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Gold Falls as Investors Await G-7 Announcement

Release Date: 
Monday, February 11, 2013

Gold prices tumbled on the New York Spot Market in morning trading as investors moved to the sidelines to await news from the G-7 summit on the looming currency wars. A number of nations, including the U.S., Japan and China, have adopted policies which devalue their currencies to bolster their economies. The so-called G-7 nations are reportedly discussing a commitment to “market-determined” exchanges rates.

“The speculation over the G-7 statement is having an impact on gold and silver as traders are ‘squaring off their open positions,’ preferring to remain on the sidelines before a meeting expected later this week,’” a bullion consultant told MarketWatch. (You can read more about the global currency devaluations and possible currency wars in Goldline’s most recent American Advisor newsletter which is available by calling 800-963-9798.)

As of 9:3 5 a.m. PT, gold was trading at $1646.90, down $21.30. Silver fell to $30.99, down $0.54.

Gold prices were further affected the commencement of the Asian Lunar New Year. “Due to the Chinese New Year, volume is thinner…and is subject to some increased volatility,” the director of metals trading with Vision Financial Markets explained to Kitco News. “You saw it drifting lower for the bulk of the overnight session as physical buyers from Asia were on the sidelines. So you’re lacking some of the normal support you would see into a break.”

Harry Colvin, director and senior economist at Longview Economics, said last week the gold price could rise between $300-400 this year, breaking through the $2,000 per ounce mark. "Everyone is always bearish at the lows, that's the time to buy it, we're going to get a good rally this year.”

His view was echoed by Eugen Weinberg, head of commodities research at Commerzbank, who believes, as inflationary pressures become more visible in the second-half of the year, gold prices could hit $2,000 at some point in the fourth quarter or early 2014.

If you have questions or would like to acquire gold or silver, Goldline’s Account Executives are here to help. Call us today at 866-867-4466.

Goldline’s Extended PGP

For a limited time, Goldline has extended its Price Guarantee Program on qualifying products such as the popular limited production War of 1812 gold and silver bullion coins and U.S.-Australian WWII gold bullion coin. With this special, Goldline clients who purchase over $10,000 in qualified gold and silver coins may call Goldline if the price of their coins falls within 30 days of purchase and reprice their order at the lower price*. Ask a Goldline Account Executive for the full details.

Goldline’s PGP is just part of the Goldline Difference. To learn more about the benefits of working with Goldline, an industry leader helping people buy gold and silver for more than fifty years, click here. Or call our Account Executives at 866-867-4466.

Production of the Exclusive War of 1812 Gold and Silver Coins Ends in March

Goldline is the exclusive dealer of the Royal Canadian Mint’s new ¼ ounce gold bullion coins commemorating the bicentennial of the War of 1812 and The Perth Mint’s limited production U.S-Australian WWII gold bullion coin.

Key coin features:
- .9999 fine content, guaranteed for weight and purity
- Uncirculated condition
- Limited production
- Qualifies for precious metals IRAs

The Royal Canadian Mint will end production of these exclusive coins on March 31, 2013. For more information on these exclusive coins, click here or call 866-867-4466 to speak with a Goldline Account Executive.


(Sources: “Gold hit on worry of possible G-7 currency salvo,” MarketWatch, February 11, 2013; “FOCUS: Holiday-Related Lull In Asian Buying, Technicals Push Gold To Five-Week Low,” Kitco.com, February 11, 2013; ““Inflation or Not, Gold Will Still Break $2,000: Analyst,” CNBC, February 4, 2013.)

* Please review our Account Agreement for additional conditions

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†This material has been prepared for private use. Although the information in this commentary has been obtained from sources believed to be reliable, Goldline does not guarantee its accuracy and such information may be incomplete or condensed. The opinions expressed are subject to change without notice.

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