{"id":41612,"date":"2013-09-03T10:30:46","date_gmt":"2013-09-03T14:30:46","guid":{"rendered":"http:\/\/countingpips.com\/forex-news\/?p=41612"},"modified":"2013-09-03T10:30:46","modified_gmt":"2013-09-03T14:30:46","slug":"gold-touches-1400-high-syria-risks-meet-price-sensitive-asian-demand","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex-news\/2013\/09\/03\/gold-touches-1400-high-syria-risks-meet-price-sensitive-asian-demand\/","title":{"rendered":"Gold Touches $1400 as “High Syria Risks” Meet “Price-Sensitive” Asian Demand"},"content":{"rendered":"

London Gold Market Report<\/strong>
\nfrom Adrian Ash<\/strong>
\nBullionVault<\/strong><\/a>
\nTues 3 Sept 09:05 EST<\/strong><\/p>\n

WHOLESALE London prices for physical gold jumped $15 from a drop to $1384 per ounce Tuesday morning, gaining after the Interfax news agency in Russia \u2013 political ally of Syria’s President Assad \u2013 reported two “objects” being fired in the Mediterranean, towards the sea’s eastern coast.<\/p>\n

\u00a0The gold price then fell back only to rise and touch $1400 for the first time this week \u2013 2.5% below last Wednesday’s 3-month high \u2013 as Israel confirmed the launch<\/a>, saying it was done to test what Reuters calls a “US-funded” anti-missile system.<\/p>\n

\u00a0“As long as Syria stays quiet, I would rather sell rallies [in the gold price] at the moment,” says David Govett at brokers Marex.<\/p>\n

\u00a0But “we would also expect the metal to find support on pull backs,” says Walter de Wet at Standard Bank in London, “not only because Asian demand is likely to improve with gold below $1400, but also because geo-political risk around Syria remains high and oil prices elevated.<\/p>\n

\u00a0“This may also keep ETF liquidation at bay.”<\/p>\n

\u00a0Western investors sold exchange-traded gold funds heavily in the first half of 2013, leading gold ETFs to shed 650 tonnes<\/a> of bullion.<\/p>\n

\u00a0Holdings have since stabilized some 25% below end-2012’s record levels.<\/p>\n

\u00a0Over in Asia and the Middle East notes Commerzbank’s commodity research team, “Physical gold buyers who had hugely stepped up their purchases after the price collapsed in the spring, appear to be acting opportunistically and with great price sensitivity.<\/p>\n

\u00a0“In the wake of the latest price rise, it seems that they have withdrawn again,” says the German bank, pointing to August’s drop in US gold coin sales, plus today’s news of a 7-month low in Turkey’s gold bullion imports<\/a>.<\/p>\n

\u00a0Reviewing last week’s pop above $1430 per ounce as the UK and US debated immediate action against Syria’s Assad regime for an apparent chemical weapons attack on civilians, “If air strikes take place gold could well fall,” writes Jonathan Butler at Mitsubishi, “and if this takes place against a backdrop of QE tapering, the downwards correction could be sharp.”<\/p>\n

\u00a0The US Federal Reserve is widely expected to announce a reduction of its $85 billion-per-month QE program at its policy meeting in two weeks’ time.<\/p>\n

\u00a0Meantime, the gold price “should be well supported in the coming days,” says Butler. “But Friday\u2019s US payroll data may be negative for gold, however.”<\/p>\n

\u00a0Asian stock markets rose overnight, with Japan’s Nikkei adding 3% and the Shanghai index now regaining half of June’s 15% plunge after new data indicated lower new order for China’s manufacturers, but strong expecations for the future.<\/p>\n

\u00a0European stock markets held flat overall. Both the Euro and Sterling slipped against the Dollar.<\/p>\n

\u00a0Ten-year US Treasury yields rose to 2.84% as bond prices fell. Brent crude oil added 0.7% to rise above $115 per barrel.<\/p>\n

\u00a0Silver bullion meantime rose further above $24 per ounce, reaching 4-session highs some 5.7% above Monday morning’s early low.<\/p>\n

 <\/p>\n

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

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

Gold price chart, no delay | Buy gold online<\/span><\/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 or Singapore 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 Tues 3 Sept 09:05 EST WHOLESALE London prices for physical gold jumped $15 from a drop to $1384 per ounce Tuesday morning, gaining after the Interfax news agency in Russia \u2013 political ally of Syria’s President Assad \u2013 reported two “objects” being fired in the Mediterranean, towards … <\/p>\n

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