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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.


Yellow Metal Edges Down, Investors Cautious Ahead of Fed

Yellow metal ticked lower on Wednesday on a shortage of physical buying and as investors waited to see if the US Federal Reserve sticks to its stimulus programme to spur the economy, which may lift the metal’s appeal as a hedge against inflation.

Doubts that central banks money printing to buy assets will stoke inflation have been a key driver in boosting precious metal, which rallied to an 11-month high previous October following the Fed announced its third round of aggressive economic stimulus.

The Fed’s policy making committee ends its conference later in the day with a statement that could reflect recent weak economic statistics. Investors also await Friday’s non-farm payrolls data which will signal the longer term predictions for the Fed’s monetary stimulus.

Edward Meir, a metals analyst at futures brokerage INTL FCStone said that accommodative policies are generally seen as supportive for bullion, however as the events of the last few weeks have demonstrated, gold does not always move in lockstep with simple expansion in money supply.

In its place, it seems to pick up steam either as a result of disorder in the financial markets or on the back of higher inflation readings, neither of which seem to be dominant at this particular time.

Gold dropped $1.89 per ounce to $1,474.71 by 0602 GMT, with the market torn between expectations that the Fed will keep its current policy and daily outflows from exchange traded funds, as investors cut their exposure.

US gold futures for June delivery stood at $1,474.20 per ounce added $2.10.

SPDR Gold Trust, the world’s biggest gold backed exchange traded fund, said its holdings dropped 0.19 percent to 1078.54 tonnes on Tuesday, their lowest since September 2009.

However gold has recovered more than half of its $225 loss incurred among April 12 and 16, boosted by strong physical demand, especially in top gold consumers China and India.

The longer term trend has been broken to the downside. This fact is important as in a downtrend the default move of a price is lower in the absence of convincing fundamentals. With fundamentals only neutral, we think certain risk still persists.

Credit Suisse in a report said that with investment flows negative however monetary policy supportive, we consider a neutral fundamental rating is the most appropriate one. In contrast to neutral fundamentals, technical indicators are clearly negative.

Singapore and Hong Kong were closed for a holiday. A rush in buying of gold bars following the recent plunge in prices has led to tight physical supply in Asia.

In other markets, the US dollar eased on Wednesday as investors warily awaited the result of the US Federal Reserve’s policy meeting, although expectations the European Central Bank will cut interest rates on Thursday capped the euro.


Precious Gold Increased More Than 1 pct, Heads for Best Week in 1-1/2 years

Yellow metal was headed for its greatest weekly addition in one and a half years following increasing more than 1 percent on Friday as a mid-month plunge in prices prompt bargain hunting and a surge in physical buying across Asia.

Gold still attracted buying even though the price had bounce back more than $100 since declining to a two year trough of about $1,321 previous week, with dealers reporting a shortage in gold coins, bars, nuggets and other products.

Ronald Leung, chief dealer at Lee Cheong gold Dealers in Hong Kong said that there’s panic buying. Everybody is buying gold. It still has a chance to go up to $1,500 and maybe a bit more. $1,525 is then the big barrier.

It was floating to be up more than 5 percent for the week. Gold posted its biggest daily climb since June last year on Thursday, however was still down 12 percent this year.

Precious metal was up $7.30 per ounce at $1,474.29 by 0408 GMT, off an initial high of $1,484.81 its strongest since April 15.

It’s not simple to go back down to $1,400 as long as the physical market is still firmed. The thing is that there are no immediate stocks.

US gold futures for June delivery climbed as high as $1,484.80 per ounce.

International Monetary Fund said on Wednesday, bullion was also supported by prediction of more central bank buying following Russia and Turkey raised their gold reserves in March, increasing their holdings ahead of a spectacular plunge in prices this month.

Premiums in Singapore stayed at their highest since October 2008 at $3 per ounce to the spot London prices on demand from Indonesia, India and Thailand.

Premiums for gold bars in Hong Kong climbed to at their highest level since October 2011 this week, at rise to $3 an ounce to spot London prices, partly as of an increase in buying interest from China, the world’s second largest consumer following India.

The Indonesians have told me they should begin selling at above $1,450, however they are actually buying some this morning, while the amount is not great. Local demand in Thailand is still good, he also see a pickup in demand for silver.


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.


Precious Metal Pares losses, However Equities Attract Investors

Precious metal pared early losses on Tuesday as speculators and jewellers looked for good deal, however the yellow metal was under downward pressure following US stocks gained ahead of an earnings season that is expected to illustrate modest growth.

Ronald Leung, chief dealer at Lee Cheong precious metal Dealers in Hong Kong said that he can observe the chart point does not look good. The stock markets and bond are more interesting than gold.

He think $1,585 is the crucial point. If it can break above this level, another bull run or small covering will push up the market to $1,600 per ounce.

