{"id":44494,"date":"2013-11-22T09:57:15","date_gmt":"2013-11-22T14:57:15","guid":{"rendered":"http:\/\/countingpips.com\/forex-news\/?p=44494"},"modified":"2013-11-22T09:57:15","modified_gmt":"2013-11-22T14:57:15","slug":"equity-boom-sees-gold-25-vs-sterling-2013-central-banks-buying","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex-news\/2013\/11\/22\/equity-boom-sees-gold-25-vs-sterling-2013-central-banks-buying\/","title":{"rendered":"Equity Boom Sees Gold Down 25% vs. Sterling in 2013, Central Banks Buying"},"content":{"rendered":"

London Gold Market Report<\/strong><\/p>\n

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

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

Fri 22 Nov 08:45 EST<\/strong><\/p>\n

FOUR-MONTH lows in gold continued vs. the Dollar and Euro in London on Friday, with the metal heading for its lowest weekly finish in British Pounds since early August 2010.<\/p>\n

\u00a0World stock markets rose meantime, extending 2013’s 30% gain on the MSCI index, as did commodities and government bond prices, after the Dow Jones index in New York ended last night above 16,000 for the first time.<\/p>\n

\u00a0“People are finding it hard to find a reason to own gold,” the\u00a0Wall Street Journal\u00a0quotes one analyst today.<\/p>\n

\u00a0“Precious metals markets,” says David Govett at brokers Marex Spectron, also speaking to the\u00a0WSJ, “are\u00a0out of favor with investors<\/a>\u00a0and set to stay that way,”<\/p>\n

\u00a0Silver tracked gold’s Dollar-price drop of 3.6% to $1245 this week, failing to hold a rally above $20 per ounce lunchtime Friday.<\/p>\n

\u00a0Averaging 14% annual gains since 1999, the Sterling gold price<\/a> has so far dropped 25% in 2013, dipping below \u00a3770 per ounce overnight.<\/p>\n

\u00a0New data from the International Monetary Fund meantime showed central banks as a group adding slightly to their gold reserves in October.<\/p>\n

\u00a0Turkey led the rise, with nearly 13 tonnes being added \u2013 most likely by commercial banks putting more client property on deposit, as part of their liquidity reserves \u2013 to the country’s previous holdings of 491.<\/p>\n

\u00a0Germany sold 3.4 tonnes from its 3,391 reserves, again for production of gold coin.<\/p>\n

\u00a0The United States added 33 kilograms, the largest change to its world-leading 8,133-tonne hoard since the 840kg added in the third quarter of 2012.<\/p>\n

\u00a0“Our bullish view has proven incorrect,” said Bank of America-Merrill Lynch technical strategist MacNeil Curry on Thursday, pointing to the drop through $1251 per ounce.<\/p>\n

\u00a0Whilst $1270 will now “limit the topside,” his chart analysis says, “bears need a break [below] $1155 and $1087 to confirm a long-term top and secular turn in trend from bullish to bearish.”<\/p>\n

\u00a0Targeting averaging prices of $1150 per ounce across the second quarter of 2014, TD Securities’ analyst Mike Dragosits says “Spec positioning” in the futures market “could also precipitate an overshoot, with gold hitting sub-$1000\/oz on an intraday basis.”<\/p>\n

\u00a0Speculative traders in the US gold futures market have this year built the biggest “short” bet against prices since the bear-market lows of 1999.<\/p>\n

\u00a0“We will continue to watch Comex specs activity as a major contributing driver for this move,” says TD’s note.<\/p>\n

\u00a0Gold prices in India, formerly the world’s No.1 consumer but now overtaken by China, pushed higher above international benchmarks Friday, reports Reuters.<\/p>\n

\u00a0“Premiums are still on the higher side at about $120 per ounce,” the newswire quotes All India Gems & Jewellery Federation chairman Haresh Soni.<\/p>\n

\u00a0Thanks to the Indian government’s strict anti-gold import rules, aimed at cutting the country’s large trade deficit, “Still there is scarcity of gold,” Soni adds. “This problem will continue for another 5-6 months till the elections.”<\/p>\n

\u00a0Physical gold will meantime be traded between China’s biggest banks in\u00a0formal “swaps” contracts starting Monday<\/a>, the National Interbank Funding Center said today.<\/p>\n

\u00a0Used by large gold owners and traders to raise cash, and with a small rate of interest typically offered to borrowers as an incentive, gold swaps hit the headlines in 2010 after European central banks were identified as the source of 349 tonnes swapped with the Bank for International Settlements during the 1st half of the year, raising cash amid the growing Eurozone debt crisis.<\/p>\n

\u00a0Announcing a raft of reforms this week after the 3rd plenum of the current politburo, policymakers in Beijing have put\u00a0China’s gold-market liberalization<\/a>\u00a0at the heart of financial deregulation.<\/p>\n

\u00a0US derivatives exchange the CME yesterday cut the margin payments needed to trade gold and silver futures contracts, halving the sharp hike made in June as prices ended their worst quarterly drop in three decades.<\/p>\n

 <\/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

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 <\/p>\n

 <\/p>\n

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

London Gold Market Report from Adrian Ash BullionVault Fri 22 Nov 08:45 EST FOUR-MONTH lows in gold continued vs. the Dollar and Euro in London on Friday, with the metal heading for its lowest weekly finish in British Pounds since early August 2010. \u00a0World stock markets rose meantime, extending 2013’s 30% gain on the MSCI … <\/p>\n

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