Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
Gold Price Slowly Going Nowhere - 20th Oct 21
Shocking Numbers Show Government Crowding Out Real Economy - 20th Oct 21
Crude Oil Is in the Fast Lane, But Where Is It Going? - 20th Oct 21
3 Tech Stocks That Could Change The World - 20th Oct 21
Best AI Tech Stocks ETF and Investment Trusts - 19th Oct 21
Gold Mining Stocks: Will Investors Dump the Laggards? - 19th Oct 21
The Most Exciting Medical Breakthrough Of The Decade? - 19th Oct 21
Prices Rising as New Dangers Point to Hard Assets - 19th Oct 21
It’s not just Copper; GYX indicated cyclical the whole time - 19th Oct 21
Chinese Tech Stocks CCP Paranoia, VIES - Variable Interest Entities - 19th Oct 21
Inflation Peaked Again, Right? - 19th Oct 21
Gold Stocks Bouncing Hard - 19th Oct 21
Stock Market New Intermediate Bottom Forming? - 19th Oct 21
Beware, Gold Bulls — That’s the Beginning of the End - 18th Oct 21
Gold Price Flag Suggests A Big Rally May Start Soon - 18th Oct 21
Inflation Or Deflation – End Result Is Still Depression - 18th Oct 21
A.I. Breakthrough Could Disrupt the $11 Trillion Medical Sector - 18th Oct 21
US Economy and Stock Market Addicted to Deficit Spending - 17th Oct 21
The Gold Price And Inflation - 17th Oct 21
Went Long the Crude Oil? Beware of the Headwinds Ahead… - 17th Oct 21
Watch These Next-gen Cloud Computing Stocks - 17th Oct 21
Overclockers UK Custom Built PC 1 YEAR Use Review Verdict - Does it Still Work? - 16th Oct 21
Altonville Mine Tours Maze at Alton Towers Scarefest 2021 - 16th Oct 21
How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
The Only way to Crush Inflation (not stocks) - 14th Oct 21
Why "Losses Are the Norm" in the Stock Market - 14th Oct 21
Sub Species Castle Maze at Alton Towers Scarefest 2021 - 14th Oct 21
Which Wallet is Best for Storing NFTs? - 14th Oct 21
Ailing UK Pound Has Global Effects - 14th Oct 21
How to Get 6 Years Life Out of Your Overclocked PC System, Optimum GPU, CPU and MB Performance - 13th Oct 21
The Demand Shock of 2022 - 12th Oct 21
4 Reasons Why NFTs Could Be The Future - 12th Oct 21
Crimex Silver: Murder Most Foul - 12th Oct 21
Bitcoin Rockets In Preparation For Liftoff To $100,000 - 12th Oct 21
INTEL Tech Stock to the MOON! INTC 2000 vs 2021 Market Bubble WARNING - 11th Oct 21
AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
Stock Market Wall of Worry Meets NFPs - 11th Oct 21
Stock Market Intermediate Correction Continues - 11th Oct 21
China / US Stock Markets Divergence - 10th Oct 21
Can US Save Taiwan From China? Taiwan Strait Naval Battle - PLA vs 7th Fleet War Game Simulation - 10th Oct 21
Gold Price Outlook: The Inflation Chasm Between Europe and the US - 10th Oct 21
US Real Estate ETFs React To Rising Housing Market Mortgage Interest Rates - 10th Oct 21
US China War over Taiwan Simulation 2021, Invasion Forecast - Who Will Win? - 9th Oct 21
When Will the Fed Taper? - 9th Oct 21
Dancing with Ghouls and Ghosts at Alton Towers Scarefest 2021 - 9th Oct 21
Stock Market FOMO Going into Crash Season - 8th Oct 21
Scan Computers - Custom Build PC 6 Months Later, Reliability, Issues, Quality of Tech Support Review - 8th Oct 21
Gold and Silver: Your Financial Main Battle Tanks - 8th Oct 21
How to handle the “Twin Crises” Evergrande and Debt Ceiling Threatening Stocks - 8th Oct 21
Why a Peak in US Home Prices May Be Approaching - 8th Oct 21
Alton Towers Scarefest is BACK! Post Pandemic Frights Begin, What it's Like to Enter Scarefest 2021 - 8th Oct 21
AJ Bell vs II Interactive Investor - Which Platform is Best for Buying US FAANG Stocks UK Investing - 7th Oct 21
Gold: Evergrande Investors' Savior - 7th Oct 21
Here's What Really Sets Interest Rates (Not Central Banks) - 7th Oct 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Gold Holding Steady as Chinese Demand Slows

Commodities / Gold and Silver 2013 Jan 23, 2013 - 04:11 PM GMT

By: Ben_Traynor

Commodities

GOLD continued to hover near one-month highs above $1690 an ounce Wednesday morning, where it has spent most of this week, with dealers in India and China citing a slowdown in physical bullion demand.

