{"id":40489,"date":"2013-07-31T09:47:05","date_gmt":"2013-07-31T13:47:05","guid":{"rendered":"http:\/\/countingpips.com\/forex-news\/?p=40489"},"modified":"2013-07-31T09:47:05","modified_gmt":"2013-07-31T13:47:05","slug":"gold-nears-10-monthly-gain-ahead-of-fed-decision-as-us-economy-surges-inflation-flatlines","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex-news\/2013\/07\/31\/gold-nears-10-monthly-gain-ahead-of-fed-decision-as-us-economy-surges-inflation-flatlines\/","title":{"rendered":"Gold Nears 10% Monthly Gain Ahead of Fed Decision as US Economy Surges, Inflation Flatlines"},"content":{"rendered":"

London Gold Market Report<\/strong>
\nfrom Adrian Ash<\/strong>
\nBullionVault<\/strong><\/span><\/a>
\nWednesday, 31 July 09:15 EST<\/strong><\/p>\n

The PRICE of wholesale gold fell back to $1320 per ounce Wednesday lunchtime in London as new data showed the US economy expanding faster-than-expected.<\/p>\n

\u00a0Second quarter GDP rose 1.7% in real terms from a year earlier, the Bureau of Economic Analysis said.<\/p>\n

\u00a0Inflation in consumer goods and services fell to 0.0%.<\/p>\n

\u00a0Falling almost $20 from an earlier 1-week high, the gold price<\/a> at $1320 dropped back to its crash low of mid-April, when prices tumbled $250 per ounce in 3 sessions.<\/p>\n

\u00a0The US Dollar had today already jumped half-a-cent against both the Euro and Sterling \u2013 and driven the Brazilian Real to 4-year lows \u2013 after strong jobs growth was reported by the private-sector ADP Payrolls report.<\/p>\n

\u00a0Official non-farm payrolls data for July are due this coming Friday.<\/p>\n

\u00a0Ten-year US Treasury yields jumped Wednesday to 3-week highs at 2.66% as bond prices fell.<\/p>\n

\u00a0Washington’s creditors have now lost money for three months in succession, lagging world stock markets by well over 5 percentage points<\/a> according to Bloomberg data.<\/p>\n

\u00a0“The influence real US interest rates have on gold has receded<\/a> over the last few decades as demand has shifted from West to East,” says a new research paper from market-development organization the World Gold Council today.<\/p>\n

\u00a0The relationship between the gold price and real US interest rates, adjusted for inflation, “is less clear when viewed in the context of other fundamental factors,” the report goes on, pointing to movements in the US Dollar, equities, and gold-price volatility.<\/p>\n

\u00a0Gold in Dollars has rallied nearly 10% in July after losing 25% to hit 3-year lows over the April-June quarter.<\/p>\n

\u00a0Versus Euros and Sterling, gold this month added more than 6%.<\/p>\n

\u00a0Silver meantime failed to break back above $20 per ounce Wednesday morning, holding 5.6% higher for the month of July on the London Fix<\/a> but then slipping back to $19.44 after the US data.<\/p>\n

\u00a0Over in India, “We hope to contain gold imports at a level well below last year’s total imports,” said finance minister P.Chidambaram on Wednesday.<\/p>\n

\u00a0Imposing yet more new restrictions on gold importers in July<\/a> \u2013 and already doubling Indian premiums over world benchmark gold prices \u2013 “[That will] save considerable amount of foreign exchange,” says Chidambaram, “which will have a positive impact on the current account deficit.”<\/p>\n

\u00a0Investment bank and bullion dealer Standard Bank of South Africa was meantime reported by a source to be close to selling its London commodity trading business to China’s giant ICBC bank.<\/p>\n

\u00a0Standard’s largest shareholder, ICBC was recently ousted by the US Wells Fargo as the world’s largest bank by stock-market value.<\/p>\n

\u00a0“Institutional investors in the Western Hemisphere [have] revealed strong negative feelings towards gold,” says a note from London market maker UBS.<\/p>\n

\u00a0“In contrast, retail investors in Asia \u2013 who account for the bulk of physical buying \u2013 have found good value in this year’s lower gold prices.”<\/p>\n

\u00a0US hedge-fund manageer David Einhorn was quoted Tuesday telling clients that his bullish view on gold “has not changed” and that Greenlight Capital continues to split its exposure equally between physical gold bullion and mining stocks.<\/p>\n

Adrian Ash<\/span><\/strong><\/a><\/p>\n

BullionVault<\/span><\/strong><\/a><\/p>\n

Gold price chart, no delay | Buy gold online<\/span><\/strong><\/a><\/p>\n

 <\/p>\n

Adrian Ash is head of research at BullionVault, the secure, low-cost gold and silver market for private investors online, where you can buy gold and silver in Zurich, Switzerland for just 0.5% commission.<\/p>\n

 <\/p>\n

(c) BullionVault 2013<\/p>\n

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 \u2013 and must be verified elsewhere \u2013 should you choose to act on it.<\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

London Gold Market Report from Adrian Ash BullionVault Wednesday, 31 July 09:15 EST The PRICE of wholesale gold fell back to $1320 per ounce Wednesday lunchtime in London as new data showed the US economy expanding faster-than-expected. \u00a0Second quarter GDP rose 1.7% in real terms from a year earlier, the Bureau of Economic Analysis said. … <\/p>\n

Continue reading “Gold Nears 10% Monthly Gain Ahead of Fed Decision as US Economy Surges, Inflation Flatlines”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-40489","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts\/40489","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/comments?post=40489"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts\/40489\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/media?parent=40489"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/categories?post=40489"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/tags?post=40489"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}