This article originally appeared at Zero Hedge
Today’s AM LBMA Gold Price was USD 1,211.00, EUR 1,083.45 and GBP 772.96 per ounce.
Yesterday’s AM LBMA Gold Price was USD 1,209.60, EUR 1,084.36 and GBP 772.60 per ounce.
Gold fell $3.78 to close at $1,205.82 an ounce on yesterday, and silver remained unchanged at $17.12 an ounce.
Overnight, gold in Singapore inched up 0.2 percent to $1,208.19 an ounce near the end of day trading. Gold is on track to trade down 1.4 percent it largest weekly drop in a month.
Gold prices have rebounded today after ending yesterday down 0.3%, but appear to have run into some resistance at their 200-day moving average (1215). On the week, gold is down 0.7% and silver is marginally lower in dollars for the week but has eked out gains in euro terms. The biggest fall of the week was palladium, down just over 2%.
On a daily basis, palladium’s the only precious metal lower today, down just over half a percent, while platinum’s up 0.3% and silver’s 0.5% higher.
Gold was weak in dollar terms but strong in euro terms this week. The U.S. dollar gained nearly 2 percent this week as the euro weakened again.
‘Grexit’ remains a real risk. German chancellor Angela Merkel, Greek Prime Minister Alexis Tsipras and French president Francois Hollande are negotiating a cash-for reforms deal that would allow Greece to meet its debt repayments next month and join the ECB’s quantitative easing programme.
“We can’t just throw Greece of the euro” – Juncker has threatened ahead of the crunch summit. Greece says a reform deal can come in 10 days, but Merkel is cautious – she warned that there is a ‘whole lot left’ to do on Greece bailout talks.
Jitters remains about the next repayment which is due on June 5th. ‘Extend and pretend’ seems likely again but obviously this can only go on for so long before we get a very serious crisis and potentially contagion.
Thomson Reuters’ Lipper service data showed yesterday that investors in U.S.-based funds removed $597 million out of commodities and precious metals funds in the week ended May 20, the biggest outflow since December 2013, showing negative sentiment towards the sector.
However, the smart money continues to maintain allocations or accumulate positions. U.S. mining financier Oskar Lewnowski is preparing to launch a base and precious metals fund, sources have told Reuters. This is his latest step in recreating Red Kite – the famed trading and investment enterprise he co-founded a decade ago.
Two years after going out on his own and creating a private equity investment firm Orion Resource Partners, the 50 year old New Yorker has already invested almost $1 billion in equity, loans and royalty streams into at least 17 junior mining firms, and hired a physical metals trader to handle supply.
Russian gold reserves increased by another sizeable 300,000 troy ounces in April to bring total, declared Russian gold reserves over the 40 million mark – to 40.1 million troy ounces. There is of course the possibility that Russia is not declaring all of their gold bullion purchases and reserves, in the manner of the People’s Bank of China.
In late morning European trading gold is up 0.56 percent at $1,212.67 an ounce. Silver is up 0.68 percent at $17.28 an ounce and platinum is up 0.27 percent at $1,157.00 an ounce.