Gold eased on Friday as the dollar advanced on a better than expected non-farm payrolls report, pushing the price to invest in the yellow metal lower to $1,215.50 an ounce and the price to invest in Silver to $18.80 an ounce. The dip in precious metals prices has sparked increased demand for the physical metal which was described as “strong,” by Standard Bank Group Ltd. on Friday.
China continues to take advantage of Gold’s weakness as Gold imports from Hong Kong spiked 40 percent in May from a month earlier. “Demand was quite strong in May with people rushing to Gold shops because they thought prices had hit bottom,” said Bruce Liu, of ANZ Bank China Co., by phone from Shanghai. “Many jewelers internationally are likely to use the recent price falls as an opportunity to stock up,” said Mark O’Byrne, of GoldCore Ltd.
Meanwhile, comparing Gold markets in the east, to Gold markets in the west, can best be viewed as comparing apples to oranges. The recent slide in the price of Gold reveals a marked difference between the two. Western Gold markets are primarily “paper-based,” where only a small portion of the Gold being traded is actually physically delivered. Conversely, Gold markets in Asia are almost purely “physical” in nature, where nearly all trading results in physical delivery of the metal.
Premiums in Asia continue to increase and this signals soaring demand for physical Gold and it cannot be delivered fast enough (Morgan Gold offers physical delivery within 48 hours). In Egypt, the “military coup” that overthrew President Mursi has prompted Fitch Ratings to cut the nations credit rating to B-, which is six notches below investment grade, with a negative outlook. Egypt is now classified the same as Greece, Cyprus and Ecuador, according to data supplied by Bloomberg.
“There is a risk of a material deterioration of domestic political stability, with downside risks for economic outcomes and creditworthiness,” wrote Paul Gamble, of Fitch Ratings, in a report released today.
Gold eased on Friday as the dollar advanced on a better than expected non-farm payrolls report, pushing the price to invest in the yellow metal lower to $1,215.50 an ounce and the price to invest in Silver to $18.80 an ounce. The dip in precious metals prices has sparked increased demand for the physical metal which was described as “strong,” by Standard Bank Group Ltd. on Friday.
China continues to take advantage of Gold’s weakness as Gold imports from Hong Kong spiked 40 percent in May from a month earlier. “Demand was quite strong in May with people rushing to Gold shops because they thought prices had hit bottom,” said Bruce Liu, of ANZ Bank China Co., by phone from Shanghai. “Many jewelers internationally are likely to use the recent price falls as an opportunity to stock up,” said Mark O’Byrne, of GoldCore Ltd.
Meanwhile, comparing Gold markets in the east, to Gold markets in the west, can best be viewed as comparing apples to oranges. The recent slide in the price of Gold reveals a marked difference between the two. Western Gold markets are primarily “paper-based,” where only a small portion of the Gold being traded is actually physically delivered. Conversely, Gold markets in Asia are almost purely “physical” in nature, where nearly all trading results in physical delivery of the metal.
Premiums in Asia continue to increase and this signals soaring demand for physical Gold and it cannot be delivered fast enough (Morgan Gold offers physical delivery within 48 hours). In Egypt, the “military coup” that overthrew President Mursi has prompted Fitch Ratings to cut the nations credit rating to B-, which is six notches below investment grade, with a negative outlook. Egypt is now classified the same as Greece, Cyprus and Ecuador, according to data supplied by Bloomberg.
“There is a risk of a material deterioration of domestic political stability, with downside risks for economic outcomes and creditworthiness,” wrote Paul Gamble, of Fitch Ratings, in a report released today.
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GOLD CURRENT TRADE
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BGT 0.20 Standard Lot Gold at 1210.46 stop 1180.35
GOLD CURRENT TRADE
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BGT 0.20 Standard Lot Gold at 1210.46 stop 1180.35
on July 05/2013
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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
