty in the markets and are driving safe haven money into gold.

China releases various economic data today starting at 0130 GMT with CPI & PPI for October.

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Yours sincerely,
Mark O'Byrne
Exective Director

WINNERS MoneyMate and Investor Magazine Financial Analysts 2006

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