Close X Cookies are necessary for the proper functioning of 24hGold.com. By continuing your navigation on our website, you are accepting the use of cookies.
To learn more about cookies ...
EnglishFrench
Gold & Silver Prices in

Japan Gold Buying on TOCOM Again Supports

IMG Auteur
Published : January 24th, 2012
800 words - Reading time : 2 - 3 minutes
( 1 vote, 4/5 )
Print article
  Article Comments Comment this article Rating All Articles  
0
Send
0
comment
Our Newsletter...
Category : GoldWire

 

 

 

 

Gold’s London AM fix this morning was USD 1,669.00, GBP 1,072.69, and EUR 1,282.17 per ounce.


Yesterday's AM fix was USD 1,675.00, GBP 1,076.55, and EUR 1,294.94 per ounce.



Cross Currency Table - Bloomberg


Gold started out lower in Asia this morning as the euro faltered on news that European finance ministers rejected an offer by Greece's private creditors to help restructure its debts, but gains on Tokyo futures exchanges and an increase of demand in India cushioned the fall.


Investors are waiting on the outcome of a 2 day Federal Reserve meeting which ends on Wednesday.  Here they are following any signs that interest rates will remain low, as that could put pressure on the U.S. dollar.


The Tokyo Commodity Exchange, December, gold contracts climbed as high as 4,167 yen/gram, its biggest gain since mid-December. The gains initially propelled cash gold even though trading was slow during the Lunar New Year break.


Japan has been notably absent in the gold market in recent years. This may be changing as concerns about the Japanese economy and continuing debasement of the yen may be leading to Japanese diversification into gold. 


The scale of domestic savings in Japan remains enormous.


This would be a new and potentially extremely important source of demand in the gold market which could help contribute to much higher gold prices. 


The EU will freeze assets in Europe of the Iranian Central Bank as well as of 8 other entities and ban trade in gold, precious metals, diamonds and petrochemical products from Iran. The Iranian Foreign Ministry in a statement called the decision “aggressive” and said it will have “negative consequences” in Europe, including higher oil prices. The elevation of tension with Iran will continue to give gold a safe haven status for investors.


The World Gold Council published its yearly report on gold’s performance for 2011.  


They report, “During 2011, the US dollar price of gold rose by 9% ending the year at US$1,531/oz based on the London PM fix, marking the 11th consecutive year of price increases.1 During the first part of January 2012, the price of gold continued its upward trend above the US$1,600/oz level.”


Central bank gold purchases are expected to have hit another record in 2011, while demand for gold-backed exchange-traded products fell to less than half of that seen in 2010 last year, according to a report from the World Gold Council on Monday. 


The WGC, an industry-backed group, said in November it expected central banks to add some 450 tonnes of gold to their existing reserves in 2011, driven mainly by purchases from emerging economies that are seeking alternative investments to the U.S. dollar. 



Source: World Gold Council - Reuters graphic


"Central bank net-buying is poised to have a record year, and many of these purchases happened during Q3 and Q4. Additionally, investment activity remained healthy as market participants continued to access the market whether through bars and coins or other vehicles," the council said in a report. 


"In fact, gold-backed ETFs, collectively, added 75 tonnes of gold between September and December alone (out of 153 tonnes during the full year)," it said. 


Demand for gold-backed ETFs in 2010, when the reach of the euro zone debt crisis first became apparent with the bailouts of Greece and Ireland, reached 367.7 tonnes, according to WGC data. 


Rising equity market volatility and a desire among safety-conscious investors for cash in the run-up to the end of the year knocked the gold price back from September's record highs to December's closing levels around $1,564.00. Since then, gold has risen by nearly 8 percent to trade around $1,670 an ounce in London at 1455 GMT. 


"Our analysis shows that there have only been six previous instances in which the price of gold has fallen by more than 10 percent over the past decade and once the price has stabilised to a certain (typically new) level, it resumed its upward trajectory," the World Gold Council said, but did not include any price forecasts for 2012.


"Moreover, the price pullback experienced this last September was less pronounced than the pullback gold experienced during 2008. Even then, gold rose to finish the year with positive returns. Beyond the day-today market movements, the underlying gold price trajectory is based on its long-term supply and demand dynamics which remain robust," the council said.


For breaking news and commentary on financial markets and gold, follow us on Twitter.


NEWS


(Reuters)
Gold slips below 6-week high, focus on Fed meeting


(Reuters)
Gold inches up despite euro, eyes on Greece


(Bloomberg)
EU Hits Iran With Oil Ban, Asset Freeze


COMMENTARY
(Global Macro Monitory)
Is Gold About to Get a Monetary Blast (Off)?


