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GOLD PRICES recovered a $5 drop in London trade Thursday as the US Dollar eased back from this week’s gains on the currency market following a surprise rise in the number of Americans filing for jobless benefit claims.

The Euro gold price in contrast held firm near the highest since April 2017 at €1155 per ounce as France recalled its ambassador to Rome over what Paris called “outrageous statements” from Italy’s deputy prime-minister Luigi Di Maio, “exploiting relations for electoral purposes.”

Leader of Italy’s self-declared ‘anti-establishment’ M5S party – now in coalition with the right-wing Lega – “The winds of change have crossed the Alps,” tweeted Di Maio after meeting self-appointed leaders of the gilets jaunes protesters, now planning to stand in May’s European elections.

Oggi con @aledibattista abbiamo fatto un salto in Francia e abbiamo incontrato il leader dei gilet gialli Cristophe Chalençon e i candidati alle elezioni europee della lista RIC di Ingrid Levavasseur.
Il vento del cambiamento ha valicato le Alpi. pic.twitter.com/G8E0ypLalX

— Luigi Di Maio (@luigidimaio) February 5, 2019

Having spiked to the highest since September 2017 in late January, new US claims for jobless income support last week came in only 7.5% lower, barely half the drop Wall Street analysts forecast.

Priced in the Dollar, gold prices had briefly dipped below $1303 per ounce for the first time in a week in Asian trade, where financial markets in China – the world’s No.1 gold consumer market – remain shut for the Lunar New Year until Monday.

The UK gold price in Pounds per ounce meantime rose to £1015 – a 16-month high when first reached at the start of January – as the Bank of England cut its UK GDP forecast to the slowest growth since the global economic slump of 2009.

As the Dollar weakened in 2016 and again in 2017, gold prices traded higher for US investors than for non-US investors, but the metal has been stronger against non-Dollar currencies since the start of 2018.

“Global slowdown concerns saw the Dollar gaining and gold moving down,” Reuters quotes one spread-betting analyst.

But while gold prices are “pressured by a stronger Dollar,” says the Wall Street Journal, they “remain near their highest levels since June” in USD terms.

The Reserve Bank of Australia yesterday held its key interest rate at a record low of 1.5% and warned that GDP growth looks “weaker than expected…due to slow growth in household consumption and income.”

Keeping UK interest rates near all-time lows and maintaining £435bn of QE bond purchases, the Bank of England today cut its 2019 UK GDP forecast from 1.7% to 1.2%, pointing to a drop in business investment, in new home-building, and in export growth.

UK Prime Minister Theresa May meantime had “robust but constructive” talks on Brexit – set to take effect on 29 March – with European Commission President Jean-Claude Juncker in Brussels today.

Further talks are now due for end-February, while UK and European Union negotiators seek “a way through” on the Irish backstop.

Disclaimer

This publication is for education purposes only and should not be considered either general of personal advice. It does not consider any particular person’s investment objectives, financial situation or needs. Accordingly, no recommendation (expressed or implied) or other information contained in this report should be acted upon without the appropriateness of that information having regard to those factors. You should assess whether or not the information contained herein is appropriate to your individual financial circumstances and goals before making an investment decision, or seek the help the of a licensed financial adviser. Performance is historical, performance may vary, past performance is not necessarily indicative of future performance. This report was produced in conjunction with ABC Bullion NSW.

GOLD PRICES held flat in US Dollar terms in London on Wednesday, keeping a $5 drop for the week so far but rising towards new all-time highs for households in world No.2 consumer market India.

Euro gold and the UK gold price in Pounds per ounce both rose, hitting 22-month highs above €1155 and 3-week highs at £1017 respectively as politicians from the European Union and the UK got no nearer to resolving the ‘Irish backstop’ part of their Brexit deal rejected by lawmakers in London last week.

I’ve been wondering what that special place in hell looks like, for those who promoted #Brexit, without even a sketch of a plan how to carry it out safely.

— Donald Tusk (@eucopresident) February 6, 2019

Gold priced in Dollars meantime held around $1313 as world stock markets slipped after US President Trump’s annual State of the Union address called for an end to what he called “the politics of revenge” but failed to highlight any progress in the key US-China trade talks.

