Gold is down slightly in early trading in London this morning. Gold was up $13.80 to $923.10 per ounce in trading in New York Friday and silver was up 38 cents to $18.09 per ounce. The London AM Gold Fix at 1030 GMT this morning was at $921.00, £465.95 €584.65 (from $914.70, £460.27 and €582.17 yesterday.
Gold has fallen in London most probably on profit taking but looks well supported due to dollar weakness, oil back near $110 a barrel and inflationary concerns. This is leading to strong physical demand internationally at these levels (as seen in recent flows particularly into the ETFs - the silver ETF alone has increased by a significant 5 million ounces alone in recent days).
Today’s release of the minutes of the last FOMC meeting may set the tone for the day. There is speculation that FOMC fears regarding significant inflationary pressures could result in interest rates not being cut as aggressively at the end of the month. U.S. pending home sales are again expected to be weak and this should support gold.
