Most Popular
1. Banking Crisis is Stocks Bull Market Buying Opportunity - Nadeem_Walayat
2.The Crypto Signal for the Precious Metals Market - P_Radomski_CFA
3. One Possible Outcome to a New World Order - Raymond_Matison
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
5. Apple AAPL Stock Trend and Earnings Analysis - Nadeem_Walayat
6.AI, Stocks, and Gold Stocks – Connected After All - P_Radomski_CFA
7.Stock Market CHEAT SHEET - - Nadeem_Walayat
8.US Debt Ceiling Crisis Smoke and Mirrors Circus - Nadeem_Walayat
9.Silver Price May Explode - Avi_Gilburt
10.More US Banks Could Collapse -- A Lot More- EWI
Last 7 days
Stock Market Volatility (VIX) - 25th Mar 24
Stock Market Investor Sentiment - 25th Mar 24
The Federal Reserve Didn't Do Anything But It Had Plenty to Say - 25th Mar 24
Stock Market Breadth - 24th Mar 24
Stock Market Margin Debt Indicator - 24th Mar 24
It’s Easy to Scream Stocks Bubble! - 24th Mar 24
Stocks: What to Make of All This Insider Selling- 24th Mar 24
Money Supply Continues To Fall, Economy Worsens – Investors Don’t Care - 24th Mar 24
Get an Edge in the Crypto Market with Order Flow - 24th Mar 24
US Presidential Election Cycle and Recessions - 18th Mar 24
US Recession Already Happened in 2022! - 18th Mar 24
AI can now remember everything you say - 18th Mar 24
Bitcoin Crypto Mania 2024 - MicroStrategy MSTR Blow off Top! - 14th Mar 24
Bitcoin Gravy Train Trend Forecast 2024 - 11th Mar 24
Gold and the Long-Term Inflation Cycle - 11th Mar 24
Fed’s Next Intertest Rate Move might not align with popular consensus - 11th Mar 24
Two Reasons The Fed Manipulates Interest Rates - 11th Mar 24
US Dollar Trend 2024 - 9th Mar 2024
The Bond Trade and Interest Rates - 9th Mar 2024
Investors Don’t Believe the Gold Rally, Still Prefer General Stocks - 9th Mar 2024
Paper Gold Vs. Real Gold: It's Important to Know the Difference - 9th Mar 2024
Stocks: What This "Record Extreme" Indicator May Be Signaling - 9th Mar 2024
My 3 Favorite Trade Setups - Elliott Wave Course - 9th Mar 2024
Bitcoin Crypto Bubble Mania! - 4th Mar 2024
US Interest Rates - When WIll the Fed Pivot - 1st Mar 2024
S&P Stock Market Real Earnings Yield - 29th Feb 2024
US Unemployment is a Fake Statistic - 29th Feb 2024
U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - 29th Feb 2024
What a Breakdown in Silver Mining Stocks! What an Opportunity! - 29th Feb 2024
Why AI will Soon become SA - Synthetic Intelligence - The Machine Learning Megatrend - 29th Feb 2024
Keep Calm and Carry on Buying Quantum AI Tech Stocks - 19th Feb 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

China "Overtakes India" as Gold #1 as Bargain-Buying "Supports Prices"

Commodities / Gold and Silver 2013 Sep 24, 2013 - 03:26 PM GMT

By: Adrian_Ash

Commodities

The PRICE of wholesale gold retreated to yesterday's low at $1315 per ounce in London trade Tuesday morning, drifting down as world stock markets and commodity prices also slipped.
 
The US Dollar extended its rally on the FX market, nudging the Euro back towards 1-week lows beneath $1.3450.


That move held gold for Eurozone buyers around €975 per ounce, some 4% below last Thursday's 1-week highs.
 
Major government bonds ticked higher, meantime, nudging the yield on 10-year US Treasury debt down to a 6-week low of 2.68%.
 
Silver prices were more volatile than gold, moving 2% down from a high of $22.02 per ounce set early in Asian trade.
 
"Despite ongoing outflows from the gold ETFs," says German bank Commerzbank in a commodities note, "physical demand from Asia could offer some support to prices."
 
Ahead of China's Golden Week holidays – which officially start next Tuesday – "gold buyers are likely to take advantage of the lower price level to stock up," says Commerzbank.
 
Traditionally the largest market for buying gold, "[India] this year it looks very likely to be eclipsed by Chinese demand," writes SocGen analyst Robin Bhar in a new note today, "possibly by as much as 100 tonnes when all areas of fabrication (and hoarding) are taken into account.
 
"Part of the reason for this is the explosion in Chinese demand."
 
Gold consumers bargain-buying in current world No.1 India should encourage fresh imports, Commerzbank reckons, after a virtual shutdown over the summer.
 
"The festival and wedding season is just around the corner. [This peak for gold demand] should be even more buoyant this year thanks to a good monsoon [and] preclude any continued slide in the price of gold."
 
Neighboring Dubai however – through which 25% of the world's annual gold flows pass, according to Reuters – has seen trade decline by three-fifths as a result of India's strict anti-import measures taken in 2013, local dealers report.
 
"Even once [India's] imports have re-started," the newswire quotes a trading house executive, "we will not see the same kind of volumes that we used to see earlier," when the first-half of 2013 saw flows to India rise 10% from the same period last year.
 
Thanks to confusion over India's new import rules – under which 20% of new gold shipments must be set aside for re-export – lack of material saw the value of India's gold jewelry exports drop almost 60% over the last 5 months vs. April-to-August 2012, the Gems & Jewellery Export Promotion Council (GJEPC) said today.
 
The world's largest gold jewelry exporter, India saw a slight uptick in August's sales from July.
 
But right now, the "issue is getting the raw material even if they have export orders," Reuters quotes Colin Shah at Mumbai-based exporter Kama Schachter.
 
Back in China, "Most jewelers have already stocked up in anticipation of Golden Week," Bloomberg today quotes Wang Xiaoli at CITICS Futures Co., part of the country's largest brokerage.
 
But "physical purchases are steady when prices fall."

By Adrian Ash
BullionVault.com

Gold price chart, no delay   |   Buy gold online at live prices

Adrian Ash is head of research at BullionVault, the secure, low-cost gold and silver market for private investors online, where you can buy gold and silver in Zurich, Switzerland for just 0.5% commission.

(c) BullionVault 2013

Please Note: This article is to inform your thinking, not lead it. Only you can decide the best place for your money, and any decision you make will put your money at risk. Information or data included here may have already been overtaken by events – and must be verified elsewhere – should you choose to act on it.

Adrian Ash Archive

© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in