“Relatively muted price action again for bullion during Asian trade today,” says one trading desk, noting the absence of No.1 consumer market China thanks to this week’s Lunar New Year holidays.

Over in India however – the metal’s second largest consumer market – retail gold prices today reached above 33,000 Rupees per 10 grams in Mumbai and over Rs 34,000 in Ahmedabad, nearing new all-time record highs.

Coming after wholesale gold prices in India last week rose to a slight premium to global quotes, these levels match the record-high Rupee cost for consumers of August 2013, when India’s then-Congress Party government rushed out a series of severe anti-gold import rules to try and stem the country’s huge balance of payments deficit, worsened by record-high gold demand amid the metal’s steepest Dollar-price drop in three decades.

India today continues to charge 10% import duty on gold bullion, plus extra VAT sales tax on jewelry since 2017.

Wholesale prices in the sub-continent have now traded at a discount to London on 75% of all business days over the last 3 years according to data compiled by the mining-industry backed World Gold Council, suggesting weak domestic demand against plentiful supply.

“Despite high prices, demand for gold jewelry has been good, mainly due to the ongoing wedding season,” the Times of India quotes one retailer.

“We expect purchase to remain good for another month, before the Holashtak or inauspicious period sets in.”

Late-2018’s rising gold price for India consumers “saw a rise in the number preferring to exchange existing gold for new pieces” said the WGC of India’s jewelry business in its global demand update last week.

“This was particularly prevalent in the south and west regions, where some retailers reported an increase of up to 45% in [this type of] exchange activity.”

India’s police and Customs officials meantime report “an extra push from smugglers to bring in more quantity of gold,” reports the New Indian Express, with gangs looking to exploit today’s near-record high retail prices for legally-imported and retailed products.

“When smugglers used to bring less than a kilo of gold before,” says Customs Commissioner Sumit Kumar, “they now take additional risk and smuggle in more quantities.”

Following last week’s pre-election giveaways in India’s national 2019 budget – widely expected to boost gold demand in the key rural states – the finance minister of Assam today promised a raft of subsidies and gifts for the northeastern state’s citizens, including free electric bicycles for each student passing this year’s senior school exams, rice priced at just 1 Rupee per kilo for 5.3 million families, and 1 tola of gold (currently worth around $500) for brides whose families earn less than $7,000 per year.

Formerly a politician for the Congress Party – dominant in Indian politics until Narendra Modi’s victory in 2015 – Himanta Biswa Sarma quit to run on the ticket of today’s ruling BJP in May 2016.

Disclaimer

This publication is for education purposes only and should not be considered either general of personal advice. It does not consider any particular person’s investment objectives, financial situation or needs. Accordingly, no recommendation (expressed or implied) or other information contained in this report should be acted upon without the appropriateness of that information having regard to those factors. You should assess whether or not the information contained herein is appropriate to your individual financial circumstances and goals before making an investment decision, or seek the help the of a licensed financial adviser. Performance is historical, performance may vary, past performance is not necessarily indicative of future performance. This report was produced in conjunction with ABC Bullion NSW.

GOLD PRICES slid Monday in London, losing more than $15 per ounce from Friday’s new 8-month high for US Dollar investors as No. 1 consumer nation China shut for the Lunar New Year holidays.

World stock markets meantime ticked lower and oil prices hit 2-month highs amid the worsening crisis in the energy resource’s No.1 reserves holder Venezuela, plus growing US-Russia tensions.

Gold bullion prices fell to $1310 per ounce as the US Dollar bounced on the currency market following 2 consecutive weeks of declines.

“[Friday’s] upbeat non-farm payroll suggests the US economy is riding a strong momentum, dampening demand for safe-haven assets like gold,” Reuters quotes one spread-betting brokerage.

Ending last week with the Federal Reserve holding its key interest rate unchanged, January however saw gold-backed ETFs increase their holding “by over 70 tonnes,” notes German bank Commerzbank.

