The Daily Nugget – watch gold today

It seems The Real Asset Company has some admirers. UBS and Credit Suisse are to now offer allocated gold accounts, making the bank a custodian, as part of efforts to reduce their balance sheets. Of course, here in our gold investment company, this is something we have always offered and it’s a good thing the dominators of Zurich’s gold market are wising up to the customer benefits of offering such a service.

This morning gold has managed to halt its four-day slide as it awaits the outcome of the FOMC meeting later this afternoon. Despite officials recently expressing concern over the effects, we expect the Committee will agree to continue on with the $85bn bond-buying program given unemployment rates are yet to show any positive changes.

Should this be the case, we do not expect the gold or silver price to leap significantly higher, but it will reaffirm sentiment in their safe-haven status away from central banks’ policy decisions.

Do look out for the final estimate of US GDP in Q4 2012, as well as the FOMC interest decision, as these will affect gold prices. However, buoyant US data and stocks are preventing gold from breaking out of its tight range at present. The S&P 500 remains on track to post its biggest monthly gain since October 2011 and the DJIA is flirting with 14,000 whilst the Case-Shiller index grew 5.5% in the year to November 2012.

Speaking of which, don’t forget to read our latest piece of gold investment research which looks at back over the Fed’s first 100 years and how asset prices have behaved during that time? Is the Fed the one to blame or is it a bigger power?

Platinum appears to be taking the Amplats news from earlier in the week in its stride, and has risen for the second straight session in a row.

Silver was probably the most boring of all the metals yesterday as it remained flat. However, keep an eye out for it as it is expected to see significant demand increase in India this year, according to  India’s Gems and Jewellery Export Promotion Council. This prediction is most likely down to the impact expected on gold demand following on from customs duty being added on.

 
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Please Note: Information published here is provided to aid your thinking and investment decisions, not lead them. You should independently decide the best place for your money, and any investment decision you make is done so at your own risk. Data included here within may already be out of date.

About the Author

Jan SkoylesJan Skoyles is Head of Research at The Real Asset Company, a platform for secure and efficient gold investment. Jan first became interested in precious metals and sound money when she met Ned Naylor-Leyland whilst working alongside him in the summer of 2010. Jan then went on to write her undergraduate dissertation on the use of precious metals in the monetary system. After graduating from Aston University in 2011 Jan joined The Real Asset Co research desk. Her work and views are now featured on a range of media including BBC, Reuters, Wall Street Journal, Mail on Sunday, Forbes and The Telegraph. She has appeared on news channels including Russia Today to discuss the gold price and gold investing. You can keep up with Jan's commentary by subscribing to our RSS feed Gold Investment News.View all posts by Jan Skoyles