Chart usGOLD   Chart usSILVER  
 
Food for thought
Liberty means responsability. That is why most men dread it
G.B. Shaw  
Search for :
LATEST NEWS  :
MINING STOCKS  :
Subscribe
Write Us
Add to Google
Search on Ebay :
PRECIOUS METALS (US $)
Gold 1242.174.07
Silver 17.400.15
Platinum 1269.1014.90
Palladium 755.504.60
WORLD MARKETS
DOWJONES 16379261
NASDAQ 425841
NIKKEI 15111579
ASX 530747
CAC 40 3998-35
DAX 8764-86
HUI 187-7
XAU 77-2
CURRENCIES (€)
AUS $ 1.4571
CAN $ 1.4383
US $ 1.2775
GBP (£) 0.7926
Sw Fr 1.2060
YEN 136.6500
CURRENCIES ($)
AUS $ 1.1411
CAN $ 1.1257
Euro 0.7828
GBP (£) 0.6205
Sw Fr 0.9439
YEN 106.9620
RATIOS & INDEXES
Gold / Silver71.39
Gold / Oil15.13
Dowjones / Gold13.19
COMMODITIES
Copper 3.04-0.02
WTI Oil 82.110.49
Nat. Gas 3.74-0.03
Market Indices
Metal Prices
RSS
Precious Metals
Graph Generator
Statistics by Country
Statistics by Metals
Advertise on 24hGold
Projects on Google Earth
Precious Metals "Rangebound", India's Central Bank Proposes New Gold Restrictions
Published : May 03rd, 2013
706 words - Reading time : 1 - 2 minutes
( 2 votes, 5/5 ) Print article
 
    Comments    
Tweet

London Gold Market Report

WHOLESALE gold prices hovered around $1480 an ounce most of Friday morning, around 1% up on the week, as European stock markets edged higher and the Euro regained some ground against the Dollar ahead of the release of key US jobs data for April, including the latest nonfarm payrolls report.

Silver held its ground above $24 an ounce, also slightly up on the week, while other commodities also ticked higher. US Treasuries were little changed while UK Gilt prices fell.

"Precious metals remain rangebound," says Standard Bank commodities strategist Walter de Wet.

"The $1450 level continues to attract physical gold buying."

At its meeting on Thursday, the European Central Bank cut its main policy rate to an all-time low of 0.5%.

Asked at the subsequent press conference whether the ECB sees room to cut the rate it pays on commercial bank deposits with the central bank, currently at zero, ECB president Mario Draghi replied that his institution is "technically ready" for such a move.

"There are several unintended consequences that may stem from this measure," Darghi added.

"We will address and cope with these consequences if we decide to act. We will look at this with an open mind and we stand ready to act if needed."

"Draghi has shifted the ECB's stance on the potential floor for interest rates," says Marchel Alexandrovich, senior European economist at Jefferies International in London.

"A negative deposit rate is now a more distinct possibility."

The Euro fell nearly two cents against the Dollar immediately following Draghi's comments, though by Friday lunchtime had regained around half the drop.

Gold by contrast rose against the Dollar following Draghi's press conference.

"We suspect that this was because the [Euro's]weakness was triggered...by the fact that Draghi's comments, which while bearish on the Euro, were, curiously, a tacit endorsement for gold," says a note from INTL FCStone metals analyst Ed Meir.

"[Negative deposit rates]would mean that under such a scenario, gold would no longer return nothing (if its prices held steady), but would, in fact, compare favorably to risk-free bank deposits whose holders would not even get their full principle back. We may reading too much into Draghi's comments, but we see little else to explain Thursday's disconnect between the weaker Euro and higher gold prices."

The European Commission meantime cut its 2013 growth forecast for the 17-nation Eurozone Friday, predicting a contraction of 0.4%, down from a -0.3% contraction projected back in February. The economy of the Eurozone as a whole shrank by 0.6% during 2012, according to official GDP figures.

The Eurozone's unemployment rate rose to 12.1% last month, figures released earlier this week show, the highest rate since the single currency launched in 1999.

"In view of the protracted recession, we must do whatever it takes to overcome the unemployment crisis in Europe," the European Union's Economic and Monetary Affairs Commissioner Olli Rehn said Friday.

Over in India, traditionally the world's biggest gold buying nation, the central bank today proposed new restrictions on gold bullion imports as part of its annual monetary policy statement. The Reserve Bank of India proposes restrictions on banks importing bullion on a consignment basis, allowing them only to import gold to meet the needs of gold jewelry exporters.

"The banks import gold on consignment basis from a miner without investing anything and it remains the property of the miner until the bullion dealers take delivery," explains Bachhraj Bamalwa, director of the All India Gems & Jewellery Trade Federation.

"If they are not allowed to buy on consignment basis, imports will be restricted and chaos will prevail in the market."

The RBI says detailed guidelines will be published by the end of this month. Back in January India's authorities raised the import duty on gold to 6% in an effort to curb inflows that are blamed for exacerbating the country's current account deficit.

UBS meantime reports its physical flows to India "continue to indicate very strong demand...at least five times the average over the last 12 months."

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.


Data and Statistics for these countries : India | All
Gold and Silver Prices for these countries : India | All
Tweet
Rate :Average note :5 (2 votes)View Top rated
Previous article by
Bullion Vault
All articles by
Bullion Vault
Next article by
Bullion Vault
Receive by mail the latest articles by this author  
Latest comment posted for this article
Be the first to comment
Add your comment
TOP ARTICLES
Editor's picks
RSS feed24hGold Mobile
Gold Data CenterGold & Silver Converter
Gold coins on eBaySilver coins on eBay
Technical AnalysisFundamental Analysis

Bullion Vault

The London Gold Market Report is the daily market review from BullionVault, the world's largest physical gold and silver market for private investors. A full member of professional trade body the London Bullion Market Association, BullionVault publishes the LGMR every day that the market is open, bringing you insider comment and analysis from the very center of the world's $240 billion-a-day physical gold trade, and putting the latest gold price action into its wider financial and economic context. 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.
Bullion Vault ArchiveWebsite
Most recent articles by Bullion Vault
12/20/2013
12/18/2013
12/17/2013
12/16/2013
12/13/2013
All Articles
Comment this article
You must be logged in to comment an article8000 characters max.
 
Sign in
User : Password : Login
Sign In Forgot password?
 
Receive 24hGold's Daily Market Briefing in your inbox. Go here to subscribe or unsubscribe.
Disclaimer