“That is almost equivalent to the total inflows of last year.”

Due to the New Year’s partial US government shutdown, US regulator the CFTC remains behind with updates to positioning data in precious metals futures and options contracts.

But new figures released Friday confirmed that hedge funds and other speculators in the Managed Money category grew their bullish betting on gold prices as 2018 ended, capping their longest run on record of bearish bets.

US benchmark WTI-grade oil contracts meantime rose above $64 a barrel on Monday as supply cuts from the Opec cartel of nations, plus new US sanctions against Venezuela’s petroleum industry, spurred talk of a supply crunch.

The US State Department’s move to block the sale of Venezuelan crude aims to force President Nicolas Maduro to hand power to rival Juan Guaidó – now recognized as interim leader of the Latin American nation by Washington plus Australia, the UK, Spain, France and Germany.

Following mass protests against Maduro at the weekend, US President Donald Trump said Sunday that US military action is “an option”.

Venezuela’s ally Russia warned the US against “destructive meddling”.

With the Bank of England refusing to ship Venezuela’s gold bullion holdings in London back to Caracas since November, Abu Dhabi investment firm Noor Capital on Friday confirmed accusations from Florida senator Marco Rubio that it bought 3 tonnes of gold from Venezuela’s central bank on 21 January, adding that it will now hold off buying more amid the US-led sanctions.

The BBC meantime quotes “a senior Western diplomatic source” that Turkey has been “warned” against accepting any more gold from Venezuela – most especially with “growing suspicions” that it is then busting other sanctions to re-export the metal to Iran – after importing nearly $900m-worth last year.

After the United States said on Friday it will withdraw from a 1987 arms controls pact with Russia in 6 months’ time unless Moscow ends what Washington says are violations, President Vladimir Putin suspended the Intermediate-range Nuclear Forces Treaty with immediate effect on Saturday.

Silver prices today fell harder than gold, retreating 3.0% from Friday’s top above $16 before rallying 10 cents to $15.82 per ounce.

Disclaimer

This publication is for education purposes only and should not be considered either general of personal advice. It does not consider any particular person’s investment objectives, financial situation or needs. Accordingly, no recommendation (expressed or implied) or other information contained in this report should be acted upon without the appropriateness of that information having regard to those factors. You should assess whether or not the information contained herein is appropriate to your individual financial circumstances and goals before making an investment decision, or seek the help the of a licensed financial adviser. Performance is historical, performance may vary, past performance is not necessarily indicative of future performance. This report was produced in conjunction with ABC Bullion NSW.

GOLD PRICES rose yet again in all major currencies bar the Japanese Yen on Thursday, extending New Year 2019’s gains to new all-time record highs against the Australian Dollar as Asian trading saw fresh turmoil in currency and equity markets.

The UK gold price in Pounds per ounce touched £1032 when Asian trade began, slipping back £10 in London hours, while gold priced in Euros touched €1033, some 12.0% higher from September’s 32-month low.

Gold priced in US Dollars meantime edged above $1290 for the first time since June as commodity prices hit new 18-month lows on Bloomberg’s index of natural resources.

Major government bond prices also jumped, pushing yields down once more to erase the last of 2018’s rise in longer-term interest rates for US, UK and Eurozone investors.

Termed a dash into “safe havens” by traders and analysts, the overnight turmoil in Asia also saw Yen gold prices spike down to 3-month lows as the Japanese currency leapt despite last month’s news that the world’s third largest economy shrank 2.5% annualized in the July to September period of 2018.

“Liquidity was non-existent on the move,” says a trading note from Swiss refining and finance group MKS Pamp, “with spreads [between buy and sell prices in Australian Dollars and Japanese Yen] blowing out to over a big figure for about 10 minutes.

“Given the rapid fall in the AUD…[gold in Aussie Dollars] opened an astonishing A$35 higher at $1875 and continued to push toward $1880.

“Australian [mining] producers were slow to realise,” MKS goes on, pointing to the world’s second-largest gold miner nation, “but have since been seen consistently on the offer, taking advantage of the very bullish move” to sell metal and lock in these record-high AUD gold prices.

