Gold Price Today – September 12th 2012
The spot gold price today rose in the first hours of the London session to a peak at about $ 1746. The price increase was supported by the news coming out of Germany that the constitutional court decided that the European Stability Mechanism (the bailout fund) is not in conflict with the country’s Constitution. Shortly after, the gold price started a steady decline, which accelerated somewhere in the midst of the New York session. The lows of the day were at just below $ 1730. The decline was probably due to a combination of some profit taking (after three weeks of strong price increases) and speculation on tomorrow’s meeting of the US Fed (where potentially additional monetary easing could be decided and announced).
The London Gold Fixing today:
- AM fix : $ 1742.75, £ 1081.714, € 1352.227
- PM fix : $ 1737.00, £ 1078.949, € 1346.094
Since the lows in the gold price mid August, dollar gold has risen 8,1% and euro gold has gained some 3% in value. We are not yet close to the $ 5000 gold that respected gold mining entrepreneur Robert McEwen is predicting, but the gold price is showing clear strength in the past few weeks and days. It’s very plausible however that were about to witness a pause or pullback. Much will depend on the outcome of the US Fed’s meeting on Thursday 13th September.
All investors’ eyes are fixed on tomorrow’s Fed’s meeting. In that respect, Bloomberg writes that “Two rounds of bond purchases totaling $2.3 trillion have failed to breathe life into the labor market, which Bernanke said last month is a “grave concern.” That means policy makers will probably announce a new open-ended plan tied to a sustained improvement in the economy rather than specify an amount of purchases and an end-date, according to 32 of the 73 economists in the survey.”
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