{"id":45167,"date":"2013-12-09T10:15:52","date_gmt":"2013-12-09T15:15:52","guid":{"rendered":"http:\/\/countingpips.com\/forex-news\/?p=45167"},"modified":"2013-12-09T10:15:52","modified_gmt":"2013-12-09T15:15:52","slug":"etf-selling-continues-gold-futures-bearishness-marks-possible-turn-sentiment","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex-news\/2013\/12\/09\/etf-selling-continues-gold-futures-bearishness-marks-possible-turn-sentiment\/","title":{"rendered":"ETF Selling Continues in Gold, Futures Bearishness Marks “Possible Turn in Sentiment”"},"content":{"rendered":"

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

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

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

Mon 9 Dec 08:35 EST<\/strong><\/p>\n

The PRICE of wholesale gold held steady around $1230 per ounce in London trade Monday morning, ticking upwards as European shares slipped but Asian stock markets closed higher after strong data from China.<\/p>\n

\u00a0The Euro rose to 6-week highs vs. the Dollar on the FX market, capping gold priced in the single currency beneath \u20ac900 per ounce.<\/p>\n

\u00a0Silver rose 0.7% as commodities also gained, together with major government bond prices, reaching $19.65 per ounce.<\/p>\n

\u00a0“A lot of [gold] selling has now been done,” reckons Frances Hudson, co-manager of $271 billion at Standard Life Investments in Edinburgh, quoted by Bloomberg.<\/p>\n

\u00a0“So you could see a more stable base for the\u00a0gold price<\/a>\u00a0to build on.”<\/p>\n

\u00a0Last week the giant SPDR Gold Trust (ticker: GLD) shed another 0.9% of the metal held to back its exchange-traded shares, taking the total down to a near 5-year low beneath 836 tonnes.<\/p>\n

\u00a0Bearish betting by money managers, hedge funds and other speculators meantime rose in the week-to-last-Tuesday<\/a>\u00a0to 315 tonnes equivalent, well above the 250-tonne average of 2013 to date.<\/p>\n

\u00a0That compares with the previous 5-year average short position of 96 tonnes.<\/p>\n

\u00a0Overall, however, so-called speculative traders remain bullish on gold in aggregate, with their long position in US futures and options outweighing those short bets by 151 tonnes \u2013 the smallest “net long” since midsummer’s multi-year lows.<\/p>\n

\u00a0“This could be just the news that the gold bugs wanted to hear,” says the\u00a0Financial Times.<\/p>\n

\u00a0“More and more traders have lost faith…Yet the more that a consensus [for lower 2014 prices] builds, the closer to a possible turn in sentiment.”<\/p>\n

\u00a0“We could expect a short-term recovery in prices,” Reuters quotes Hong Kong economist Alexis Garatti at Haitong International Research.<\/p>\n

\u00a0“[Because] in our view, the mood of the market is exaggerated regarding the macroeconomic situation in the US.”<\/p>\n

\u00a0New data from Beijing meantime showed a surge in China’s exports for November, taking the overall trade surplus to a sudden 4-year high.<\/p>\n

\u00a0The world’s largest gold mining producer, China is now also the world’s largest end-buyer of gold, overtaking India in 2013, which will likely see a drop in gold imports to 900 tonnes according to comments Monday from market-development group the World Gold Council.<\/p>\n

\u00a0Gold prices on the Shanghai Gold Exchange rose Monday in brisk trade, even as the Yuan exchange rate was raised to new highs against the Dollar by the People’s Bank.<\/p>\n

\u00a0“There’s\u00a0so much room to grow<\/a>,” says World Gold Council investment director for the Far East, Roger Liu, quoted by the\u00a0Wall Street Journal.<\/p>\n

\u00a0Noting China’s current gold accumulation of 4.5 grams per head per year, and contrasting it with the global 24-gram average, “I expect more [ETF trust fund<\/a>] products along the lines of SPDR Trust to pop up in China,” Liu concludes.<\/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 Mon 9 Dec 08:35 EST The PRICE of wholesale gold held steady around $1230 per ounce in London trade Monday morning, ticking upwards as European shares slipped but Asian stock markets closed higher after strong data from China. \u00a0The Euro rose to 6-week highs vs. the Dollar … <\/p>\n

Continue reading “ETF Selling Continues in Gold, Futures Bearishness Marks “Possible Turn in Sentiment””<\/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-45167","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts\/45167","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=45167"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts\/45167\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/media?parent=45167"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/categories?post=45167"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/tags?post=45167"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}