“From GoldCore
BRICs Bank To Rival World Bank And IMF And Challenge Dollar Dominance
Gold’s London AM fix this morning was USD 1,664.00, EUR 1,246.16, and GBP 1,037.54 per ounce. Friday’s AM fix was USD 1,655.75, EUR 1,245.86 and GBP 1,041.22 per ounce.
Silver is trading at $32.41/oz, €24.29/oz and £20.21/oz. Platinum is trading at $1,634.50/oz, palladium at $651.96/oz and rhodium at $1,350/oz.
Cross Currency Table – (Bloomberg)
Gold rose $8.10 or 0.49% in New York on Friday and closed at $1,668.20/oz. Gold traded volatile in Asia with quick gains seen at the open prior to determined selling which saw a drop to $1,663.77/oz in late Asian trading and European trading saw further weakness.
Gold climbed towards $1,700 last week after the U.S. Federal Reserve Chairman Ben Bernanke alluded to the possibility of more QE.
Gold continues to be guided by the currency markets. The dollar index hit near a 1 month low last Friday and this plus weakness in all major currencies is seeing gold supported close to the 200 day moving averages.
Gold 1 Year – (Bloomberg)
Gold’s short term technicals remain poor after a lower monthly close in March (-6.4%) and the weekly close below the 200 day moving average.
However, the technicals are not uniformly bad as gold had a higher weekly close last week – rising 0.33% for the week.
The higher quarterly close of a 6.7% gain in Q1, 2012 and 11 consecutive years of annual gains mean that the long term technicals remain favourable.
Gold’s still strong long term supply demand fundamentals and the long term trend of rising gold prices remain a gold buyer’s friend.
Jewellers in India, plan to suspend the longest nationwide strike after the government said that it will delay the implementation of an increase in excise duty on non-branded ornaments.
India’s gold imports will drop near 59% to about 125 tonnes in the 3 months through March as the tax increases boost retail prices by more than 6%, Prithviraj Kothari, president of the Bombay Bullion Association, said. That compares with 306 tonnes imported a year earlier, according to data from the World Gold Council.
The lack of Indian demand has almost certainly contributed to recent weakness and the renewal of India demand in the coming days should provide further support to gold.
BRICs Bank To Rival World Bank and IMF and Challenge Dollar Dominance
Outgoing President of the World Bank, Robert Zoellick, after just three days ago dismissing the idea of a BRICs created, new global multi lateral bank, has come around and endorsed a BRICs bank in an interview with the FT.
Zoellick had initially said that a BRICs bank and potential rival to the western and U.S. dominated IMF and World Bank, would be difficult to implement given competing BRIC interests.
He acknowledged that a BRICs bank was being created and said that the World Bank supported such a bank. He said that not having Russia and China as part of “the World Bank system” would be a “mistake of historic proportions”.
Leaders of the BRICS nations meeting in India appear to have made much progress in creating a new global bank as the emerging economies seek to convert their growing economic might into collective diplomatic influence.
The five countries now account for nearly 28% of the global economy, a figure that is expected to continue to grow.
On Thursday morning, President Hu Jintao of China, President Dmitry Medvedev of Russia , President Dilma Rousseff of Brazil, President Jacob Zuma of South Africa and Prime Minister Manmohan Singh of India shook hands at the start of the one day meeting in New Delhi.
BRICS leaders, from left, Brazil’s President Dilma Rousseff, Russian President Dmitry Medvedev, Indian Prime Minister Manmohan Singh, Chinese President Hu Jintao and South African President Jacob Zuma. Photo: AP
Top of the agenda was the creation of the grouping’s first institution, a so-called “BRICS Bank” that would fund development projects and infrastructure in developing nations.
The initiative would allow the countries to pool resources for infrastructure improvements, and could also be used in the longer term as a vehicle for lending during global financial crises such as the one in Europe, officials said….”
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The newly industrialized world has to begin trading without the US dollar now that the SWIFT system is being used as a weapon of war.
long term this is bad news for us and the greenback
If they want the ability to throw away money like the IMF does…they can go right ahead.
actually, that picture of them waving,is like them waving,”HEY,FLUCK U MERCA, WE GON TU DUST YOU,HA HA. thats what thats all about. does anyone else see the same,because the idjits that run this country dont.
Terrorists, fire up the jets and get the boys ready for another invasion!