(MoneyWeek)
Look what's happening to silver


(KingWorldNews)
Eveillard - We are Headed for Enormous Inflation & Higher Gold


Mark O’Byrne

Goldcore

 

 

Companies Mentionned : Robust |
<< Previous article
Rate :Average :4 (1 vote)
>> Next article
Mark O'Byrne is executive and research director of www.GoldCore.com which he founded in 2003. GoldCore have become one of the leading gold brokers in the world and have over 4,000 clients in over 40 countries and with over $200 million in assets under management and storage.We offer mass affluent, HNW, UHNW and institutional investors including family offices, gold, silver, platinum and palladium bullion in London, Zurich, Singapore, Hong Kong, Dubai and Perth.
WebsiteSubscribe to his services
Latest comment posted for this article
Be the first to comment
Add your comment
Top articles
Latest Comments
China is about to overthrow Lond...
28 Febneville
This a good slap in the face for the downright crooked bullion banks,traders that have been front running ie algorythm trading etc It had to ta...
A Salvo in the Battle for the Go...
27 Febovertheedge
I would argue that the devil is in the details, i.e. the definition of money. What the people of the US are using is currency. Currency bei...
A Salvo in the Battle for the Go...
26 FebFrankinca1
Sort of written for a PHD in economics, which gold believers (myself) are not often that well educated, have difficulty following. The definition o...
A Salvo in the Battle for the Go...
26 Feb07788525833
The dollar has a monopoly over all other types of money which is rammed down peoples throats by gun and drones , any one wanting to change this...
In Search of the Magic Wand: Car...
25 FebDoom
Yes, stay away from University of Phoenix, a school with a 9% graduation rate, that only gets students because it spends $200,000 a day on Google a...
Emails From Kiev: Free Speech Va...
25 Febovertheedge
"The problem is, the asshats associated with Poroshenko are even worse than he is." I'm assuming you mean the predators in the US White Ho...
The Bull Case For Gold This Year...
25 Febdepourcq1
You talked about all the wrong reasons that gold will rise or fall, their is only one that everyone should know. The US has a debt of 18.134 trilli...
The Bull Case For Gold This Year...
25 Febneville
The fact that you are very lowly rated might be one of two things .1.You have been playing this card to often (Bear Joker) 2,The other is that you ...
Most commented articlesFavoritesMore...
World PM Newsflow
ALL
GOLD
SILVER
PGM & DIAMONDS
OIL & GAS
OTHER METALS
Mining Company News
Marathon GoldMOZ.TO
Hits 3.02 g/t Au over 32.9 meters (TT) in Step-Out Drilling, Valentine Gold Camp, Newfoundlan
CA$ 0.30+9.09%Trend Power :
Corporate news
Chalice Diamond(Gems)COD.V
Sulliden Mining Capital to acquire Coastal Gold, an Advanced Gold Project in Newfoundland
CA$ 0.02+0.00%Trend Power :
Corporate news
Tinka Resources(Ag)TK.V
Announces AGM Results
CA$ 0.28+1.85%Trend Power :
Corporate news
Silver Standard(Ag-Au-Cu)SSO.TO
Early Glance: Silver companies
CA$ 6.59+0.30%Trend Power :
Corporate news
Pan American Silver(Ag-Au-Cu)PAAS
Early Glance: Silver companies
US$ 9.77+0.93%Trend Power :
Corporate news
Gold Fields(Cu-Ni-Mo)GFI
Early Glance: Gold companies
US$ 4.55-2.15%Trend Power :
Corporate news
Randgold Res.(Au)GOLD
- Total Voting Rights
US$ 78.87-0.40%Trend Power :
Corporate news
Continental Precious Min.(Ag-Au-Co)CZQ.TO
Engages Golder Associates for the Next Step in the Development of the Viken Project
CA$ 0.56+0.00%Trend Power :
Corporate news
Beaufield Res.(Ag-Au-Ni)BFD.V
Reports Annual General Meeting Results
CA$ 0.04+0.00%Trend Power :
Corporate news
Probe Mines(Ag-Au-Cu)PRB.V
Leading Independent Advisory Firms ISS and Glass Lewis Recommend Shareholders of Probe Mines
CA$ 4.86-1.62%Trend Power :
Corporate news
Comments closed
Subscribe to 24hGold’s daily market briefing
  • Prices and data of precious metals in 119 currencies and world mining companies
  • Daily analysis of the economy, markets and more
  • Free, daily and indispensable
Stay informed, subscribe now !
* Your email will never be shared.