LIVE Gold Prices $  | E-Mail Subscriptions | Update GoldSeek | GoldSeek Radio 

Commentary : Gold Review : Markets : News Wire : Quotes : Silver : Stocks - Main Page 

 GoldSeek.com >> News >> Story  Disclaimer 
 
Latest Headlines

GoldSeek.com to Launch New Website
By: GoldSeek.com

Is Gold Price Action Warning Of Imminent Monetary Collapse Part 2?
By: Hubert Moolman

Gold and Silver Are Just Getting Started
By: Frank Holmes, US Funds

Silver Makes High Wave Candle at Target – Here’s What to Expect…
By: Clive Maund

Gold Blows Through Upside Resistance - The Chase Is On
By: Avi Gilburt

U.S. Mint To Reduce Gold & Silver Eagle Production Over The Next 12-18 Months
By: Steve St. Angelo, SRSrocco Report

Gold's sharp rise throws Financial Times into an erroneous sulk
By: Chris Powell, GATA

Precious Metals Update Video: Gold's unusual strength
By: Ira Epstein

Asian Metals Market Update: July-29-2020
By: Chintan Karnani, Insignia Consultants

Gold's rise is a 'mystery' because journalism always fails to pursue it
By: Chris Powell, GATA

 
Search

GoldSeek Web

 
Weak US Data See Precious Metals Rise on "Ugly Truth" of Fed Policy



-- Posted Wednesday, 30 October 2013 | | Disqus

BullionVault

London Gold Market Report

From Adrian Ash

 

BOTH gold and silver rose Wednesday lunchtime in London, as the day's widely-expected "no change" decision from the US Federal Reserve was preceded by weak US data.

 

The private-sector ADP Payrolls report said the US economy added only 130,000 jobs last month, rather than the 150,000 analysts forecast.

 

US inflation also lagged consensus forecasts, as did Germany's consumer price index, which showed a 0.2% fall this month from September.

 

Gold added 0.5% to $1358 per ounce. Silver prices gained 1.4% to break above $23 per ounce for the first time in 6 weeks.

 

"We are concerned that the ugly truth is that money printing remains the major prop keeping the global economy from toppling over," says John Chatfeild-Roberts, part of the multi-manager Merlin team at UK fund giant Jupiter.

 

Underperforming their benchmarks in 2013 thanks to the falling gold price, Merlin's managers warn that quantitative easing "[may] be enough to tide us over until the buttressing effect of sustainable economic growth emerges.

 

"[But] the alternative scenario helps to explain why gold remains of value in what appears to be a precarious future."

 

"The global economy," writes Marcus Grubb, director at market-development organization the World Gold Council in its latest Gold Investor report, "has come a long way since the 2008-2009 financial crisis and its aftermath."

 

But with growth weak and financial markets volatile, investors "[should] apply the single most important lesson learned during the Great Recession: risk management matters."

 

Advising that gold remains integral to long-term investor holdings, Grubb's team go on to explain "why a 2% to 10% allocation to gold in well-diversified portfolios makes sense."

 

Over in Asia on Wednesday, Hong Kong-based jewelry retailer Chow Tai Fook – one of China's largest gold chains, with 1,850 outlets – said today it expects to report strong growth in half-year sales, sending the company's stock 3% higher.

 

Shanghai gold contracts meantime reversed Tuesday's $3.50 discount to London prices, ending the day with a $1.50 per ounce premium to that global benchmark.

 

More widely in Asia however, "Physical demand in this part of the world has shown some signs of weakening recently," says a note from AnandRathi Commodities Ltd. in Mumbai.

 

Indian premiums on investment gold bars, over and above London benchmarks, today crashed to $70 per ounce "due to weak demand for gold on the domestic market" according to one Mumbai dealer quoted by the Business Standard.

 

But other sources continued to put the Mumbai premium at $115 per ounce, and "Still gold is not available," Reuters today quotes All India Gems & Jewellery Trade director Bachhraj Bamalwa.

 

Two days before Dhanteras marks the start of Diwali, the peak gold-buying festival in the world's No.1 consumer nation, Bamalwa put the premium to London benchmarks at $120-130 per ounce.

 

Thanks to 2013's good monsoon and harvest, "Farmers will have additional disposable income," explained the World Gold Council's P.R. Somasundaram, managing director India, earlier this month.

 

"As an Indian, the first thing comes in our mind after food is to accumulate some gold. Based on that fact, we estimate a robust quarter for gold this year."

 

2013's bumper harvest means wheat exports from India – already the world's No.2 supplier – will rise by one third to new record highs, says Singapore trader Agrocorp.

 

India's food ministry may this week cut the minimum price needed to make wheat exports, says Bloomberg, because the country's own state reserves are now double what it needs.

 

High-spending Indian jewelry buyers are switching however to platinum and diamond pieces, according to a survey from the Associated Chambers of Commerce & Industry.

 

More than three-quarters of the 350 jewelers surveyed by AssoCham said they have increased their platinum and diamond work, to meet consumer demand hurt by this year's record-high gold prices and now the shortage of gold forced by the Indian government's gold imports ban.

 

Adrian Ash

 

Adrian Ash is head of research at BullionVault, the secure, low-cost gold and silver market for private investors online, where you can fully allocated bullion already vaulted in your choice of London, New York, Singapore, Toronto or Zurich 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.


-- Posted Wednesday, 30 October 2013 | Digg This Article | Source: GoldSeek.com

comments powered by Disqus



 



Increase Text SizeDecrease Text SizeE-mail Link of Current PagePrinter Friendly PageReturn to GoldSeek.com

 news.goldseek.com >> Story

E-mail Page  | Print  | Disclaimer 


© 1995 - 2019



GoldSeek.com Supports Kiva.org

© GoldSeek.com, Gold Seek LLC

The content on this site is protected by U.S. and international copyright laws and is the property of GoldSeek.com and/or the providers of the content under license. By "content" we mean any information, mode of expression, or other materials and services found on GoldSeek.com. This includes editorials, news, our writings, graphics, and any and all other features found on the site. Please contact us for any further information.

Live GoldSeek Visitor Map | Disclaimer


Map

The views contained here may not represent the views of GoldSeek.com, Gold Seek LLC, its affiliates or advertisers. GoldSeek.com, Gold Seek LLC makes no representation, warranty or guarantee as to the accuracy or completeness of the information (including news, editorials, prices, statistics, analyses and the like) provided through its service. Any copying, reproduction and/or redistribution of any of the documents, data, content or materials contained on or within this website, without the express written consent of GoldSeek.com, Gold Seek LLC, is strictly prohibited. In no event shall GoldSeek.com, Gold Seek LLC or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.