{"id":42933,"date":"2013-10-10T08:49:59","date_gmt":"2013-10-10T12:49:59","guid":{"rendered":"http:\/\/countingpips.com\/forex-news\/?p=42933"},"modified":"2013-10-10T08:49:59","modified_gmt":"2013-10-10T12:49:59","slug":"stay-away-gold-says-morgan-stanley-india-doubles-silver-imports-china-keeps-buying","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex-news\/2013\/10\/10\/stay-away-gold-says-morgan-stanley-india-doubles-silver-imports-china-keeps-buying\/","title":{"rendered":"“Stay Away” from Gold Says Morgan Stanley as India Doubles Silver Imports, China Keeps Buying"},"content":{"rendered":"

London Gold Market Report<\/strong>
\nfrom Adrian Ash<\/strong>
\nBullionVault<\/strong><\/a>
\nThurs 10 Oct 08:25 EST<\/strong><\/p>\n

WHOLESALE PRICES\u00a0in Asia and London for physical gold slipped again Thursday morning, dipping back below $1300 per ounce as politicians in Washington mulled a short-term fix to avoid the $17 trillion debt ceiling triggering a government default in one week’s time.<\/p>\n

\u00a0Silver also eased back, trading below $22 per ounce, as world stock markets rose and major government bonds slipped, nudging 10-year US Treasury yields up to 2.70%.<\/p>\n

\u00a0“The inability [of\u00a0gold prices<\/a>] to retest recent highs of towards $1350 is a disappointment,” says technical analysis from Scotia Mocatta in New York.<\/p>\n

\u00a0“The one-month trend line (now at 1324) should limit any tentative rebound with 1317 being an immediate resistance,” reckons a chart comment from Societe Generale’s technical team.<\/p>\n

\u00a0Legal inflows of gold to India \u2013 the world’s former #1 consumer nation \u2013 have been so dented by the government’s anti-import rules that the country’s trade deficit shrank to a 30-month low in September, officials said yesterday.<\/p>\n

\u00a0“This is working out as the government intended,” the\u00a0Financial Express\u00a0quotes commerce secretary S.R.Rao after\u00a0India’s monthly trade deficit<\/a>\u00a0came in below $6.8 billion for the first time since April 2011.<\/p>\n

\u00a0Many Indian households have turned to silver says the Economic Times, with silver imports already doubling 2012’s full-year total over the Jan-Aug. period at 4,073 tonnes according to Thomson Reuters GFMS.<\/p>\n

\u00a0“The record high was\u00a05,048 tonnes in 2008<\/a>,” says the paper.<\/p>\n

\u00a0Households in central China’s Hubei province have meantime\u00a0grown their gold and silver jewelry demand 41% by value<\/a>\u00a0so far this year, the Xinhua agency reports.<\/p>\n

\u00a0The region’s private demand totalled the equivalent of $1.3 billion despite the sharply lower prices compared with the first 8 months of 2012.<\/p>\n

Here in London today, the Bank of England followed the US Fed, European Central Bank and Bank of Japan in voting for no change to current policy, holding interest rates at record lows and maintaining its \u00a3375 billion ($600bn) quantitative easing gilt-buying scheme.<\/p>\n

\u00a0The Pound bounced 0.4 cents after the news from a new 3-week low of $1.5910. That helped gold move above \u00a3815 per ounce.<\/p>\n

The last time any member of the UK’s Monetary Policy Committee\u00a0voted to raise interest rates<\/a>\u00a0was July 2011.<\/p>\n

\u00a0Consumer price inflation in the UK has since averaged 3.2% per year, topping the Bank of England’s 2.0% target in all 27 months.<\/p>\n

\u00a0“[US Fed] tapering has been postponed not canceled, and is expected by year end,” wrote Morgan Stanley analysts earlier this week, adding that Washington’s “political stalemate” over the debt ceiling will soon be resolved.<\/p>\n

\u00a0“Consequently, we see little immediate upside to the gold price either in the immediate future or next year.”<\/p>\n

\u00a0“We recommend staying away from gold,” said Morgan Stanley analyst Joel Crane overnight, repeating the investment bank’s 2014 average forecast of $1313 per ounce.<\/p>\n

\u00a0Should the debt ceiling be hit without a resolution one week today, says investment bank and bullion market-maker HSBC in a note, “It is possible that investors move into Treasuries as a safe haven [instead of gold] despite the possibility of US default.”<\/p>\n

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

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

Gold price chart, no delay | Buy gold online<\/strong><\/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 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

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

London Gold Market Report from Adrian Ash BullionVault Thurs 10 Oct 08:25 EST WHOLESALE PRICES\u00a0in Asia and London for physical gold slipped again Thursday morning, dipping back below $1300 per ounce as politicians in Washington mulled a short-term fix to avoid the $17 trillion debt ceiling triggering a government default in one week’s time. \u00a0Silver … <\/p>\n

Continue reading ““Stay Away” from Gold Says Morgan Stanley as India Doubles Silver Imports, China Keeps Buying”<\/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-42933","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts\/42933","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=42933"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts\/42933\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/media?parent=42933"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/categories?post=42933"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/tags?post=42933"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}