Prices for producers in No.5 gold miner Canada also rose steeply, spiking to the highest since November 2017 at C$1760.

Chinese gold prices meantime hit their highest since April 2017 overnight Thursday, rising 10.0% in Yuan terms from last August’s multi-month lows and fixing in Shanghai at the equivalent of $1300 per ounce at today’s afternoon benchmarking auction.

Coming after new factory data said manufacturing activity in the world’s 2nd largest economy shrank for the first time in 19 months in December on falling export and domestic orders, that put Shanghai gold prices more than $11 per ounce above London quotes.

That extended the last week’s run of seasonally strong incentives for new gold imports to the metal’s No.1 consumer nation ahead of the Chinese New Year, starting the Year of the Pig on 5 February.

“My feeling is that the market is virtually positioned for a mild recession, but I just don’t think that it’s going to happen,” said Wharton professor Jeremy Siegel to MarketWatch of the US equity slump on Wednesday.

“If we avoid a recession, we’re going to have a really good market…I think we swung too positive last summer and now I think we’ve swung too negative.”

Wednesday saw the giant SPDR Gold Trust (NYSEArca: GLD) expand by 1.0% as investor demand outpaced selling of the world’s largest gold-backed ETF trust fund.

Growing to need 795 tonnes of bullion backing, the size of the GLD now shows a 4-week correlation with the Dollar gold price of +0.92, the most positive reading in 5 months.

That figure would read +1.0 if gold and the GLD’s size moved perfectly together.

Since Christmas Day the GLD has now grown by 21.2 tonnes, the heaviest 5-session inflow since September 2017.

Platinum again held little changed Thursday, trading below $800 per ounce, but silver tracked gold prices higher, touching 6-month highs at $15.62 per ounce.

Priced in US Dollars, silver moved in the same direction as gold prices for the 9th time in the last 10 years in 2018.

But while gold slipped 1.1% across last year to finish at $1281 in London’s wholesale bullion market, silver prices fell 8.3% to finish at $15.46 per ounce.

GOLD PRICES dropped $5 per ounce on news of stronger-than-expected US jobs growth on Friday, heading for the first weekly drop in 5 as world stock markets extended their bounce from October’s slump.

Japan’s Topix index closed 3.9% higher from last Friday and Shanghai’s CSI300 added 3.7% after falling Monday back near October’s 28-month low for Chinese equities.

European stock markets then rose for the 5th day running, and Wall Street pointed higher as US non-farm payrolls blew past analyst forecasts, with the Bureau of Labor Statistics estimating jobs growth of 250,000 in October.

Average US earnings growth also rose, accelerating to 3.1% per annum – the fastest pace in 9.5 years.

Major government bond prices fell Friday, edging interest rates higher, and crude oil fell near $63 per barrel of US benchmark grade WTI, back down to April levels.

With gold prices holding above $1231, silver in contrast rose to $14.81 per ounce, topping its trading range since end-August and rising 3.9% from Wednesday’s low.

After new global gold demand data yesterday said the first 9 months of 2018 were the weakest since at least 2009 – totalling below 3,000 tonnes despite a rise in central-bank buying – “The balance of this quarter may prove a healthy turnaround,” reckons Canadian bank RBC’s analyst Christopher Louney, pointing to October’s 20-tonne rise in gold-backed ETF trust fund investment.

“If physical demand strength can persist in any reasonable amount, Q4 could shape up to be a healthy quarter in line with our price forecasts.”

Over in No.2 consumer nation India however, “Diwali is just a week away but there is no improvement in demand,” Reuters today quotes Mumbai wholesaler Ashok Jain at Chenaji Narsinghji.

“Retail buyers are not interested in making purchases at the current price level” – now near 6-year highs in Rupee terms as demand around the Hindu festival calendar peaks.

A steep rise to 3-week highs in the Yuan versus the Dollar this morning saw Shanghai gold prices close the week at a premium to London quotes of $5 per ounce, one third below the typical incentive for new imports into China and suggesting domestic supplies are sufficient to meet domestic demand in gold’s No.1 consumer market.

