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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