Today’s AM fix was U.S.D 1,308.50, EUR 939.61
and GBP 772.20 per ounce.
Yesterday London was closed for a Bank Holiday.
Friday’s AM fix was U.S.D 1,285.00, EUR 927.26 and GBP 761.03 per ounce.
Yesterday London was closed for a Bank Holiday.
Friday’s AM fix was U.S.D 1,285.00, EUR 927.26 and GBP 761.03 per ounce.
Gold rose $12.20 or 0.82% yesterday to
$1,310.50/oz. Silver climbed $0.16 or 0.94% to $19.61/oz.
The release of April U.S. non-farm payrolls
data last Friday caused confusion across financial markets as traders
and investors tried to look beyond the headline figure. The headline
data showed a higher than expected number of new jobs added and a
lower unemployment rate. But once the details were digested it became
apparent that the unemployment rate had fallen because the labour
participation rate had dropped due to more and more people dropping
out of the U.S. labour force.
This
reading caused stock markets to fall on Friday afternoon and
investors flocked to safe havens such as bonds and
precious metals. Therefore gold and silver rallied into the close of the week, with gold rising above $1,300/oz.
precious metals. Therefore gold and silver rallied into the close of the week, with gold rising above $1,300/oz.
Trading was thin in the gold markets yesterday
due to the holiday in London but the escalating tension in Ukraine
continued to support the gold price, allowing it to rise as high as
$1,315/oz. Resistance is seen around $1,320/oz, and gold is currently
trading near $1,310/oz.
Gold
in Weeks, 9 Year Chart – (Reuters)
Plaintiffs
Consolidate Gold Fixing Lawsuits in New York
It appears that critical mass is finally being reached amongst the lawsuits that are being taken against the Gold Fixing bullion banks.
It appears that critical mass is finally being reached amongst the lawsuits that are being taken against the Gold Fixing bullion banks.
Yesterday, in Federal District Court in New
York, more than 20 plaintiffs met up to coordinate their lawsuits
against the five investment bank members of the Gold Fixing.
The various lawsuits, which are being pursued
by public investors, hedge funds and private investors, stipulate
that the five investment banks (Barclays, SocGen, ScotiaBank,
Deutsche Bank and HSBC) have the ability to manipulate the gold price
because the Fixing is unregulated and the fact that the banks can and
do trade gold and gold derivatives during the twice daily Fixing
calls.
The first lawsuit was filed in March by Kevin
Maher, a former New York gold trader. However, over subsequent weeks,
multiple lawsuits were filed, leading to a decision to try to
consolidate the suits and appoint a lead lawyer.
According to The New York Times, the courtroom
in Manhattan was so full of lawyers yesterday that it took nearly 15
minutes for the army of lawyers to introduce themselves. The
presiding judge, Valerie Caproni, attempted to bring some discipline
to the situation and said “I want to do this in an organized way to
figure out who’s who,”, however, the sheer number of lawyers
appeared too much for the judge as she added, “Not, that I’ll
remember.”
It will therefore be interesting to see how
these lawsuits progress now that the lawyers appear to have joined
forces.
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