Market Week - Bernanke On Gold

Market Week - Bernanke On Gold - Reuters Precious Metals Poll

At a Glance - Market Update Contents

Market Week - Precious metals have been mixed this week with gold marginally higher up 0.65%, silver 2.4% lower and the PGM metals higher with platinum 1% higher and palladium 3.3% higher.

Bernanke on Gold - In testimony before the Senate Banking Committee, Federal Reserve Chairman Bernanke remarked: “People hold gold as disaster insurance.”

Reuters Precious Metals Poll - We expect gold prices to end this year above $1,550/oz, 20% above current levels at just under $1,300/oz.
________________________________________
Today’s AM fix was USD 1,286.00, EUR 981.53 and GBP 843.45 per ounce.
Yesterday’s AM fix was USD 1,279.75, EUR 975.79 and GBP 842.00 per ounce.
Gold rose $8.00 or 0.63% yesterday and closed at $1,283.70/oz. Silver climbed $0.06 or 0.31% and closed at $19.38.

________________________________________
Gold edged up in Asian and European trading and is on track for a marginal gain - its second consecutive weekly gain.

The rally has made some shorts scramble to cover their positions but there remains a very high risk of a significant short squeeze that will propel gold prices higher in the coming weeks. This is due to still robust demand for physical gold in much of the world including India and China.

Detroit's bankruptcy is a harbinger of things to come as large states, such as California and Illinois, are also very vulnerable to bankruptcy.

Many American cities and states have been living well beyond their means for decades and this is finally coming home to roost. This will exacerbate the already very poor fiscal position of the U.S. with its nearly $17 trillion in national debt and over $80 trillion in unfunded liabilities.

Fed Chairman Bernanke clarified his somewhat confusing recent position to the U.S. Senate banking committee by emphasizing that there is no set timeline for winding down its QE program.

Market Performance Table - (GoldCore)
Bernanke’s comments are ironic as his ultra loose monetary policies and that of his predecessor Alan Greenspan which led to the rise in gold prices in recent years.
Reuters Precious Metals Poll - Q3, 2013
1. Where do you expect gold prices to end this year? Please specify a range from the following: > Above $1,650 > $1,550-1,650 > $1,450-1,550 > $1,350-1,450 > $1,250-1,350 > $1,150-1,250 > $1,000-1,150 > Below $1,000.
We expect gold prices to end this year above $1,550/oz, 20% above current levels at just under $1,300/oz. However, in the short term anything is possible and 2013 could be the first year of lower prices since the 6% fall seen in 2000.

We remain very comfortable with our long term price target of $2,400/oz - the real, inflation adjusted high, from 1980 which should be seen before 2015.

2. What will bring gold prices out of the overall downtrend we’ve seen so far this year?
Continuing robust physical demand from central banks and especially from store of wealth buyers in the EU, U.S., the Middle East and Asia - especially China.

________________________________________This Week's Market Updates
'Cash Strapped' Europeans Sell Jewellery Amid Asian ‘Gold Rush’
Monday
Premiums High In China and India - China Gold Deliveries Double
Tuesday
Cyprus Resists International Pressure To Sell Gold Reserves
Wednesday
India Gold Imports To Rise 5% To Over 900 Tonnes In 2013
Thursday

________________________________________News From Around The World

"Rationale For Owning Gold Is Valid" - Paulson’s First TV Interview
CNBC
Potential For 'Epic Short-Covering Surge'

Got Gold Report
Physical Gold Demand Sets Floor – World Gold Council
The Street
ends

© Scoop Media