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
Chinese Tech Stocks CCP Paranoia and Best AI Tech Stocks ETF - 26th Oct 21
Food Prices & Farm Inputs Getting Hard to Stomach - 26th Oct 21
Has Zillow’s Collapse Signaled A Warning For The Capital Markets? - 26th Oct 21
Dave Antrobus Welcomes Caribou to Award-Winning Group Inc & Co - 26th Oct 21
Stock Market New Intermediate uptrend - 26th Oct 21
Investing in Crypto Currencies With Both Eyes WIDE OPEN! - 25th Oct 21
Is Bitcoin a Better Inflation Hedge Than Gold? - 25th Oct 21
S&P 500 Stirs the Gold Pot - 25th Oct 21
Stock Market Against Bond Market Odds - 25th Oct 21
Inflation Consequences for the Stock Market, FED Balance Sheet - 24th Oct 21
To Be or Not to Be: How the Evergrande Crisis Can Affect Gold Price - 24th Oct 21
During a Market Mania, "no prudent professional is perceived to add value" - 24th Oct 21
Stock Market S&P500 Rallies Above $4400 – May Attempt To Advance To $4750~$4800 - 24th Oct 21
Inflation and the Crazy Crypto Markets - 23rd Oct 21
Easy PC Upgrades with Motherboard Combos - Overclockers UK Unboxing - MB, Memory and Ryzen 5600x CPU - 23rd Oct 21
Gold Mining Stocks Q3 2021 - 23rd Oct 21
Gold calmly continues cobbling its Handle, Miners lay in wait - 23rd Oct 21
US Economy Has Been in an Economic Depression Since 2008 - 22nd Oct 21
Extreme Ratios Point to Gold and Silver Price Readjustments - 22nd Oct 21
Bitcoin $100K or Ethereum $10K—which happens first? - 22nd Oct 21
This Isn’t Sci-Fi: How AI Is About To Disrupt This $11 Trillion Industry - 22nd Oct 21
Ravencoin RVN About to EXPLODE to NEW HIGHS! Last Chance to Buy Before it goes to the MOON! - 21st Oct 21
Stock Market Animal Spirits Returning - 21st Oct 21
Inflation Advances, and So Does Gold — Except That It Doesn’t - 21st Oct 21
Why A.I. Is About To Trigger The Next Great Medical Breakthrough - 21st Oct 21
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

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Asia "Buys the Dip" in Gold, as Physical Demand Also Jumps But ETF Outflows Continue

Commodities / Gold and Silver 2013 Apr 18, 2013 - 05:09 PM GMT

By: Ben_Traynor

Commodities

WHOLESALE prices for buying gold climbed briefly above $1400 an ounce Thursday morning, having bounced from a $50-an-ounce drop overnight, with dealers reporting strong demand for physical bullion in Asia.

In Hong Kong and Macau, the number of customers visiting stores run by the world's biggest jewelry chain, Chow Tai Fook, jumped by a quarter in the period between Saturday and Tuesday, Bloomberg reports.


"I think if prices fail to break through $1300, people will buy back," says one gold dealer in Hong Kong.

"Asia is a good buyer of gold this year. Stocks at refiners have suddenly disappeared after prices dropped more than $200 [an ounce], and it takes time to manufacture gold bars. Supply is a bit tight. Premiums will move higher next week."

"The culture in Asia is such that they will absorb the physical metal when the price drops," adds Dick Poon, Hong Kong-based general manager at refiner Heraeus.

"Jewelry demand is improving and industrial customers are also buying on the dip."

India, traditionally the world's biggest gold buying nation, has this week seen its strongest demand so far this year, according to the All India Gems & Jewellery Federation. Thailand and Japan have also seen a strong rise in gold sales, according to local press reports.

Western investors have also shown signs of renewed appetite for bullion since gold's price drop. Users of BullionVault, the world's largest gold and silver provider to private investors online, were net buyers of gold for the first time in a week on Wednesday, with inflows of cash outpacing withdrawals by a wide margin.

The US Mint meantime sold 77,000 ounces of American Eagle gold coins during Tuesday and Wednesday, compared to just 62,000 ounces for the whole of March.

"Gold was set up for having a proper correction," says well-known investor Jim Rogers.

"This may be the proper correction and, if so, then it will make a bottom and we can all buy gold again because it is going to be much higher over the decade."

The world's biggest gold exchange traded fund meantime continued to see outflows Wednesday.

The total volume of gold backing shares in the SPDR Gold Trust (ticker: GLD), fell to 1134.8 tonnes, down from 1221.3 tonnes at the start of this month. Holdings of all gold ETFs tracked by Bloomberg are down 3.5% to 2364.9 tonnes this month.

Like gold, silver bounced off an overnight low to end Thursday morning in London back above $23.50 an ounce, while stocks and commodities regained some ground after this week's losses and US Treasuries dipped.

Japan's exports to the US in the year to end March were up 10% from a year earlier, while exports to China dropped 9%, making the US the number one destination for Japanese exports for the first time since 2009, figures published by the country's finance ministry Thursday show.

"This weakness [of exports to China] is more structural than cyclical," Kyohei Morita, chief economist at Barclays in Tokyo.

China's annualized economic growth rate slowed to 7.7% in the first quarter, according to figures released by Beijing earlier this week, down from 7.9% in the previous quarter. Ratings agency Moody's lowered its outlook on China from 'positive' to 'stable' this week, noting concerns over local government debt levels.

In Washington, leaders meeting for the G20 meeting that begins today are expected to commit their countries not to weaken their currencies with a view to gaining a trade advantage, Bloomberg reports. A similar pledge was made in aG7 statement earlier this year.

A month before that statement, Bank of England governor Mervyn King told an audience in Belfast that "between late 2007 and the beginning of 2009...an adjustment of Sterling...was certainly necessary for a full rebalancing of our economy".

Italy's parliament began voting on a new president Thursday, with the bloc led by Pier Luigi Bersani's Democratic Party – which won the most votes of any alliance in February's general election but not enough to form a government – nominating former Senate speaker Franco Marini, who was rejected in this morning's first round of voting.

Once a president is elected their first task will be to preside over the forming of a government, which will involve either a coalition of rival parties, fresh elections, or the appointment of another technocrat prime minister.

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