Silver climbed above $32.30 an ounce, a one-month high, as stocks and commodities were broadly flat and US Treasuries gained.


"A clear break [for gold] of $1694 would take our view to bullish," says the latest technical analysis from bullion bank Scotia Mocatta, which adds that "support is at $1666."

"Typically we should see a lot of buying from China around this time of the year, but we are not," one Singapore-based dealer told newswire Reuters this morning.

"They may have already stocked up for the holiday demand."

China celebrates its Lunar New Year on February 10, a festival typically associated with a rise in gold buying.

Over in India, traditionally the world's biggest gold buying nation, "the market remains quiet with the wedding season drawing to a close," says a note from Societe Generale, which adds that India's decision to raise gold import duties will have an impact on demand for small gold bars.

"Dealers [however] are expecting a revival in interest on the back of an appreciating Rupee."

Moves to reduce the level of bullion imports will promote confidence in the Rupee, agrees HSBC Global Asset Management, which predicts increased investment flows into the country.

This year and next could see record average gold prices, according to a survey of analysts by Reuters, but the possibility of tighter monetary policy from central banks could mean the bull market reaches a "plateau", respondents add.

The average silver price is expected to be up in 2013 compared to last year, but down on the 2011 average of $35.25 an ounce, according to the survey.

Buying gold is a good hedge in case "the system goes down", according to Swiss investor Marc Faber, publisher of the 'Gloom, Boom & Doom' report.

"In the worst case scenario, in the systemic failure that I expect, it would still have some value," Faber told an audience in Finland yesterday.

Faber also responded to comments from US economist Robert Shiller, who was also at the event and queried Faber's recommendation to buy gold.

"You keep your US Dollars and I'll keep my gold," said Faber.
"We'll see which one goes to zero first."

In the UK, the Bank of England's Monetary Policy Committee members voted 8-1 against extending quantitative easing at its meeting earlier this month, minutes from the meeting published this morning show.

One member, David Miles, voted to increase QE from the current £375 billion to £400 billion.

"Be in no doubt that we are ready to provide more stimulus if it is needed," the Bank's governor Mervyn King said in a speech in Belfast last night.

"Relying on generalized monetary stimulus alone, however, is not a panacea."

King argued that Britain's government should implement supply-side reform, though he did not give specifics, while also arguing that the Bank should not abandon inflation targeting after King leaves in the summer.

King's appointed replacement, current Bank of Canada governor Mark Carney, suggested last month that a policy of nominal GDP targeting might be more appropriate, whereby the central bank aims to use policy to achieve a given nominal value of economic output.

UK unemployment meantime held steady last month at 4.8%, according to the claimant count measure.

Elsewhere in the UK, prime minister David Cameron promised Britain a referendum on whether or not the country should remain in the European Union, with a date set for 2017.

Across the English Channel, the finance ministers of eleven EU member states, including France, Germany, Italy and Spain, agreed Tuesday to look at introducing a so-called 'Tobin tax' on financial transactions, a move the British government opposes.

Banks in Vietnam have been told by the central bank they must settle all gold bullion loans to their customers by June 30, even though many loans are for a duration of five years or more.

"Banks may have to ask their gold borrowers to convert their loan into Vietnamese dong, or earmark money [for the bank] to buy back the gold," one bank's CEO says.

Many gold owners in Vietnam have had difficulty selling their bullion since the number of dealers authorized to trade was reduced after a central bank decree came into effect last week.

Japan's biggest bullion retailer Tanaka Kikinzoku Kogyo meantime reported that it bought more gold from people than it sold last year for the eighth year running.

By Ben Traynor
BullionVault.com

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

Editor of Gold News, the analysis and investment research site from world-leading gold ownership service BullionVault, Ben Traynor was formerly editor of the Fleet Street Letter, the UK's longest-running investment letter. A Cambridge economics graduate, he is a professional writer and editor with a specialist interest in monetary economics.(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.

Ben Traynor Archive

© 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