As we explained yesterday, Putin’s remarks over Ukraine saw the gold price drop back slightly from its 17-week high, yesterday.
Gold is still holding its ground above $1,335 and will no doubt continue to as speculators watch for further developments and any US economic data.
The market appears to be consolidating ahead of the non-farm payroll data on Friday. Once again we appear to have returned to a position where one figure affects the short-term gold price, especially as there is no longer a possibly war to focus on.
PGMs deserve some attention
Whilst the financial world has been focussing on the outcome of the Ukraine situation, and some have been distracted by London Gold Fix developments, the PGMs have been putting in a stellar performance. Unsurprisingly the recent strikes have been having a considerable effect on supply, prompting speculators to push the price up by another $60 for palladium and $50 for platinum.
London Gold Fix cannot be fixed
It seems stories on the London Gold Fix will just not go away. They say all publicity is good publicity but I’m fairly sure that is not the case here.
In a further development to the gold fixing scandal, five banks including Barclays and Deutsche Bank are named in lawsuit Maher v. Bank of Nova Scotia, 14-cv-01459. They are accused of colluding and manipulating the London Gold Fix.
New York resident Kevin Maher has brought about the case following a Bloomberg report on a recent draft paper that looked at the London Gold Fix and suggested that actions going on were not entirely legitimate and there was serious collusion.
Bloomberg reports, ‘Maher is seeking to represent a class of all investors who, from 2004 to now, held or traded gold and gold derivatives that were priced based on the gold fix or who held or traded COMEX gold futures or options. He’s seeking unspecified damages on behalf of the class. Damages may be tripled under U.S. antitrust law.’