Daily Brief – Gold

Gold

Another week and another high for Gold at $3045. It’s not just the fear factor that leads investors to buy Gold, it’s the Central Bank buying in a bid to diversify away from USD. In the past 3 years, that buying has amounted to over 1000 tons led by China and India, but also other countries including predominantly Turkey and Poland. Gold, it should be remembered, earns no interest so the question is whether that Central Bank buying will continue at the same rate, and consequently how much higher the price can go. One Australian publication predicted over this past weekend that Gold is set for a 16% setback given its sharp run up from $2000.

EUR/JPY 161.55.

Tokyo Summit

China, Japan and South Korea met on Saturday in a welcome move in an increasingly diplomatically disjointed world to discuss mutual issues on economics and security. Given the combined populations of 1.6 billion and economic heft of $24 trillion, of those 3 nations their viewpoints have to be taken into account by the other US dominated geopolitical initiatives.

EUR/USD 1.0818.

Wastewater

A study of wastewater in 130 European cities for traces of drugs including cocaine, amphetamines, cannabis and ketamine has thrown up no surprises whatsoever: there is a widespread use of drugs in all cities. The where is more interesting with Northern European cities leading the field: Brussels, Amsterdam and Antwerp top the tables in all of the analysis. So Belgian and Dutch cities have the highest concentration and greatest consumption of drugs which suggests that its not just the weather but the geography that leads to the highest incidences given the juxtaposition of all of those cities to large ports that would seem to do it.

GBP/USD 1.2919.

Extreme Road Trips

What this is is visiting another country’s principal city before returning home in a single day – and it’s now a thing. Paris, Brussels and Amsterdam are all easy wins but Reykjavik, Bergamo and Prague are also possible and cheaply achieved.

EUR/GBP 0.8375.

Hello

This day in 1984 former Commodores front man, Lionel Richie took the UK Number 1 slot with this number. Unsurprisingly with lyrics like these, it shot up all of the charts for balladeer Lionel Richie and cemented his role as go to singer songwriter; he went on to sell over 100 million records in the course of his career.

I’ve been alone with you inside my mind
And in my dreams, I’ve kissed your lips a thousand times
I sometimes see you pass outside my door
Hello
Is it me you’re looking for?
I can see it in your eyes
I can see it in your smile
You’re all I’ve ever wanted
And my arms are open wide
‘Cause you know just what to say
And you know just what to do
And I want to tell you so much
I love you
I long to see the sunlight in your hair
And tell you time and time again how much I care
Sometimes I feel my heart will overflow
Hello
I’ve just got to let you know
‘Cause I wonder where you are
And I wonder what you do
Are you somewhere feeling lonely?
Or is someone loving you?
Tell me how to win your heart
For I haven’t got a clue
But let me start by saying
I love you

Discussion and Analysis by Humphrey Percy, Chairman and Founder

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