In the same category

Gold Prices Slip as Yen Jumps, GLD Shrinks, India Demand 'Crazy Small', China Imports Retreat

IMG Auteur
 
Published : July 26th, 2016
554 words - Reading time : 1 - 2 minutes
( 0 vote, 0/5 )
Print article
  Article Comments Comment this article Rating All Articles  
0
Send
0
comment
Our Newsletter...
Category : GoldWire
GOLD PRICES retreated from an overnight rally in London trade Tuesday, dropping back below $1320 and hitting 2-week lows vs the Yen as the Japanese currency soared on speculation that the Bank of Japan won't unleash extra stimulus in Friday's policy announcement.
Betting on US interest-rate futures again put the odds of a rise to 0.75% at Wednesday's Federal Reserve meeting at less than 1-in-20.
China's main stock index rose 1.2% but held below mid-July's new 2016 highs, while Japan's major equities lost 1.4% as the Japanese currency rose at its fastest pace since the UK's late-June Brexit referendum result, pushing the gold price over 3% below  last week's 4-month highs.
London's largest shares edged higher, but property shares fell again after UK real estate developer Capital & Counties Properties Plc (LON:CAPC) – already trading 40% below last summer's all-time high – fell 4% as it wrote off £200 million of a £1.6bn land holding in West London, blaming the Brexit result for lower expected sales and property prices.
"A fairly soft start to the week for gold," says the Australian trading desk of Swiss refiner and finance group MKS, "the metal coming under early selling pressure from both spec[ulative] and Asian physical [traders]."
"The first half of 2016 had seen a dramatic change in the rhythm and flows of the gold industry, even long before Brexit," says the latest quarterly update on demand and supply from specialist analysts Thomson Reuters GFMS.
Contrasting with investment demand for gold-backed ETF vehicles – which set a new half-yearly record in the first 6 months of 2016 – overall phyical demand "was down by more than a fifth year-on-year to a seven-year low, with Asian offtake being exceptionally weak," GFMS says.
24hGold - Gold Prices Slip as ...
A new industry event in India – formerly the world's No.1 consumer market – heard at the weekend that inflows have collapsed in 2016 so far thanks to a mix of high duty, near-record prices, and changing household spending.
"It's crazy how small the amounts moving are," the Platts news and data agency quotes one senior logistics manager at the the inaugural Bullion Federation conference in Agra.
"You find me someone [who's making money in India]," added a senior banker – "it's impossible."
Indian prices have, so far in 2016, averaged a discount to London of $22 per ounce according to Platts.
Gold imports to China through Hong Kong last month fell 40% or more according to new data released Tuesday morning, dropping to 69 tonnes.
That still shows a 69% annual increase for net imports year-to-date however.
"Jewelry consumption usually comes down when prices rise," Bloomberg quotes Jiang Shu, chief analyst at the Shandong Gold mining company's financial management division.
"As we can see, domestic demand isn't that strong. Jewelry holdings per capita are at the global average, so there's not much room to grow."
Chinese Yuan gold prices this month hit 3-year highs, before retreating as the Dollar price has dropped 4% from its peak at $1375 per ounce.
Monday saw the world's largest gold ETF, the SPDR Gold Trust (NYSEArca:GLD) shrink by 0.5% to 958 tonnes as shareholders liquidated positions, retreating further to its smallest size in July from the 2-year peaks hit mid-month.
You can receive your first gram of Gold free by opening an account with Bullion Vault : Click here.
Data and Statistics for these countries : China | Georgia | Hong Kong | India | Japan | All
Gold and Silver Prices for these countries : China | Georgia | Hong Kong | India | Japan | All
<< Previous article
Rate : Average note :0 (0 vote)
>> Next article
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.
Comments closed
Latest comment posted for this article
Be the first to comment
Add your comment
Top articles
World PM Newsflow
ALL
GOLD
SILVER
PGM & DIAMONDS
OIL & GAS
OTHER METALS
Take advantage of rising gold stocks
  • Subscribe to our weekly mining market briefing.
  • Receive our research reports on junior mining companies
    with the strongest potential
  • Free service, your email is safe
  • Limited offer, register now !
Go to website.