Gold Market News

First Japanese gold ETF due to launch Aug. 10

source

As well as Small-Lot Gold Futures Trading on TOCOM(100 grams per lot , margin = 12,000 Yen)

source

Korea : The government plans to establish an exchange for gold as early as next year.

By Lee Hyo-sik
Staff Reporter

"The government plans to establish an exchange for gold as early as next year to make gold transactions more transparent and discourage the smuggling of the precious metal.

According to the Ministry of Finance and Economy, the government will set up an exchange, an organization to manage and supervise gold distribution, next year to stem any illegal transactions and distribution of gold.

It will expand the exchange into a comprehensive commodity exchange, like New York Mercantile Exchange (NYMEX), to deal with not only gold, but diamond, crude oil and other commodities as well.

The exchange will operate separately from the Korea Exchange (KRX) on which stocks, bonds and derivatives are traded, the ministry said."

source

GCQ7

Gold, Silver, Platinum & Palladium all up on the day.

Two hours sticks chart of COMEX August gold contract looking very similar to the COMEX September silver chart I posted two days ago.

Japan Should Diversify Reserves

Markets normally lead the press…

Japan Should Diversify Reserves, Abe Adviser Ito Says

By Shigeki Nozawa

July 11 (Bloomberg) -- Japan, the largest overseas holder of U.S. Treasuries, should invest $700 billion of its currency reserves in higher-yielding assets such as stocks and corporate bonds, said Takatoshi Ito, an adviser to the prime minister.

The reserves should be managed by a special fund that will gradually diversify into euros, Australian dollars and emerging- market currencies, Ito said in an interview in Tokyo.

Central banks in South Korea, China and Taiwan have announced plans to buy assets with higher returns than U.S. debt, contributing to a 7.4 percent drop in the dollar against the euro in the past year. -source



Long term 27 years Gold / Yen Chart (XAUJPY) Price scale : 10K Yen per Gold Troy Ounce.

XAU, XAG & Forex Commentary

Not much change in the USD price of gold (xauusd) today. Gold futures traded and closed slightly higher but priced in Euro and Yen gold is actually down today.

The Euro made a new all time high vs. the USD, EURUSD ~= 1.3740. Note that pre issued Euro high was EURUSD 1.4750, Long term (30 years) retro perspective EUR/USD chart.

Marginal carry traders capitulated as the Yen rallied strongly. Be careful with that one! , Seems like the carry trade become way over crowded as every one and his dog doing the thing.

Silver up, the high of the day was 13.085 for SIU7 (COMEX September contract)

Silver SIU7 Intraday Chart (2 hours sticks)

It Is What It Is.

It is always nice to see the price of gold performing well on a day when other currencies are basically idle. The price of gold climbed through several horizontal and diagonal resistance levels, the process was very quick. Gold charts of multiple time frames are now looking much better. Today just proves that buy and hold can work on some occasions, especially when quick mark ups are expected.

If you followed my posts you should know what my expectation is and there is not much more to add at this point.

Here is an example for one of the positive developments taking place:

Not perfect but this semi inverted head and shoulders pattern has a target of 677$.

Gold Spot (XAUUSD) Intra Day (four hours sticks) Chart