Browsing all articles tagged with Singapore
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.

May
1

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.

Apr
26

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.

Apr
25

Gold Rise to 1 Week High, Central Bank Purchases Hold up

Bullion climbed to its highest in more than a week on Thursday, enhanced by prospects of more central bank buying following a recent steep sell off in the gold, as a firmer euro also underpinned prices.

Turkey and Russia raised their gold reserves in March, the International Monetary Fund stated on Wednesday raising their holdings ahead of the spectacular plunge in prices this month that shocked ardent yellow metal investors and bulls.

Central bank purchases and surging physical demand helped precious metal bounce from a two year trough about $1,321 per ounce hit previous week. However daily outflows from exchange-traded funds, reflecting sagging investor confidence capped gains.

Gold reversed early losses and stood at $1,445.56 per ounce by 0621 GMT, climbed $14.76. It strike a high of $1,447.66 per ounce earlier in the session its loftiest since April 15 the day it posted its largest ever daily slump in dollar terms.

Bullion is torn between an increase in demand for jewellery and coins, and investors in ETFs cutting exposure because they became gradually more convinced the US Federal Reserve will look to end its bullion friendly bond buying programme by the end of 2013 or beginning of 2014.

Joyce Liu, an investment analyst at Phillip Futures in Singapore said if the price breaks above $1,447-$1,450 levels, there will be more upward momentum. If it does not we may see a further dip in precious metal prices.

Premiums for gold bars soared to multi year highs in Asia following a spate of physical buying ran down supplies, with dealers in top consumer India expecting a surge in imports this month.

Holdings of the greatest gold backed ETF, New York’s SPDR Gold Trust slump 0.38 percent on Wednesday from Tuesday, their lowest since late 2009.

Dealer in Singapore said strong physical buying in China is overflowing into Hong Kong. I heard if you have gold bars now people will buy them at $2.50 to $3.00 premiums.

US gold for June delivery climbed more than 1 percent to as high as $1,447.50, its largest since April 15, however some dealers cautioned the current rebound in cash and gold futures was far from sustainable.

Gold futures rise on Thursday in electronic trade, on track for a second consecutive proceed supported by strengthening physical demand for the gold and downbeat US economic figures.

Apr
19

Gold jumps More Than 2 Percent, Still down for the Week

Yellow metal rallied more than 2 percent on Friday as its bounce back to  $1,400 per ounce spurred technical buying, however bullion was still heading for a fourth week of losses following a brutal sell-off shattered investors confidence.

Precious metal has been caught in a tug of war among physical buyers seeking bargains and wary investors cutting exposure to the gold on nagging worries about central bank sales and forecast of easing inflation.

Gold strike a session low about $1,385 before gaining strength to $1,414.30 by 0715 GMT, up $23.55. Dealers also noted physical buying, even though prices had added more than $100 since striking a 2-year trough earlier this week.

Physical dealer in Singapore, Prices have suddenly jumped however I guess it’s as gold has broken the $1,400-level again. Technically, people are just buying up again.

Physical buying from Thailand is not that strong. We are considering demand from Indonesia and local buyers and also modest from India.

Bullion investors are waiting for the 1930 GMT release of US CFTC statistics showing the newest trading by hedge fund and money managers for more cues.

The plunge in prices ignited a spate of buying in gold coins, bars and nuggets, sending premiums for precious metal bars to multi month highs in Asia. Buying also enhanced in top consumer India following a lackluster start.

This gives us some confidence that as panic selling passes, prices can rebound by $100 to $150 an ounce and trade in the $1,400 to $1,550 range over the next 3 to 6 months.

US gold futures for June delivery also staged a humble rally, standing at $1,414.30 per ounce climbed $21.80.

Selling on COMEX, blamed on the outflows on gold backed ETFs was accountable for a rout in the cash market. Spot gold recorded its largest ever daily drop in dollar terms on Monday, catching gold bulls, veteran and speculators investors by surprise.

Holdings of the SPDR Gold Trust, the world’s biggest gold backed ETF, are at their weakest in three years and there was also assumption hedge fund manager John Paulson a prominent gold bull might have liquidated his enormous gold stake.

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
15

Gold slump for 2nd day, Week China Data Fuels Recovery Uncertainty

Precious metal sank to its weakest in two years and because investors sold off commodities for a second day on Monday, concerned that central banks will pull the plug on stimulus and as disappointing Chinese statistics signaled a setback for the global economic recovery.

China’s economy grew 7.7 percent in the first quarter undershooting market prospect for an 8.0 percent expansion and annoying investors hoping the world’s No. 2 economy would rebound following posting its weakest growth in 13 years in 2012.

The Chinese statistics comes following soft US retail sales and consumer sentiment numbers lift worries regarding the economic recovery momentum in the world’s top economy, driving down commodities and equities on Friday.

Yellow metal fell more than 3 percent, following sliding 5.3 percent on Friday, as investors further cut their gold holdings on concern that central banks are bent on halting stimulus measures this year, cutting precious metal’s appeal as a hedge against inflation. Holdings on global gold exchange traded funds strike their lowest in more than a year.

Spot gold hit a session trough of $1,427.14 per ounce, its lowest since April 1, 2011. Spot gold climbed as high as $1,495.16 early in the session, earlier than a sell-off in US futures dragged it down.

Vishnu Varathan, market economist at Mizuho Corporate Bank in Singapore said that there are questions concerning the trend of bottoming in China’s economy and whether it can re-accelerate over 8 percent this year in a sustainable way.

China’s weaker than predicted GDP growth is backed by slower boost in industrial production and fixed-asset investment, despite strong lending growth in March as previous week’s data indicated.

