{"id":42693,"date":"2013-10-03T09:35:50","date_gmt":"2013-10-03T13:35:50","guid":{"rendered":"http:\/\/countingpips.com\/forex-news\/?p=42693"},"modified":"2013-10-03T09:35:50","modified_gmt":"2013-10-03T13:35:50","slug":"volatility-rising-precious-us-shutdown-cancels-non-farm-friday","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex-news\/2013\/10\/03\/volatility-rising-precious-us-shutdown-cancels-non-farm-friday\/","title":{"rendered":"Volatility Rising in Precious as US Shutdown Cancels Non-Farm Friday"},"content":{"rendered":"

London Gold Market Report<\/strong>
\nfrom Adrian Ash<\/strong>
\nBullionVault<\/strong><\/a>
\nThurs 3 Oct 08:55 EST<\/strong><\/p>\n

PRECIOUS METALS fell back Thursday morning in London, with gold reversing $20 of yesterday’s near-$50 rally to trade 2.6% lower for the week so far.<\/p>\n

The price of silver dropped almost 50c from Wednesday’s peak, but held only 1.1% beneath last week’s finish at $21.57.<\/p>\n

World stock markets meantime ticked lower, as did major government bonds and commodity prices.<\/p>\n

\u00a0At this morning’s London Fix<\/a> \u2013 the global benchmark for valuation and shipping contracts \u2013 daily volatility in the gold price stood near last week’s 2-month highs at 25.7%.<\/p>\n

\u00a0Silver price volatility \u2013 a measure of the violence in its daily swings \u2013 last week hit its highest level since May at 43.9%, retreating to 39.2% by Thursday’s Fix in the London bullion market.<\/p>\n

\u00a0“It remains a mystery what caused gold to collapse [Tuesday lunchtime],” says a note from Japanese conglomerate Mitsui’s trading team.<\/p>\n

\u00a0“[But] many of the precious metals market participants were in Rome for the LBMA conference<\/a>,” they add.<\/p>\n

\u00a0Tuesday’s sudden $40 drop in gold \u2013 made inside 1 hour \u2013 happened right at the start of US trade. Wednesday’s sharp bounce in the Dollar price, which came after weak US jobs data, “[still failed] to regain the previous high,” says Victor Thianpiriya at ANZ Bank in Australia.<\/p>\n

\u00a0Wholesale prices for gold bullion<\/a> peaked yesterday at $1324 per ounce, beneath the $1331 level where Tuesday’s drop began.<\/p>\n

\u00a0“[That] suggests,” says ANZ, “the near-term downtrend remains intact and we remain wary of buying-the-dip while [wholesalers in] China, the natural bid, remains on holiday” for Golden Week.<\/p>\n

\u00a0“With [dealers in] China on holiday,” agrees Walter de Wet at Standard Bank, “there may not be the same strength in physical demand for gold if the price moves lower.<\/p>\n

\u00a0“The fact that precious metals have sold off quite aggressively while uncertainty about US fiscal policy lingers, is a bearish sign. However, we do believe that markets in general are looking through the fiscal impasse towards a solution.”<\/p>\n

\u00a0Official US jobs data in the monthly Non-Farm Payrolls Report will not be released as scheduled on Friday, the Bureau for Labor Studies says, “due to the suspension of Federal government services” thanks to the US debt limit wrangling in Congress.<\/p>\n

\u00a0Leading bank chiefs met with President Obama on Wednesday to plead for a resolution to the debt-ceiling row before the US begins to default on its debt repayments and obligations.<\/p>\n

\u00a0Yesterday’s private-sector ADP report said net hiring in the US economy totaled 166,000 in September, below analyst forecasts of 180,000 and with a sharp downwards revision to August’s first estimate.<\/p>\n

\u00a0Gold coin sales by the US Mint meantime recorded a 6-year low over the last two months, notes Barrons magazine.<\/p>\n

\u00a0From Monday this week, adds specialist site Mineweb, the State of Texas is levying no sales tax on gold<\/a>, silver or platinum coins \u2013 a first for US citizens, and eliminating a 6.25% on bullion coin and numismatic purchases made locally below $1,000 in value.<\/p>\n

\u00a0Gold trading in China<\/a> is also set for further deregulation, the People’s Bank said earlier this week, as it opens up new licenses for importing and exporting.<\/p>\n

\u00a0Looking at Chinese premiums, over and above the world’s London benchmark gold price, they “did not rise as might have been expected” in September, notes Australia’s Macquarie bank, “suggesting a non-price related weakening of Chinese demand.<\/p>\n

\u00a0“In other words, the Chinese [did] not want much gold” as the current Golden Week, typically a strong period for shoppers to buy gold<\/a> whether as jewelry or bullion, approached.<\/p>\n

\u00a0Across in India today \u2013 traditionally the world’s heaviest gold consumer market \u2013 “Some jewellers are placing orders as they have very thin inventory,” Reuters today quotes a private importer in Mumbai.<\/p>\n

\u00a0“They want supplies for Dussehra and Diwali,” he added, pointing to the Hindu festivals taking place later this month.<\/p>\n

\u00a0Prices for Indian gold consumers \u2013 hit by strict anti-import rules this year, aimed at reducing the country’s large trade deficit \u2013 eased on Thursday as the Rupee recovered 1% on the currency market.<\/p>\n

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

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

Gold price chart, no delay | Buy gold online<\/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 fully allocated bullion already vaulted in your choice of London, New York, Singapore, Toronto or Zurich 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

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

London Gold Market Report from Adrian Ash BullionVault Thurs 3 Oct 08:55 EST PRECIOUS METALS fell back Thursday morning in London, with gold reversing $20 of yesterday’s near-$50 rally to trade 2.6% lower for the week so far. The price of silver dropped almost 50c from Wednesday’s peak, but held only 1.1% beneath last week’s … <\/p>\n

Continue reading “Volatility Rising in Precious as US Shutdown Cancels Non-Farm Friday”<\/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-42693","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts\/42693","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=42693"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts\/42693\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/media?parent=42693"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/categories?post=42693"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/tags?post=42693"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}