Major coin and bar fabricator the Perth Mint in Australia says its global sales of retail gold investment coins and bars fell by two-fifths last month, back in line with the last 3 years’ monthly average of 1.1 tonnes after hitting a 20-month high on September’s price drop.

“Although [India’s] largest gold-buying festival has been weaker than normal,” says analyst Suki Cooper of investment bank Standard Chartered, “e xternal factors remain key and gold investors are likely to focus on macro events [including] the FOMC meeting and the US mid-term elections” coming next week.

“If President Trump loses support and the USD weakens, retail investment demand is likely to pick up, providing a more solid floor for prices, and potentially a tailwind.”

The gold price in Euros also struggled Friday to extend its 6-week rally, trading just shy of last week’s finish at €1080 per ounce as officials from the European Commission got set for a showdown Monday with Rome‘s left-right wing coalition over Italy’s planned 2019 budget deficit.

The UK gold price in British Pounds per ounce meantime fell back below £950, down 1.5% from last Friday’s finish – the highest weekly close for UK investors since mid-June – as UK and European Union negotiators were reported to be preparing a compromise over the post-Brexit border between Northern Ireland the southern Republic.

GOLD PRICES held firm Wednesday in London, trading $10 per ounce above last week’s finish even as the Dollar rallied on the currency market.

Crude oil edged back after 3 sessions of gains amid worsening political tensions over the apparent murder of a US-based Saudi journalist in Istanbul.

Asian equities rose for a second day after October’s 7.9% drop so far on the MSCI index, but European stock markets turned lower again.

The Dollar meantime pushed back the Euro and Sterling from new October highs and edged the Chinese Yuan – currency of the No.1 gold-consumer nation, where bank lending rebounded last month on Beijing’s move to ease monetary policy – back towards last week’s 17-month lows.

Thanks to the Rupee hitting new all-time lows, notes LiveMint, gold prices in India – now the No.2 gold-consumer market, where the Hindu wedding season is now underway ahead of Diwali – have risen 10% so far in 2018.

“Overseas gold has dropped 6%.”

Gold prices today hit $1228 in London trade, matching silver’s 0.7% gain for the week at $14.68 and outpacing platinum, now edging back below $838.

“In spite of [Dollar-gold] price gains over the past week,” says specialist analyst Neil Meader at Metals Focus – launching the independent consultancy’s new Precious Metals Investment Focus 2018/2019 – “it remains the case that professional investors have spent much of this year either shunning the precious metals complex altogether or, over the past month or so, moving to the short side.”

Gold ETF trust-fund holdings last month last month to their smallest since August 2017 according to data from the mining-industry’s World Gold Council.

Hedge funds and other money managers then last week held their largest ever net bearish position on Comex gold futures and options according to data running since 2006 from US regulators the CFTC.

“Economic, geopolitical and financial market developments have mostly tended to be bearish for precious metals,” Meader explains. “In particular, the US Dollar received a boost from further US monetary tightening and growing market consensus of a more hawkish Fed…[plus] the windfall of the tax reform.

“Meanwhile, the trade war between the US and China saw a run emerge on emerging markets, which again boosted the US Dollar and US equities.”

“Some of the headwinds that have weighed on gold this year are likely to persist in the coming months,” reckons Meader at Metals Focus, including “a resilient Dollar, elevated bond yields and subdued inflation…[before] conditions slowly turn positive for gold into 2019.”

Looking for a steady rise in gold prices to average $1310 per ounce next year, “The main trigger [will be] a gradual asset rotation from equities back into gold by mainstream investors.”

Meantime however, “Investors may believe that equities are overvalued but, in the absence of an obvious trigger and the fact the probability of each tail risk is seen as low, there is no rush to jump ship.”

Both Poland amd Hungary meantime – the two European Union member states buying gold for their international reserves this summer – were asked by EU ministers on Tuesday to respond over Brussels’ fears that their governments are breaching “EU values and rules”.

Warsaw’s ruling nationalist Law & Justice Party (PiS) wants to force early retirement on 40% of Poland’s judges in what it calls “reforms” but which the European Commission calls a threat to judicial independence from government.

