Morning Gold Fix – July 1 2010

FMX | Connect – www.fmxconnect.com - (Reported 7/1/2010)

The following is a summary of yesterday’s US gold activity and a recap of Asia & European markets overnight. It includes our proprietary options analytics and news stories from industry professionals.

Summary

August gold was down 3.9 to $1242.0 per 100 troy ounces as of 7:01 AM EST, this morning. The September U.S. dollar index was down .471 to 85.810. July platinum was down 6.5 to $1524.4 per 50 troy ounces. Silver was down 16.1 cents to 18.510.

-Elizabeth Thawne

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Wednesday Options Report

End of Day Straddle Runs

FMX Morning Newswire

Bloomberg (Reported 7/1/2010)

“Gold, little changed in London today, may extend its best quarterly advance since the end of 2007 as concern over the economic recovery spurs demand for bullion as a means of protecting wealth. European equities dropped for a third day after China’s manufacturing growth slowed and Moody’s Investors Service said it may cut Spain’s top credit rating.

Gold climbed 12 percent the previous three months, the seventh straight quarterly gain and the longest winning streak since 1979. ‘Given the current concerns over inflation, slowing economic recovery and European debt the metal may look to extend higher as investors continue to diversify from fiat currencies,’ said James Moore, an analyst at TheBullionDesk.com in London.” Gold May Extend Quarterly Gain as Economic Recovery Concern Spurs Demand

NS Futures (Reported 7/1/2010)

“While some weak handed longs might have exited positions ahead of today’s anticipated Euro bank repayment deadline, a number of longs are expecting to see some turmoil off events in Europe today. Clearly some flight to quality or safe haven longs were forced out in the wake of the smaller than expected Euro zone 3 month tender operation earlier this week.

Equity markets in Asia and in Europe are generally lower this morning, which has led to US stock indices to post moderate losses during the initial Thursday morning trading action. The Dollar has lost some ground against most of the major currencies going into the US opening today.” Daily Metals Commentary 

Reuters (Reported 7/1/2010)

“Gold held steady near $1,240 an ounce in Europe on Thursday, supported by concerns over weak global growth which are weighing on more economically sensitive assets like stocks and industrial commodities. The precious metal is expected to extend its recent gains in the medium term, analysts say, after outperforming most other commodities and all other metals in the second half as investors turned to bullion as a haven from risk in the wider markets.

Spot gold was bid at $1,240.25 an ounce at 0957 GMT, against $1,241.35 late in New York on Wednesday. U.S. gold futures for August delivery eased $4.50 to $1,241.40.” Gold holds near $1,240/oz

TheStreet (Reported 7/1/2010)

“Gold prices were softening Thursday as investors opted for cash at the start of the third quarter. Gold for August delivery was slipping $2.60 to $1,243.30 an ounce at the Comex division of the New York Mercantile Exchange.

The gold price Thursday has traded as high as $1,244.80 and as low as $1,239.10. The U.S. dollar index was losing 0.41% to $85.64 while the euro was rallying 0.64% to $1.23 vs. the dollar.” Gold Prices Down to Begin Third Quarter 

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