Gold should remain robust

Gold remain range-bound ahead of the US non-farm payroll numbers. Apart from US payroll figures this afternoon, our focus is now shifting towards inflation and inflation expectations following the weak economic data the past few days.

Any slowdown in employment and growth, in conjunction lower inflation, could trigger broader concerns over stagflation. This may well favour demand for US treasuries. Greater demand for US treasuries and the ongoing Euro-zone debt problems may favor the dollar (consistent with our FX strategists view on the euro/dollar exchange rate). We also keep a close eye on Euro-zone CPI next week and the ECB meeting which could signal another rate hike soon. No rate hike from the ECB in coming months could see the euro give up some ground against the dollar.

However, while developments in coming days may favor the dollar, we believe demand for gold should remain robust.
Gold support is at $1,520 and $1,508. Resistance is at $1,545 and $1,557.

Peter Morici on the Gold Standard and the Dollar

Peter Morici : " I did not say we should return to the Gold Standard
" "The Chinese are as much a captive of their currency system as say the Germans and German banks are right now of the euro," says economist Peter Morici, a business professor at the University of Maryland. "They've created a wonderful export contraption of which we are both hostage."

Related ETFs : Ishares Silver ETF (SLV), SPDR GOld ETF (GLD) SPDR GOld ETF (GLD), Powershares DB SPDR Gold ETF (GLD), Newmont Mining (NEM), Barrick Gold (ABX), GoldCorp (GG)

10 Interesting Facts about Gold

10 interesting facts about gold and gold bullion : Gold has a density of 19.282 it is one of the densest elements it is nearly twice as dense as lead but slightly lighter , it is denser than copper . The USA has the largest gold bullion reserves in the world ( at least as announced by the governments ) . the purity of gold is measured in carats a 24 carats equals 99.99% purity , 2k is 91.67% pure , 18k is 75% pure , 14k is 58.3% 12k is 50% , 10k is 41.67% pure , 9k is 37.5% pure . The South African Kruggerand was the first gold bullion coin to be mined (in 1967) and is today one of the most popular gold coin bullion along with the Canadian maple leaf and the American eagle . Modern gold medals must be 92.5% silver (not gold LOL ) and covered with 6gms of gold . The largest gold nugget ever found is called Welcome Stranger found in Australia in 1859 it weighted over 78kg and produced 71 kg of gold . The largest gold coin ever minted was created by the Royal Canadian Mint in 2007 it weights 100 kg and has 50cm in diameter . Gold is highly malleable , a single ounce can be turned into a 50 mile long thread of pure gold cable . As of 2009 all the gold mined in the world totaled 165.000 tons . This would fit into three Olympic sized swimming pools ( 20.4 meter cubed )




Related ETFs : Ishares Silver ETF (SLV), SPDR GOld ETF (GLD) SPDR GOld ETF (GLD), Powershares DB SPDR Gold ETF (GLD), Newmont Mining (NEM), Barrick Gold (ABX), GoldCorp (GG)

As far as gold is concerned, QE3 would be bullish

Following the poor economic data in the US, break even inflation (as derived from the bond market) is falling. Two-year break even inflation is down from 2.5% a month ago, to 1.8% yesterday. Ten-year UST yields are at their lowest level this year. Yesterday’s weak employment numbers and falling inflation expectations have intensified talks of possible QE3 by the Fed.

As far as gold is concerned, QE3 would be bullish. Our analysis suggests that for every $500bn by which the Fed expands its balance sheet, gold would make a step-change of $80-$100. Even at $1,540, gold would provide value. However, our base case is that the Fed won’t implement further QE. Our fundamental view on gold is bullish regardless of QE3. Our analysis suggests that gold’s causal driver is global liquidity, of which only one-third is the Fed’s balance sheet. The other two-thirds of liquidity are driven by global government borrowing. We do not believe that government borrowing in nominal terms is about to decline.

Gold support is at $1,530 and $1,525. Resistance is at $1,542 and $1,560.

Gold Massive Selloff today 02 Jun 11

Gold slumps today but still sigh of a 4 week highs .A trader with Arbitrage LLC, discusses gold breaking below a key technical level, with CNBC's Sharon Epperson & Melissa Francis



Related ETFs : Ishares Silver ETF (SLV), SPDR GOld ETF (GLD) SPDR GOld ETF (GLD), Powershares DB SPDR Gold ETF (GLD), Newmont Mining (NEM), Barrick Gold (ABX), GoldCorp (GG)

QE3 Speculation Will Drives Gold Price Higher

After dropping as low as $1,529 per ounce early yesterday morning, the gold price rallied above $1,550 per ounce as speculation of “QE3” made the rounds across trading desks. With the weak ADP employment data, expectations are that Friday’s jobs report from the Labor Department will miss estimates. QE3 speculation will drives Gold price higher.

With QE2 ending on June 30, speculation is rising that Chairman Bernanke will engage in a new round of asset purchases – or money printing – if the economic data continues to deteriorate.

What Gold and Silver prices can expect from a typically slow summer buying period

Gold and silver prices can expect from a typically slow summer buying period . but we might still have the summer of surprises and and perhaps enough excitement to compared with last summer as well. Because obviously recent European peripherals are still very much on the radar acutely to of course -- extremely. Visible here with the ending again. Or five weeks from now. And of course what the Fed might -- might have to post the cessation of QE 2 those factors will definitely keep markets on the boil.Will Rhind, head of U.S. Operations at ETF Securities, argues that a good jobs number will boost gold and silver prices.

Related ETFs : Ishares Silver ETF (SLV), SPDR GOld ETF (GLD) SPDR GOld ETF (GLD), Powershares DB SPDR Gold ETF (GLD), Newmont Mining (NEM), Barrick Gold (ABX), GoldCorp (GG)