Precious metals prices turned sharply higher due to heavy short covering on Friday, while Fed officials explain to investors that they misunderstood Chairman Bernanke’s remarks last week when he spoke of winding down the central bank’s massive quantitative easing (QE) program. Their message may be getting through. "There are some people covering shorts and some people taking losses as part of quarterly book-squaring to position for the next quarter," said Bill O'Neill, of LOGIC Advisors.
Meanwhile, Tarek El Mdaka, managing director of Kaloti Gold in Dubai, complains that there is not enough room aboard the airlines servicing Dubai, to meet the rapidly expanding demand for physical Gold after the price pullback this week. "I cannot find a place for transporting Gold on Emirates, on BA on Swiss Airlines this weekend," said Mr El Mdaka.
"I am shipping in one-and-a-half to two tons of Gold every day and it is going straight out." Mr El Mdaka does not sell to the Indian market, where the government has taken steps to limit the importation of Gold to reduce India's ballooning current account deficit (CAD). "The squeeze on physical Gold in India would have a big effect on Dubai. Luckily though, there is a lot of demand coming from the rest of the world to soak it up," said Mr El Mdaka.
There is presently a thriving market for physical Gold, according to former U.S. Mint Director and Morgan Gold’s chief strategist, Edmund Moy. During a CNBC “Squawk Box” interview on Friday, Mr. Moy remarked that Gold is tremendously oversold at the moment, and should be trading in the $1,600 to $1,700 an ounce range. Mr. Moy warned that "If the economy doesn't grow as fast as it should, the Fed is going to have a very difficult time unwinding this, without inflation becoming a real problem."
GOLD CURRENT TRADE
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BGT 1 Mini Gold at 1184 Stop 1170
on 28 June 2013
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YOU SHOULD NOT TAKE ANY MATERIAL posted on this BLOG AS RECOMMENDATIONS
TO BUY OR SELL GOLD OR ANY OTHER INVESTMENT VEHICLE LISTED.
TO BUY OR SELL GOLD OR ANY OTHER INVESTMENT VEHICLE LISTED.
Do your own due diligence.
No one knows tomorrow's price or circumstance.
I intend to portray my thoughts and ideas on the subject which may s be used as a tool for the reader.
I do not accept responsibility for being incorrect in my speculations on market trend.
I intend to portray my thoughts and ideas on the subject which may s be used as a tool for the reader.
I do not accept responsibility for being incorrect in my speculations on market trend.
King Regards
