Gold is under modest pressure

Gold price in 2013 Rising investment demand impacts.

Investment demand is set to drive gold in the first half of the current calendar year on loose monetary policies and burgeoning sovereign debt across global economies. Global consultancy firm Thomson Reuters GFMS in its latest Gold Survey 2012 forecast average gold price to rise to $1800 an oz for first half year ending June 2013.

According to Kitco.com, the forecast consists of 6.7% rise from the level of $1686.85 an oz average price recorded in the second half of 2012 and over 9% spurt from $1650.80 an oz the yellow metal had recorded in the comparable period last year.

Gold Price outlook for Jan-2013

Following positive news can hit the gold price to new heights.So watch out.

08:15 – Spain and Italy’s Manufacturing PMI

09:30 – GB Manufacturing PMI

15:00 – U.S. Manufacturing PMI

Day after Tomorrow
08:00 – KOF Economic Barometer
09:00 – Euro Area Monetary Development
13:15 – ADP estimate of U.S. non-farm payroll
13:30 – U.S. Jobless Claims Weekly Report
19:00 – Minutes of December’s FOMC Meeting


Here are several factors that may have pressured down of gold and silver prices during the month:

1. The recent U.S non-farm payroll report was well above 120k and tend to be negatively linked with gold and silver prices;
2. Several U.S reports were positive and showed progress for the economy: the Philly Fed indexhiked, retail sales also increased. These reports may have pulled up the USD;
3. The decline in the U.S jobless claims during most of December;
4. The slow deprecation of the Indian Rupee may have pulled down the demand for gold in India, among the leading importers of gold;
5. The improvement in the U.S as presented by the rise in housing starts and U.S GDP; this slow growth is likely to cut the odds of the FOMC intervening again in the near future;
6. The depreciation of several currencies including Aussie dollar during December;
7. The moderate decline in the U.S money base during recent months (see below for more)

Finally If the U.S stocks markets will rally this month (January effect), then they could pull down gold and silver. 

Gold Price rebounded from intraday lows.

After last-minute talks to end the U.S. "fiscal cliff" crisis showed signs of progress."I still believe at the end of the day the talks on the fiscal cliff should go through but of course not without some twists and turns ( by top 10 expert from Singapore).Could be the best time by Gold. as per technical analysis price cannot drop further.

Gold Exports by Hong Kong. Why exporting?

The gold price popped about five bucks at the open of trading in New York on Sunday night...and then didn't do much until the 8:20 a.m. Comex open the following morning. Then the price came under some selling pressure, with the low of the day coming around 12:15 p.m. Eastern time.

The tiny rally into the 1:30 Comex close, got sold off immediately in electronic trading...and the gold price closed down two bucks from Friday...at $1,728.80 spot. With volume as light as it was...around 70,000 contracts net...I wouldn't read a whole heck of a lot into yesterday's price action.

The Hong Kong government statistics show "Exports to China", "Re-Exports to China" and "Imports from China"."

"What the other analysts are doing is adding up the Exports and Re-Exportsbut not taking away the Imports to arrive at a Net Imports number."

"So Chinese Net Imports = Hong Kong Exports plus Hong Kong Re-Exportsless Chinese Imports"

"In other words China sends some of it's gold imports back to Hong Kong for further value adding before re-importing it again."

"This is a common occurrence and if you check the Hong Kong Government Statistics, you'll find lots of countries doing it."

who is manipulating the gold price ?are golf investors in risk ? we will wait and watch.

Obama is good for gold: Target $3,500 by 2013.

So now that Barack Obama is all set for a second term as President of the United States of America, gold is set for another rally. As I write this, gold is quoting at $1,723.2 per ounce (1 troy ounce equals 31.1 gm), up $40, or 2.4 percent, in a day.
And this rally is likely to continue, with some gold bulls talking of a price of $3,500 by 2013-end.

How so?

The analysis is simply an historical look at how much gold prices fluctuated since President Nixon took the U.S. off the gold standard in 1971.

 

Gold has done quite well under Republican presidents, rising over 121% during Republican presidencies over the last 40 years.

Gold gains on weaker dollar, euro-zone fears Metal gains more than 1% on week

Gold for June delivery GCM2 +0.51%  rose $4.30, or 0.3%, to $1,664.80 an ounce on the Comex division of the New York Mercantile Exchange.

That was gold’s best settlement since April 12, and one that took weekly gains to 1.4%. The contract rallied 1.1% Thursday, more than making up for losses earlier in the week.

Dollar weakness is positive for dollar-denominated commodities such as gold, because it makes them cheaper for holders of other currencies. 

Further Gold gets expensive for Indians as Rupees weakens.

 

South Korea holds gold bullion worth $2.17 billion

Asia's fourth largest economy, South Korea holds gold bullion worth $2.17 billion at the end of April, according to country's central bank.



SEOUL(BullionStreet): Asia's fourth largest economy, South Korea holds gold bullion worth $2.17 billion at the end of April, according to country's central bank.
In a statement, Bank of Korea (BOK) said country's foreign reserves reached a new high of $316.84 billion as of the end of April, up $890 million from a month earlier.
The April figure surpassed the previous record high for three straight months. The reserves breached the $300 billion mark for the first time in April last year.
The BOK attributed the April growth to an increase in investment profits and a growth in conversion value of non-dollar denominated assets such as the British pound and the Japanese yen.
The country's foreign reserves also consisted of $284.62 billion of securities, $23.83 billion of deposits, $3.55 billion of special drawing right (SDR) and $2.67 billion of International Monetary Fund (IMF) positions.
As of end-March, Korea had the seventh-largest foreign reserve in the world, according to the BOK. China, Japan and Russia ranked in the top three, with Taiwan, Brazil and Switzerland coming in ahead of Korea.

Gold may climb for a fifth day in London.

Gold may climb for a fifth day in London, the longest run of gains since January, on speculation lower borrowing costs and Europe's debt crisis will spur demand for a protection of wealth. The euro fell versus the dollar after a government report showed Spain's economy shrank last quarter amid the European debt crisis. The Reserve Bank of Australia will reduce interest rates on Tuesday, economists expect. Gold is down for a third month even after International Monetary Fund data showed Mexico, Russia and Turkey added about 44.8 tonne to reserves in March.

"Given the likely need for a further loosening of interest rates and the implications on real-interest rates and the interest from central banks, we expect gold to maintain its longer-term up-trend ," James Moore, an analyst at The-BullionDesk .com in London, said on Monday in a report. Bullion for immediate delivery was little changed at $1,662.23 an ounce by 11:15 am in London. Prices are down 0.4% this month. June-delivery futures were 0.1% lower at $1,662.50 on the Comex in New York. Gold at the morning "fixing," used by some mining companies to sell output, was little changed at $1,662.50 an ounce in London from $1,663.50 in the afternoon on April 27.

Gold is rising