{"id":44754,"date":"2013-11-28T10:53:07","date_gmt":"2013-11-28T15:53:07","guid":{"rendered":"http:\/\/countingpips.com\/forex-news\/?p=44754"},"modified":"2013-11-28T10:53:07","modified_gmt":"2013-11-28T15:53:07","slug":"shanghai-gold-volume-premiums-rise-western-sentiment-weighs-heavier-thanksgiving","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex-news\/2013\/11\/28\/shanghai-gold-volume-premiums-rise-western-sentiment-weighs-heavier-thanksgiving\/","title":{"rendered":"Shanghai Gold Volume & Premiums Rise, But Western Sentiment Weighs Heavier on Thanksgiving"},"content":{"rendered":"

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

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

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

Thurs 28 Nov 09:45 EST<\/strong><\/p>\n

WHOLESALE gold rose in price in London trade Thursday, recovering last week’s finish of $1243 per ounce to stand some 0.6% above an overnight low.<\/p>\n

Asian and European stock markets also rose following Wall Street’s new record-high finish before today’s Thanksgiving holiday.<\/p>\n

\u00a0Commodities slipped further, however, while the British Pound rose to new 2013 highs after the Bank of England announced\u00a0an early end to “funding for lending”<\/a>\u00a0for UK mortgage providers.<\/p>\n

\u00a0Gold in Sterling dipped to fresh 3-year lows beneath \u00a3758.50 per ounce.<\/p>\n

\u00a0“The yellow metal retraced [Wednesday’s early gains] in the face of supportive factors,” says a note from refining and finance group MKS, “including the weaker US Dollar.<\/p>\n

\u00a0“That really portrays general sentiment for investors [towards buying gold] at the moment.”<\/p>\n

\u00a0Wednesday saw gold “[find] only short-term support” from\u00a0China’s latest gold import data<\/a>, says Germany’s Commerzbank in a note.<\/p>\n

\u00a0Now the world’s No.1 gold consumer market, Chinese gold buyers may get 1500 or perhaps 1800 tonnes of supply in 2013, according to a new analysis today.<\/p>\n

\u00a0Shanghai premiums on gold rose Thursday to $9 per ounce over London prices from $7 at the start of this week.<\/p>\n

\u00a0“Physical demand for gold is still improving,” says Standard Bank’s commodity team meantime. But despite much heavier trading on the Shanghai Gold Exchange today, volumes still “don’t seem big enough” to support prices, it adds.<\/p>\n

\u00a0Only if demand returns to June\/July levels, Standard Bank concludes, “it may start forcing short-covering in the futures market,” with bets against higher prices closed at a loss.<\/p>\n

\u00a0“A large short position,” agrees Australia’s ANZ Bank in a note, “remains among the speculative community.<\/p>\n

\u00a0“Overnight price action looks like long-side profit-taking from short-term players.”<\/p>\n

\u00a0Gold futures<\/a>\u00a0trading was sharply higher ahead of the Thanksgiving shutdown on Wednesday, with Reuters reporting volume 40% above the last month’s daily average.<\/p>\n

\u00a0“Turnover [was] lifted in part by the December-February rollover,” says INTL FCStone’s Edward Meir, pointing to traders wanting to maintain their positions from one quarterly contract to the next.<\/p>\n

\u00a0Nearer-term, “Precious metals markets are likely to be subdued due to the Thanksgiving holiday,” Bloomberg quotes Joni Teves at Swiss investment and bullion bank UBS.<\/p>\n

\u00a0“The next key event risk to watch out for is the [US] nonfarm payrolls print next Friday…the last employment report before the final FOMC meeting for the year.”<\/p>\n

\u00a0Looking at the odds of higher US interest rates ahead, “Why do you need something which yields nothing and is giving you a negative return?” the newswire also quotes John Stephenson at the $2.7 billion First Asset Investment Management Inc. in Toronto.<\/p>\n

\u00a0“When we do get tapering [of the US Fed’s quantitative easing]\u00a0the underlying message is the economy has improved<\/a>\u00a0well enough that we don’t need all this stimulus.”<\/p>\n

\u00a0Consumers in India meantime, the former world No.1, today saw gold quotes hold at $130 per ounce above the world’s benchmark of London settlement, says Reuters.<\/p>\n

\u00a0“Demand has picked up a little bit,” the newswire quotes Bachhraj Bamalwa of the All India Gems & Jewellery Trade Federation.<\/p>\n

\u00a0But thanks to the Indian governments ongoing import restrictions, aimed at reducing the pressure which gold demand puts on the country’s trade deficit, “Supplies are tight so premiums have jumped,” Bamalwa says.<\/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","protected":false},"excerpt":{"rendered":"

London Gold Market Report from Adrian Ash BullionVault Thurs 28 Nov 09:45 EST WHOLESALE gold rose in price in London trade Thursday, recovering last week’s finish of $1243 per ounce to stand some 0.6% above an overnight low. Asian and European stock markets also rose following Wall Street’s new record-high finish before today’s Thanksgiving holiday. … <\/p>\n

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