Varathan said that demonstrate how China’s economy looks a bit uneven and risks in the property and shadow banking sectors might be mounting. What this means is that policymakers in China have less autonomy to spur the economy because they’ll be mindful of these risks.

Gold future for June delivery fall $90.20 or 6%, to $1,411.00 per ounce. Gold last week lost 4.7%.

Apr
12

Gold Heads for Third Weekly Fall, Firm Shares Reflect

Precious metal prices were stable on Friday however remained on track for their worst week since late February as strong equities lured investors seeking better returns, as outflows from exchange traded funds underlined the shaky attitude for gold.

CIMB regional economist Song Seng Wun said US equities have continued to defy gravity accumulation that the market had also shrugged off the threat of conflict with North Korea.

Usually, given growing tensions there will be flight to safety and bullion will benefit, however he suppose at this point, as they are mindful of the increased risk, nobody really think that the North Koreans will actually carry through on their threats.

Growing tensions on the Korean peninsula have done little to blend safe haven buying, while yellow metal could regain some of its luster if the newest US earnings season disappoints.

Yellow metal was stable at $1,560.84 per ounce by 0628 GMT, heading for a more than 1 percent turn down this week, its third such fall in a row.

Gold has fall about 7 percent so far this year, following increasing for the previous 12 years, lagging added of more than 11 percent in the S&P 500 index.

US government agency has stated North Korea has a nuclear weapon it can mount on a missile, accumulating an ominous dimension to threats of war by Pyongyang, however the assessment was quickly dismissed by several US officials and South Korea.

Dealer in Singapore, it’s a slim market and a two way business. Mean’s we are seeing both buying and selling today, buying is not extremely high from India. I would say there is not anything strange yet.

Gold future for June delivery fall almost $20 or 1.3%, to 3,561.50 per ounce, on track for a weekly drop of nearly 1%. US gold for June delivery was $1,560.90 per ounce, drop $4.00.

Apr
4

Gold About 9 Month Weakest, Investors Leave Risky Assets

Precious gold slumped for a third straight session on Thursday, holding near a nine month low strike during the last session, following a steep decline in equities and disappointing US private sector job description prompted investors to cash in gold to cover losses.

Markets are now eyeing the key monthly US nonfarm payrolls statement on Friday that will possibly confirm outlook that the Federal Reserve will keep its extremely accommodative monetary policy.

US companies hired at the lowest pace in five months in March as recent strong demand for construction jobs fade, as growth in the huge services sector slowed, signs that the economic upturn could be hitting a soft patch.

Joyce Liu, an investment analyst at Phillip Futures in Singapore said that the environment for bullion is pretty bearish now. He think if yellow metal tests the lower trend channel it has the potential to fall to $1,530 level.

As for North Korea he think investors are considering the threats more like a joke. They are not reacting because if North Korea is really going to launch a nuclear loaded missile. Funds are moving out of precious metal as there’s less need for safe haven.

The US state on Wednesday it would soon send a missile defense system to Guam to defend it from North Korea, because the US military adjusts to what Defense Secretary Chuck Hagel has called a real and clear threat from Pyongyang.

Yellow metal lost $3.66 per ounce to $1,553.69 by 0041 GMT following declining to $1,549.69 on Wednesday its lowest level since June. Gold a traditional safe haven that climbed more than a percent previous month, also failed to respond to growing geopolitical tensions in the Korean peninsula. US gold future for June delivery was stable at $1,554.00 per ounce.

Doubts that central banks’ money printing to buy assets will stoke inflation have been a key driver in enhanceing yellow metal, which rallied to an 11 month high in october previous year following the Fed announced its third round of aggressive economic stimulus. Bullion price is in our observation, in bubble territory.

Gold future for June delivery knock down $22.40 per ounce or 1.4%, to settle at $1,553.50 per ounce on the Comex division of the New York Mercantile Exchange.

Dec
29

Precious Gold Declines on US Economic Recovery, Budget Deal Bright

Precious gold plunged for the first time in four days as hopefulness that the US economy is recovering and lawmakers will reach a budget deal damped demand for the yellow metal as a protection against wealth. However Platinum and palladium advanced.

According to Huang Guobo, who oversees management of the $3.3 trillion foreign exchange reserves in China, the US may be a bright spot for the global economy in 2013. House Speaker John Boehner and President Barack Obama have not yet been able to reach a deal to prevent more than $600 billion in automatic spending cuts and tax increases from Jan. 1 which is known as the fiscal cliff.

Janet Kong, an analyst at China International Capital Corp. the nation’s largest investment bank, the US economy has been improving and the market is hopeful on resolution of the fiscal cliff.

Spot gold knock down as much as 0.4 percent to $1,651.62 per ounce and was at $1,655.73 at 3:25 p.m. in Singapore. It lost 2.3 percent previous week, the most since the June 22, following data demonstrate that consumer spending, industrial output and durable goods orders augmented in November.

Gold for February delivery fall 0.1 percent to $1,658.30 per ounce on the Comex in New York. Holdings in precious metal backed ETPs reached a record 2,632.516 metric tons on Dec. 20, and have extended 12 percent this year.

Spot gold is 5.9 percent higher during this year, set for a 12th annual addition, as investors sought the yellow metal to hedge against weakening currencies and the threat of inflation following central banks around the world enhanced stimulus to support economies.

ETP holdings added 274.9 metric tons this year and reached a record 2,632.5 tons on Dec. 20, equal to approximately a year of mine production. Nations from Iraq to Brazil to Russia are buying precious metal to add to reserves. Alternative traders are also bullish, with the 13 most widely held contracts conferring the right to buy at prices from $1,750 to $2,700 from January to November, Comex statistics show.