Best of the Week
Most Popular
1. US Housing Market Real Estate Crash The Next Shoe To Drop – Part II - Chris_Vermeulen
2.The Coronavirus Greatest Economic Depression in History? - Nadeem_Walayat
3.US Real Estate Housing Market Crash Is The Next Shoe To Drop - Chris_Vermeulen
4.Coronavirus Stock Market Trend Implications and AI Mega-trend Stocks Buying Levels - Nadeem_Walayat
5. Are Coronavirus Death Statistics Exaggerated? Worse than Seasonal Flu or Not?- Nadeem_Walayat
6.Coronavirus Stock Market Trend Implications, Global Recession and AI Stocks Buying Levels - Nadeem_Walayat
7.US Fourth Turning Accelerating Towards Debt Climax - James_Quinn
8.Dow Stock Market Trend Analysis and Forecast - Nadeem_Walayat
9.Britain's FAKE Coronavirus Death Statistics Exposed - Nadeem_Walayat
10.Commodity Markets Crash Catastrophe Charts - Rambus_Chartology
Last 7 days
Silver Bull Market Update - 7th Aug 20
This Inflation-Adjusted Silver Chart Tells An Interesting Story - 7th Aug 20
The Great American Housing Boom Has Begun - 7th Aug 20
NATURAL GAS BEGINS UPSIDE BREAKOUT MOVE - 7th Aug 20
Know About Lotteries With The Best Odds Of Winning - 7th Aug 20
Could Gold Price Reach $7,000 by 2030? - 6th Aug 20
Bananas for All! Keep Dancing… FOMC - 6th Aug 20
How to Do Bets During This Time - 6th Aug 20
How to develop your stock trading strategy - 6th Aug 20
Stock Investors What to do if Trump Bans TikTok - 5th Aug 20
Gold Trifecta of Key Signals for Gold Mining Stocks - 5th Aug 20
ARE YOU LOVING YOUR SERVITUDE? - 5th Aug 20
Stock Market Uptrend Continues? - 4th Aug 20
The Dimensions of Covid-19: The Hong Kong Flu Redux - 4th Aug 20
High Yield Junk Bonds Are Hot Again -- Despite Warning Signs - 4th Aug 20
Gold Stocks Autumn Rally - 4th Aug 20
“Government Sachs” Is Worried About the Federal Reserve Note - 4th Aug 20
Gold Miners Still Pushing That Cart of Rocks Up Hill - 4th Aug 20
UK Government to Cancel Christmas - Crazy Covid Eid 2020! - 4th Aug 20
Covid-19 Exposes NHS Institutional Racism Against Black and Asian Staff and Patients - 4th Aug 20
How Sony Is Fueling the Computer Vision Boom - 3rd Aug 20
Computer Gaming System Rig Top Tips For 6 Years Future Proofing Build Spec - 3rd Aug 20
Cornwwall Bude Caravan Park Holidays 2020 - Look Inside Holiday Resort Caravan - 3rd Aug 20
UK Caravan Park Holidays 2020 Review - Hoseasons Cayton Bay North East England - 3rd Aug 20
Best Travel Bags for 2020 Summer Holidays , Back Sling packs, water proof, money belt and tactical - 3rd Aug 20
Precious Metals Warn Of Increased Volatility Ahead - 2nd Aug 20
The Key USDX Sign for Gold and Silver - 2nd Aug 20
Corona Crisis Will Have Lasting Impact on Gold Market - 2nd Aug 20
Gold & Silver: Two Pictures - 1st Aug 20
The Bullish Case for Stocks Isn't Over Yet - 1st Aug 20
Is Gold Price Action Warning Of Imminent Monetary Collapse - Part 2? - 1st Aug 20
Will America Accept the World's Worst Pandemic Response Government - 1st Aug 20
Stock Market Technical Patterns, Future Expectations and More – Part II - 1st Aug 20
Trump White House Accelerating Toward a US Dollar Crisis - 31st Jul 20
Why US Commercial Real Estate is Set to Get Slammed - 31st Jul 20
Gold Price Blows Through Upside Resistance - The Chase Is On - 31st Jul 20
Is Crude Oil Price Setting Up for a Waterfall Decline? - 31st Jul 20
Stock Market Technical Patterns, Future Expectations and More - 30th Jul 20
Why Big Money Is Already Pouring Into Edge Computing Tech Stocks - 30th Jul 20
Economic and Geopolitical Worries Fuel Gold’s Rally - 30th Jul 20
How to Finance an Investment Property - 30th Jul 20
I Hate Banks - Including Goldman Sachs - 29th Jul 20
NASDAQ Stock Market Double Top & Price Channels Suggest Pending Price Correction - 29th Jul 20
Silver Price Surge Leaves Naysayers in the Dust - 29th Jul 20
UK Supermarket Covid-19 Shop - Few Masks, Lack of Social Distancing (Tesco) - 29th Jul 20
Budgie Clipped Wings, How Long Before it Can Fly Again? - 29th Jul 20
How To Take Advantage Of Tesla's 400% Stock Surge - 29th Jul 20
Gold Makes Record High and Targets $6,000 in New Bull Cycle - 28th Jul 20
Gold Strong Signal For A Secular Bull Market - 28th Jul 20
Anatomy of a Gold and Silver Precious Metals Bull Market - 28th Jul 20
Shopify Is Seizing an $80 Billion Pot of Gold - 28th Jul 20
Stock Market Minor Correction Underway - 28th Jul 20
Why College Is Never Coming Back - 27th Jul 20
Stocks Disconnect from Economy, Gold Responds - 27th Jul 20
Silver Begins Big Upside Rally Attempt - 27th Jul 20
The Gold and Silver Markets Have Changed… What About You? - 27th Jul 20
Google, Apple And Amazon Are Leading A $30 Trillion Assault On Wall Street - 27th Jul 20
This Stock Market Indicator Reaches "Lowest Level in Nearly 20 Years" - 26th Jul 20
New Wave of Economic Stimulus Lifts Gold Price - 26th Jul 20
Stock Market Slow Grind Higher Above the Early June Stock Highs - 26th Jul 20
How High Will Silver Go? - 25th Jul 20
If You Own Gold, Look Out Below - 25th Jul 20
Crude Oil and Energy Sets Up Near Major Resistance – Breakdown Pending - 25th Jul 20
FREE Access to Premium Market Forecasts by Elliott Wave International - 25th Jul 20
The Promise of Silver as August Approaches: Accumulation and Conversation - 25th Jul 20
The Silver Bull Gateway is at Hand - 24th Jul 20
The Prospects of S&P 500 Above the Early June Highs - 24th Jul 20
How Silver Could Surpass Its All-Time High - 24th Jul 20

