GOLD: Gold finished up on the close of US trading at $1148/oz trading as low as $1139. Concerns around the Greek debt crisis and its impact on the Euro, gold’s safe haven status providing some further support.
Platinum Palladium and Silver all finished strongly – palladium at its highest since 2008 on a stronger Chinese auto market.
Credit Suisse raised its 2nd Qtr forecasts for base and precious metals, with the expected range $1100 - $1200. The main concern is interest rates, with rising interest rates possibly having an effect on investor demand.
NZD: The Kiwi dollar traded within the same range as further Greek concern slowed risk appetite in the currency markets.
The IMF is still pushing for emerging Asian currencies ( including China ) to revalue/appreciate as they remain substantially undervalued ( especially in the case of the Renminbi)
USD$ and CAD$ are again at parity 1:1
Thursday, 22 April 2010
Wednesday, 21 April 2010
Update 21 April
Gold prices recovering following Goldman Sachs and Greece disruptions
Gold prices spent the first half of the week trending down, from USD$1160/oz on Friday, to Monday’s low of USD$1132. The fall was primarily due to a stronger USD in light of Goldman Sachs’ pending court case and continuing issues around the Greek economy causing markets to become more risk adverse.
Tuesday trading (overnight Tuesday NZST) saw a reversal of the trend with the Gold price climbing back up to USD$1140 on Wednesday morning NZST.
In currency, the Kiwi dollar has sat between USD$0.7200 and USD$0.7050. A strengthening USD has been caused by the move away from risk due to Goldman Sachs and Greece.
Locally, the CPI announcement brought the rate back in overnight. However at the close of US trading it was back over the 0.71 mark. The range has been quite firm for the Kiwi recently so it’s not expected to break out in the short term.
Looking forward, Global G7 and G20 meetings this week will put the attention back on the Yuan vs the USD.
Freight and commodity prices may be in for a bumpy ride, due to eruptions from Mt Eyjafjallajokull which have caused widespread disruption to flights in Europe.
Gold prices spent the first half of the week trending down, from USD$1160/oz on Friday, to Monday’s low of USD$1132. The fall was primarily due to a stronger USD in light of Goldman Sachs’ pending court case and continuing issues around the Greek economy causing markets to become more risk adverse.
Tuesday trading (overnight Tuesday NZST) saw a reversal of the trend with the Gold price climbing back up to USD$1140 on Wednesday morning NZST.
In currency, the Kiwi dollar has sat between USD$0.7200 and USD$0.7050. A strengthening USD has been caused by the move away from risk due to Goldman Sachs and Greece.
Locally, the CPI announcement brought the rate back in overnight. However at the close of US trading it was back over the 0.71 mark. The range has been quite firm for the Kiwi recently so it’s not expected to break out in the short term.
Looking forward, Global G7 and G20 meetings this week will put the attention back on the Yuan vs the USD.
Freight and commodity prices may be in for a bumpy ride, due to eruptions from Mt Eyjafjallajokull which have caused widespread disruption to flights in Europe.
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