All posts filed under: News

Hong Kong protests offer gold some support

Precious metals prices continued lower early on Monday in Europe but at a slower pace than in recent weeks, with pro-Democracy protests in Hong Kong providing a boost to safe-haven buying. Violent clashes between protestors and the police were reported in Hong Kong over the weekend and this morning, with tear gas and water cannons being used to disperse huge crowds blocking access to the financial district. Having traded as low as $1,215.30 at one point this morning, spot gold managed to make back some of the losses and was last a modest 60 cents above Friday’s closing level at $1,219.40/1,220.20 per ounce. The pattern was repeated in silver, which dipped as low as $17.47 before recovering to $17.54/17.59 per ounce, down eight cents. “The precious metals remain vulnerable but gold prices are moving sideways in choppy trading, which suggests both underlying buying and overhead selling,” FastMarkets analyst William Adams said. “The same is true for silver, while the PGMs are still looking for support, which we feel will be found soon given the fundamentals. …

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China gold demand picking up again?

One of the depressing factors with regard to the gold price so far this year has been the reported fall-off in Chinese gold demand, although by world standards it remains pretty healthy. But there are now signs that it is beginning to pick up again. While the full year total is still not expected to match the record 2013 level a recent pick-up in withdrawals from the Shanghai Gold Exchange (SGE) suggests the lower prices may be beginning to stimulate demand again. Koos Jansen, who is almost certainly the most consistent analyst and follower of Chinese gold demand data, has noted the pick-up and points out on www.bullionstar.com that the latest published weekly gold withdrawals from the SGE for the last two weeks in August have been 46 tonnes and 42 tonnes respectively. This is a significant jump from earlier levels and suggests the beginning of a healthy return to purchases as the final four months of the year approach. The SGE figures may be the only reliable indicator out there of the true picture …