Gold market continues to maintain its glitter

board.
The current market shocks are being reflected in gold swings and investors have resorted to owning gold stocks or owning gold physically.
The smart money is being taken into gold pushing investors to change their financial behaviour; gold is not a cheap commodity and is more than a risk tail investment.
The gold market has outperformed any other markets globally.

The Chinese reserves constitutes of 2 percent in gold and looking at it the Chinese have taken a more strategic approach against the huge volatility swings in other markets.
If you are an investor in Zimbabwe and hold gold units with Tetrad Investment Bank that’s a wise decision. The bullion is truly an inflationary hedge and deserves a place in any investor’s portfolio.
Hedge funds, central banks and sovereign wealth funds are all hunting for value and gold gives you that.

Demand is totally compatible with current financial and political global turmoil. Gold reached record levels of US$1 921,15 an ounce on September 6, 2011.
Despite gold’s recent slump on a weaker euro and a stronger dollar that has since made commodities less appealing, but gold still remains the story on the markets.
Prices more than doubled since the end of 2007 as stock markets slumped, economies contracted and central banks and governments pumped more than US$2 trillion into the global financial system. With gold prices remaining the same.

Tetrad Investment Bank would encourage people to keep it in safety-deposit boxes at banks or vaults, which gives that sense of security.
Investors have been accumulating in gold as we are seeing a rebound in the metal after it had tumbled by 20 percent in October. In times of market uncertainty gold is the safest and protects people from financial downturns especially in this volatility in equities and currency devaluation.

Gold continues to trade between US$1 700-US$1 800 and is currently trading at US$1 725,20 an ounce and at such levels it is a buy or your entry point, let your stop loss order be at US$1 700 an ounce.

Gold is simply a mirror of economic and political failure, of all the uncertainties that make people worry. Insights on how commodity and gold prices move and react to news, particularly in this context of higher volatility, can shed light on the macroeconomic factors that drive short-term price patterns.
With the current situation on the market this is useful for Tetrad Investment Bank especially since they are long-term market participants that make their decisions based on price fundamentals, which may be reflected in the release of macroeconomic information.

On the currencies front, the euro declined on European debt contagion concerns as the 17-nation currency slipped against the yen. The euro was trading at 103,67 against the yen and fell to US$1,3536 against the dollar. In London, the pound dropped after an index of UK employers’ hiring weakened as the crisis in the eurozone damped demand for jobs. The pound weakened to

US$1,5745 to the dollar and strengthened against the euro as it was trading at 85,70 pence per euro.
In Japan the yen continues to hurt exporters as it strengthened against the dollar to trade at 76,76 and advanced to 103,67 to the euro. In the South Pacific, the Australian dollar dropped against the dollar discouraging demand for riskier assets.

At the moment the market is focusing attention on Europe and how they are going to solve the debt crisis. The Aussie dollar fell to US$0,9974 from US1,0079 and fell also against the yen to trade at 76,62.

With the current noise coming out of Europe on whether the fate of the euro hangs on better headlines coming from Italy, the question is will austerity measures be enough for Italy.
The Aussie dollar will likely touch US$0,9900 against the dollar using technical analysis unless positive news comes from Europe.
South African markets

The European situation continues to weigh on the South African market pushing the rand to trade within certain ranges.
The rand was re-testing 8,1920 against the dollar in Johannesburg in earlier trade before breaking out to further weaken at 8,2100 to the dollar. The markets remain jittery as we keep seeing huge currency swings affecting exchange rate regime.

Crude oil was re-testing those levels of US$97,99 per barrel before falling to trade at US$97,67 per barrel.