Last month the European Parliament also triggered so-called Article 7 procedures against Budapest, again worrying over judicial independence and the “deterioration” of democratic values.

The gold price in Euros again challenged August’s highs at €1065 per ounce on Wednesday after the Italian parliament approved the right-left coalition government’s 2019 spending plans, breaching the European Commission’s rules on national deficits.

The UK gold price in Pounds per ounce meantime rose within £1.50 of Monday’s 7-week high at £938 as Prime Minister Theresa May followed a heated debate over her Brexit strategy in parliament by heading to meet EU counterparts in Brussels for what is now a summit with “low expectations” for a resolution according to the BBC.

Disclaimer

This publication is for education purposes only and should not be considered either general of personal advice. It does not consider any particular person’s investment objectives, financial situation or needs. Accordingly, no recommendation (expressed or implied) or other information contained in this report should be acted upon without the appropriateness of that information having regard to those factors. You should assess whether or not the information contained herein is appropriate to your individual financial circumstances and goals before making an investment decision, or seek the help the of a licensed financial adviser. Performance is historical, performance may vary, past performance is not necessarily indicative of future performance. This report was produced in conjunction with ABC Bullion NSW.

GOLD PRICES failed to hold a rally above $1190 per ounce for the second day running in London trade Wednesday, dropping back as the US Dollar rose and world stock markets fell again amid fresh worries over Italy’s government deficit and the UK’s impending Brexit from the European Union.

The Chinese Yuan held its lowest value against the Dollar in 17 months despite a senior Beijing official expressing “optimism” about resolving the tit-for-tat trade war tariffs with Washington.

Gold also fell against a weakening Euro, erasing most of last week’s 1.7% gain to trade back down at €1032 per ounce.

Milan’s FTSE MIB stock index meantime fell for the 8th session in two weeks, helping pull the EuroStoxx 600 3.2% below last Wednesday’s close, as Italy’s government paid the highest borrowing cost in half-a-decade to raise a 1-year loan from the bond market.

Investors locked in a yield of 0.94% on €6 billion of new Italian debt.

Greece meantime paid an annualized 0.65% on €625m of 13-week Treasury bills today.

Yields on 1-year bonds from all other Eurozone states – including Spain and Portugal – held well below zero, with investors willing to lose 0.59% of their money to hold Germany’s short-term government debt.

“Should I change my policies – my agreement with Italians – on the basis of what some speculators decide in the morning? No,” said Italy’s deputy prime minister Matteo Salvini of the right-wing Lega Party today, defending his coalition government’s plan for a 2.4% budget deficit in 2019.

Vowing that Italy’s 10-year spread over German Bund yields won’t reach 4 percentage points – a level last seen in the crisis of 2012 – Salvini also said he wants Italian residents to get a tax break on investing in Rome’s debt.

The BTP-Bund yield spread today eased back from Tuesday’s peak, but held near a 5-year record above 3 percentage points.

Italy checking all the boxes in terms of how not to react to a building market crisis; demonise “speculators”; draw tempting lines in the sand; impugn those able to provide a backstop; forlorn pleas for locals to buy debt.

— econhedge (@econhedge) October 10, 2018

The gold price for UK investors meantime fell back to £902 per ounce, just above its lowest level since 2016’s shock Brexit referendum result, as the Pound rallied on the currency market amid rumors that a Brussels-London deal for the UK’s exit from the European Union next March could be announced as soon as Monday.

With the final summit of EU leaders on Brexit due next week, the Pound reached to a 2-week high against the Dollar and a 4-month high versus the Euro.

“Brexit is a serious problem for Scotland,” said Scottish first minister Nicola Sturgeon in a speech to her Scottish National Party (SNP) conference yesterday.

After 62% of Scots voted to remain in the 2016 ballot, “The only solution is to become an independent country,” Sturgeon said.

Brexit could see UK-EU trade fall in half over the long-term, says a new paper from the IW Institute in Cologne, warning Germany’s giant auto-manufacturers in particular.