Market Oracle FREE Newsletter

How to Get Rich Investing in Stocks by Riding the Electron Wave

Asian Gold Demand Still Lacking as Vietnam Bans Monetary Use

Commodities / Gold and Silver 2012 Apr 05, 2012 - 09:59 AM GMT

By: Adrian_Ash

Commodities

Best Financial Markets Analysis ArticleGOLD and SILVER ticked higher from Wednesday evening's 3-month lows in London on Thursday, going into the long Easter weekend with gold trading 0.7% higher against the US Dollar.

Silver bullion rallied 2.2% from last night's low, but held one-third below the 3-decade peak near $50 per ounce hit at Easter 2011.


The single Euro currency meantime slid near $1.3050 – dropping 3¢ for the week – after Wednesday's weak auction of new Spanish debt was followed on Thursday by news of a drop in Germany's industrial output.

Losing 1.1% in gold bullion terms on Thursday, the Euro also dipped briefly through CHF1.20 – the floor set by the Swiss National Bank last September, and since defended by selling Francs to buy Euros in a bid to maintain Switzerland's export competitiveness.

Ahead of the 4-day Easter weekend – in which London's gold trading banks will stay closed until Tuesday – Spanish bond yields jumped again, erasing the dip seen since the European Central Bank began lending Eurozone banks more than €1 trillion in December.

The Dax index of German stocks today slid 0.9%, extending its Easter-week drop to 3.2%.

Bullion analysts and professionals trading gold have "turned bearish for the first time this year," according to Bloomberg's latest weekly survey.

"Fifteen of 29 analysts surveyed by Bloomberg expect prices to decline next week and five were neutral," says the newswire, "the highest proportion since Dec. 30."

The final week of Dec. 2011 saw gold begin a 17% rally over the following 9 weeks.

"We would not be surprised to see a move down in gold," says a note from bullion-bank Scotia Mocatta today, "but as concerns about Europe's debt are resurfacing, the downside may be limited and safe-haven buying may soon return with vigour."

"Asian interest in precious metals remained severely lacking [this morning]," says Standard Bank's London team. "Nevertheless, there was enough interest again...to keep prices relatively stable."

Over in Vietnam today, and "after a few dozen drafts" reports TuoitreNews.vn, "the final decree on the management of gold trading activities, a very important document with a strong influence on the domestic gold market, has been signed by the Prime Minister."

Hanoi's new decree brings together Vietnam's piecemeal controls on gold trading of 2011, banning the use of gold as money, such as making large payments in real estate deals, as well as manufacturing or trading gold without the requisite licenses.

Across in India – the world's No.1 private gold consumer, where a 3-week long strike by jewelers protesting against a series of tax and duty hikes turned violent on Monday, with protesters clashing with police in Mumbai and disrupting trains in Ghaziabad – commercial banks now have to submit a raft of new monthly and twice-annual reports to the Reserve Bank of India stating the volume and value of their gold imports.

"We all know that gold is a deep-rooted part of our cultural heritage," says Mehul Choksi, chairman and managing director of Mumbai-based Gitanjali Gems Ltd.

"[Gold] also serves as a highly liquid form of savings and a hedge against inflation, having appreciated much faster than other asset classes.

"Naturally, we cannot expect this demand to suddenly disappear. And, since India produces virtually no gold, demand has to be met entirely through imports – legal or illegal!"

“The four per cent duty might be perceived as an irritant," counters T R Rustagi, former joint secretary of the Central Board of Excise & Customs, also writing in the Business Standard. "But arguably it cannot be the cause for smuggling.

"Its avoidance may not be lucrative enough for smugglers to take risks," says Rustagi, contrasting today's 4% duty with the 15% in place when India repealed its Gold Control Act, liberalizing the legal import of gold bullion in 1990.

"We are expecting [finance minister] Pranab Mukherjee to offer a feasible solution very soon," says Bacchraj Bamalwa, chairman of the Gems & Jewellery Federation of India, warning that 1,000 crore Rupees in gold trading – equal to some $200m – is being lost by the industry each day.

Reports from the Bombay Bullion Association said this week that gold imports to India have fallen by one-half so far in 2012 from the start of 2011.

India's second-largest jewelry business by stock-market capitalization, Gitanjali's share price has dropped 20% on the BSE since hitting a four-year high in early Feb.

By Adrian Ash
BullionVault.com

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

Formerly City correspondent for The Daily Reckoning in London and a regular contributor to MoneyWeek magazine, Adrian Ash is the editor of Gold News and head of research at www.BullionVault.com , giving you direct access to investment gold, vaulted in Zurich , on $3 spreads and 0.8% dealing fees.

(c) BullionVault 2012

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.


© 2005-2019 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

6 Critical Money Making Rules