Speculators have also slashed their bullion net longs as the yellow metal typically seen as a safe haven asset ignored worries on the Korean peninsula and investors moved their money to equities, looking for better returns, despite concerns regarding the health of the US economy.

Precious gold knock down to as low as $1,569.94 per ounce and stood at $1,576.00 by 0628 GMT, increased $ 2.91. It sink to a 10-month low previous week following an unprecedented monetary stimulus from the Bank of Japan and expect for another European Central Bank rate cut failed to stem heavy selling of bullion by funds.

Yellow metal rallied to an 11 month high in October last year following the US Federal Reserve announced its third round of aggressive economic stimulus, lifting fears the central bank’s money printing to buy assets will stoke inflation. Gold has slumped around 6 percent so far this year following having posted annual gains in the past 12 consecutive years.

George Soros, Institutional investor stated that gold had been destroyed as a safe haven asset, however added that he expects continued central bank buying to support prices.

US gold for June delivery was at $1,576.10 per ounce, climbed $3.60.

Gold future for June delivery added $3, or 0.2%, to $1,575.50 per ounce during Asian trade. The move erased Monday’s loss that left June precious metal at $1,572.50 on the Comex division of the New York Mercantile Exchange.


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.


Gold Rebound from 2 week Low as Stimulus Perceived Continuing

Federal Reserve incentives perceived to run through 2013 despite optimistic jobs statistics. Spot gold float in the range between $1,564 to $1,586.90 per ounce.

Precious metal climbed up during the Monday’s trading session, dragging off a two week low strike in the last session on  greater than expected US jobs statistics, as the Fed’s is likely to keep support the economy with monetary incentive through 2013, also providing support to the precious metal.

US employers added better than expected 236,000 workers to their payrolls in February and the jobless rate knock down to a four year low, however Wall Street wait for the Fed to continue its bond buying program.

The Fed’s loose monetary policy has helped to drive yellow metal to record highs in recent years, while investors have hunted a hedge against a growing inflation outlook due to money printing by the central bank.

Although symbols of upturn have emerged, fueling assumptions that the Fed would restrain its monetary stimulus sooner rather than later, sapping interest in precious metal.

Jeremy Friesen, commodity strategist at Societe Generale in Hong Kong said that the Yellow metal prices have built in the outlook that the US revival is on a good footing and by the end of the year we should watch that the Fed exiting the incentives, which should be bearish for precious metal.

A temporary bounce in bullion is possible, because concerns regarding the strength of the US revival and expectations of aggressive monetary easing from the Bank of Japan coming month strength spur buying.

Spot gold added 0.3 percent to $1,582.11 per ounce by 0634 GMT, recuperating from a two week low of $1,560.80 per ounce during the previous trading session.

US gold was also climbed up 0.3 percent at $1,581.30 per ounce.

Technical analysis recommended spot gold float in the range of $1,564.44 to $1,585.90 per ounce.

Holdings of SPDR Gold Trust, the world’s greatest precious metal’s backed exchange traded fund, knock down 3.311 tonnes to 1,239.739 tonnes by the end of previous week, the weakest since October 2011.


Precious Gold Holds Near Four Month High In Advance of Central Bank Meeting

Precious gold stable about four month highs during the Tuesday’s trading session, ahead of a key conference of central bankers at the weekend that could summarize the possible course of US monetary policy, as a strike at a major mine kept the platinum price about 3 month highs.

So far during August, precious metal has added 3.1 percent, placing it on course for its third successive monthly boost and the biggest percentage increase in one month since January, stimulate in huge part by a probability for the European Central Bank and the US Federal Reserve to take further steps to keep borrowing costs low.

Finance ministers from around the world and central bankers are planned to meet at Jackson Hole, Wyoming on August 31 and September 1 and investors expect speeches by Fed Chairman Ben Bernanke to indicate what actions the central bank might take and particularly whether it will buy bonds to lubricate the wheels of the financial system by suppressing interest rates. He further said that there is strong opposition from the Republican Party against further easing measures.

Spot gold was flat today at $1,663.11 per ounce by 0955 GMT, after hitting a 20 week’s high at $1,676.45 during the Monday’s trading session.

He further said if we get dovish remarks from Bernanke regarding the outlook for the leftovers of this year and on quantitative easing, $1,700 per ounce could be surpassed.

Peter Fung, head of dealing at Wing Fung bullion in Hong Kong said that if we get QE3, yellow metal could climb to $1,680 or $1,700, however for now, it is still uncertain what is going to occur, while hopes for QE are keeping bullion supported at the level of $1,650 per ounce.

Precious gold future for December delivery drop $13.70, or 0.8%, to trade at $1,661.90 per ounce on the Comex division of the New York Mercantile Exchange during Asian hours.

Silver for September delivery fall 1.5%, or 0.5%, to at $30.59 per ounce.

Platinum for October delivery plunged $19.70, or 1.3%, to $1,533.50 per ounce, though copper for September were retreated 3 cents, or 0.8%, to $3.45 a pound.