Leaving the UK is likely to cost London some 5,000 financial jobs said City minister John Glen to a parliamentary committee today, calling the situation “stable” but agreeing with Bank of England estimates.

To prepare for “resilience” in local services around the end-March exit, the UK government is now advertising 3 posts nationwide, calling the work “exciting and challenging” and offering to pay 167% of the current UK national average salary.

UK bookmakers Coral and Ladbrokes both put the odds of a “no deal” Brexit at evens today.

Betting on US interest rates meantime puts a 1-in-4 chance on the Federal Reserve raising the cost of borrowing 4 times of more over the next 12 months, up from below 1-in-10 this time a month ago, according to data from the CME derivatives exchange.

Disclaimer

This publication is for education purposes only and should not be considered either general of personal advice. It does not consider any particular person’s investment objectives, financial situation or needs. Accordingly, no recommendation (expressed or implied) or other information contained in this report should be acted upon without the appropriateness of that information having regard to those factors. You should assess whether or not the information contained herein is appropriate to your individual financial circumstances and goals before making an investment decision, or seek the help the of a licensed financial adviser. Performance is historical, performance may vary, past performance is not necessarily indicative of future performance. This report was produced in conjunction with ABC Bullion NSW.

PLATINUM PRICES outpaced gold and silver again on Friday in London, extending this week’s rally against the falling US Dollar to 5.1% as world stock markets also rose.

China’s stock market jumped over 3%, hitting 4-week highs as analysts said Beijing has built a strong economic “cushion” against its worsening trade war with the United States.

Donald Trump’s ex-strategy advisor Steve Bannon, however, told the South China Morning Post overnight that the White House is aiming to make the trade war “unbearably painful” for China, forcing it to cut tariffs and open its markets to more US goods.

With the Dollar falling to 3-month lows this morning versus the Euro currency Friday morning, gold added $10 for the week to trade at $1205.

Silver doubled that rate of gain to add 1.9% from last Friday’s finish, briefly touching $14.40 per ounce.

Platinum’s gain to $838 meantime cut the metal’s discount to gold prices to a 6-month low on Friday morning at $370 per ounce.

Over the last quarter-century, platinum prices have averaged a premium to gold of $160.

Sister metal palladium also rose Friday but less quickly, hitting 8-month highs in US Dollar terms at $1058.

That trimmed its premium to platinum to $220 per ounce – a gap beaten on only 75 trading days during palladium’s spike above and plunge from $1000 in 2000-2001.

“Palladium continues to be in demand by industrial users and supplies remain very tight,” says a note from Japanese conglomerate Mitsubishi.

“[That’s] reflected by the continuing market backwardation,” with spot prices trading above palladium prices for future delivery.

Looking ahead, analysts at Canadian financial services firm BMO say they “have some worries about palladium being a one-trick pony” – relying for 80% of its demand on gasoline engines, against 40% of platinum’s demand coming for autocatalysts in diesel vehicles – and “as a result, we have palladium back below platinum on a longer-term basis.”

The British Pound meantime hit 9-week highs against the Dollar on Friday, keeping the UK gold price in Sterling terms per ounce unchanged for the week at £913 – some £5 above Thursday’s drop near the lowest price since June 2016’s shock Brexit referendum result.

UK prime minister Theresa May’s so-called “Chequers plan” remains “credible” said a member of her Government today, despite this week’s outright rejection – most notably over the issue of a “hard border” between Northern Ireland and the Republic of Ireland – by both the European Commission and leaders of the other 26 European Union states after meeting in Salzburg.

Disclaimer

This publication is for education purposes only and should not be considered either general of personal advice. It does not consider any particular person’s investment objectives, financial situation or needs. Accordingly, no recommendation (expressed or implied) or other information contained in this report should be acted upon without the appropriateness of that information having regard to those factors. You should assess whether or not the information contained herein is appropriate to your individual financial circumstances and goals before making an investment decision, or seek the help the of a licensed financial adviser. Performance is historical, performance may vary, past performance is not necessarily indicative of future performance. This report was produced in conjunction with ABC Bullion NSW.