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May
18

Gold Drop Further in Longest Losing Streak in Four Years

Precious metal knock down on Friday for a seventh straight session, in its greatest losing streak since March 2009 because the dollar strengthened and investors cut exposure to the gold fearing further drops and choosing equities instead.

Yellow metal has lost almost 6 percent of its value in the six sessions through Thursday as stocks added on the back of strong US economic statistics and on fears the Federal Reserve could end its bullion friendly bond buying program.

Spot gold was losing 0.34 percent at $1,380.91 per ounce by 0538 GMT, having plunge to a four-week low of $1,369.29 on Thursday as renewed liquidation in precious metal’s ETFs and a recent drop below the $1,400 per ounce level spooked investors.

The gold is down 17 percent for the year and is on track for its worst weekly turn down in a month. Holdings in SPDR Gold Trust, the world’s major gold-backed exchange-traded fund, knock down to their lowest in four years.

Traders and dealers said Physical demand was also quiet on Friday as consumers in the largest gold buyers, China and India, wait for prices to stabilize or fall further.

Brian Lan, managing director of GoldSilver Central Pte Ltd in Singapore said many people are waiting on the sidelines as they are expecting another fall.

Demand in India is being hurt by central bank curbs on gold imports. Limits on bank batch have hit supply and triggered a sharp jump in premiums.

Indian gold futures chop down 1.5 percent on Thursday, extending losses for a second straight session to their lowest level in almost a month in line with global markets.  Lan said buying in India had plunge considerably from Monday, which saw the celebration of Akshaya Tritiya, considered an auspicious day to buy metal.

Premiums for gold bars in Hong Kong the main supply of gold for China, strike record highs this week on supply constraints.

Yellow metal demand knock down 13 percent to a three year low of 963 tonnes in the first quarter because rising jewelery demand and strong appetite for coins and bars failed to offset a sharp fall in investment, the World Gold Council says.

SPDR said holdings knock down 0.55 percent to 1041.42 tonnes on Thursday, the weakest in four years.

US gold future for June delivery was down 0.52 percent at $1,379.70 per ounce.

Apr
17

Precious Metal Added Because Buyers Chase Gold

Gold shrugged off weakening US gold futures to jump as much as 1 percent on Wednesday as buyers snapped up precious metal, coins and nuggets following prices touched their lowest in more than two years the session before.

Brian Lan, managing director of GoldSilver Central Pte Ltd in Singapore said people are essentially buying everything, gold bars and gold coins. People are hurrying to get a hand on it, we have a problem meeting the demand as we are unable to get new supply.

Yellow metal strike a session high of $1,381.80 per ounce and was standing at $1,370.84 by 0611 GMT, up $3.05. Gold fall to $1,321.35 on Tuesday, has dropped almost 18 percent so far this year following an unbroken 12-year string of gains.

However gold is not out of the woods yet because investors continued to shift holdings from exchange traded funds, even as the growth in physical buying led to a shortage of precious metal in Hong Kong and Singapore.

There’s a vast backlog, it’s the same for silver. So far sentiment seems to be improving even the price has more or less stabilized.

PDR Gold Trust, the world’s biggest gold backed ETF stated its holdings knock down 0.73 percent to 1,145.92 tonnes on Tuesday from 1,154.34 tonnes on Monday. Holdings of global gold ETFs are currently at their weakest since late 2011.

The purchases pushed up premiums for precious metal in Singapore to their highest in 18 months at $1.70 per ounce to spot London prices, however demand from top consumer India was surprisingly low despite the wedding season.

Gold future for June delivery gave up $14.80 or 1%, to trade at $1,372 per ounce during Asian trading hours.

On Tuesday, gold climbed $26.30 or 1.9%, on the Comex division of the New York Mercantile Exchange. The advance followed two consecutive sessions of turn down which stripped prices of more than $200 per ounce.

Apr
1

Yellow metal Climbed on China PMI Figures, Flirts with $1,600 per ounce

Precious metal firmed on Monday, as signs that China’s economic revival was attaining traction could enhanced demand for commodities, however prices could be capped by doubts regarding the debt crisis in Cyprus bank and the weakness of the euro versus the US dollar.

Yellow metal rallied to a 1-month high in March on concerns regarding fiscal stability in Europe following the European Union gave Cyprus an ultimatum to lift billions of euros it needs to settle a bailout deal or face a possible exit from the currency zone.

Strain in the Korean peninsula has yet to generate a rush in purchases from investors in Asia, however a full-scale conflict among the two Koreas could potentially increased yellow metal’s safe haven appeal in times of uncertainty.

Bullion hit an intraday high of $1,600.81 per ounce and traded at $1,597.76 by 0647 GMT, up $1.59. Gold ended the quarter down around 4 percent following stock markets rushed and the euro stayed weak as compare the dollar.

Brian Lan, managing director of GoldSilver Central Pte Ltd said that investors are in an uncertain market, usually a strong PMI data from China would tend to draw investors towards stocks and not support precious metal prices, however this time investor perceive a reverse. The North Korea stress is adding to the market doubt’s.

Physical buying by the retail investors during price plunged have been observed and this helped to support prices, which should increased to $1,600 per ounce. If thing goes well it look’s like a bullion could move on to a higher trading range of $1,620 per ounce.

The euro fall to approach a four month low on concerns regarding the spillover from Cyprus bailout conditions, as the Australian dollar was tripped up following statistics showed a slower than expected bounce back in Chinese factory activity in March.