Gold price now at near 4 month highs as another clearing house accepts gold for margin

The rally in the gold price this week is continuing with gold touching $1645 this morning, a level last seen nearly 4 months ago. The gold price is now up 2% on the week but more importantly it now looks like that 4 month trading range has been broken to the upside.

Gold $:

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In terms of the € gold price we’re now only less than 3% away from making fresh all time highs.

Gold €:

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Gold £:

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And just to add more weight to the bullish argument we have LCH.Clearnet announcing that it will now accept gold for collateral against margin requirements:

U.K.-based clearing house LCH.Clearnet Group Ltd. said Tuesday that it will accept gold as collateral for margin cover purposes starting Aug. 28.

The clearing house said the option would be available for members clearing over-the-counter precious metals forward contracts or precious metals contracts on the Hong Kong Mercantile Exchange.

Something we said they were considering doing back in 2011.

This of course comes on the back of another clearing house (CME Clearing Europe) announcing that they are doing the same thing at the start of this week.

But of course gold isn’t money though right… right?

Related posts:

1. UK inflation rises to 0.6 month on month – that’s 7.2% annualised – gold price drops on the news
2. Gold price only 6% away from making all time highs in Euros
3. UK home prices FALL (not rise) 0.4% month on month in October
4. Gold price up 1.5% for the week and up 6% from lows a month ago
5. Gold price in pounds reaches £1125 – only 6% off all time highs

Link to this article: : http://www.goldmadesimplenews.com/gold/7714-7714/

Posted by Thomas Paterson on Aug 22 2012. Filed under Gold News. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.