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Updated 09:16 13/04/21

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October Gold News 2014

The gold price has fallen to a 4 year low in dollars and a 2014 low in GBP following the Fed's announcement to exit QE3 and better than expected US GDP data. Gold has fallen £33 per ounce this past week.

The gold price extended losses overnight, falling sharply in a surprising reaction to the Bank of Japan's (BOJ) decision to extend their stimulus program. In this unprecedented move the BOJ will intervene directly into the stock market by purchasing shares and property funds. The BOJ will also restructure Japan's government debt and the government pension ...

31 Oct 2014, 12:52 p.m.
Adam Pike

It appears you have to wait for Central Bankers to retire before they will give you their real views on the economy and gold. Alan Greenspan, Fed Chairman from 1987 to 2006 did just that on Saturday at the New Orleans Investment Conference.

Mr Greenspan said “gold is a good place to put money these days given its value as a currency outside of the policies conducted by governments.”

When asked for his opinions on the gold price, Greenspan responded by saying the gold price will be measurably higher in 5 years’ time.

Greenspan went onto say, “I don’t think it is possible ...

30 Oct 2014, 10:18 a.m.
Duncan Richardson

The gold price has fallen to a three week low after the Federal Reserve announced the end of its latest quantitative easing program. In total the Federal Reserve has expanded its balance sheet by $3.7 trillion since the start of the 2008 economic crisis.

Following the news the gold price fell to a low off $1,203.50 per ounce and the dollar strengthened to a 3 and a half week high against a basket of major currencies. The Fed dismissed deflationary pressures and low growth in the Eurozone as factors that may cause them to miss future growth and employment targets.

The world’s ...

30 Oct 2014, 10:17 a.m.
Adam Pike

The Swiss will head to the polls on the 30th of November to vote in a referendum on gold. As the referendum gains momentum the Swiss Central Bank (SNB) is coming under increased scrutiny over their management of the countries gold.

The (SNB) on average have sold one tonne of gold every a day for the last five years.

They have been criticized for selling 1,550 tonnes of gold too cheaply. The SNB reportedly sold the majority of the gold reserves between $300 and $500 per ounce achieving only $620 million dollars in sales.

Gold as a percentage of Switzerland’s foreign reserves currently ...

29 Oct 2014, 11:12 a.m.
Adam Pike

The Russian Central Bank increased their official gold reserves for the six consecutive month. According to The International Monetary Fund (IMF) Russia added a further 37 tonnes of gold to their reserves in September. Russia now has 1,149 tonnes of gold making their holding the 6th largest in the world.

The former Soviet states of Azerbaijan and Kazakhstan also increased their holdings in September. Kazakhstan increased their holdings by 2.1 tonnes to 184 tonnes, while Azerbaijan added 4 tonnes, taking their overall gold holdings to 37 tonnes.

Under Gordon Brown the UK government sold a high proportion of their gold reserves in ...

29 Oct 2014, 11:12 a.m.
Peter Walden

Despite the silver price retreating 23% over the last 12 months many commentators expect the silver price to rebound and outperform gold.

Many point to the gold-silver ratio, which expresses the total amount of silver ounces required to buy one ounce of gold. When the ratio is high many believe silver is undervalued when compared to gold. Throughout 2014 the ratio has continued to widen and currently stands at 72:1. The ratio has averaged 43:1 over the last century according to historic data. For this reason many silver bulls suggest when the market finally turns silver will significantly outperform gold.

Silver is ...

28 Oct 2014, 10:38 a.m.
Duncan Richardson

Gold imports from Hong Kong into mainland China surged to a five month high in September as retailors stocked up prior to China’s holiday season. Total net imports reached 61.7 metric tonnes the highest since April 2014.

The increased demand was driven by 11% increase in jewellery sales, according to the National Bureau of Statistics. Increased jewellery sales combined with a lower gold price is a strong indication of consumer demand according to local analyst Lui Xu.

Gold is currently trading at £762.25 per ounce, silver £10.71 per ounce, platinum £781.11 per ounce and palladium £489.88 per ounce.

28 Oct 2014, 10:38 a.m.
Adam Pike

It could be a volatile week for precious metals with the Federal Reserve expected to stop QE3 on Wednesday

The Federal Reserve will announce on Wednesday whether they are to stop QE3. By injecting newly created currency units into the economy via the purchase of U.S. debt, stock markets have soared and bond values have risen to historic highs. If the Fed does exit QE many expect the gold, silver and stock markets to fall.

With the fear of deflation taking hold across Europe the Fed may decide it’s the wrong time to finally eliminate QE3, which is turn will be positive ...

27 Oct 2014, 11:39 a.m.
Duncan Richardson

Silver bought for investment purposes is expected to rise by 1 billion ounces over the next decade as investors turn to silver to preserve wealth, according to the latest report published by the Silver Institute.

The non-profit organisation confirmed investment demand is the main driver behind the silver price. The silver market is the second largest precious market in terms of value. The report forecasts that investment demand will rise by a further 1 billion ounces, on top of the 860,000 ounces purchased since 2006.

The Silver Institute believes that over 2.3 billion ounces of silver are held in the form of ...

27 Oct 2014, 11:39 a.m.
Peter Walden

Rating agency Standard & Poor’s believes it’s too late for a German stimulus package to save the Eurozone economy.

The Eurozone economy is suffering from a cocktail of low inflation, low growth and high levels of unemployment. In such an environment it’s difficult to know how governments can stop the ever increasing debt burden.

The European Central Bank (ECB) is using all the ammunition it has available stop the Eurozone falling into a deflationary spiral despite a number of stimulus packages, the ECB has failed to spark any expectation that inflation is set to increase.

With the outlook remaining bleak many are calling ...

24 Oct 2014, 10:45 a.m.
Duncan Richardson

Despite the silver breaking through $17 and touching a multiyear low the U.S. Mint has sold over 4.1 million Silver American Eagles in September. The trend has continued into October with the U.S. Mint confirming they have sold over 2 million silver eagles in the first week of October.

Year to date the U.S. Mint has sold 36,066,000 silver eagles and if the trend continues sales could top the 2013 high of 42.7 million ounces.

The American silver eagle is an extremely popular coin and is favoured by retail investors in both America and around the world. The Canadian Royal Mint are ...

24 Oct 2014, 10:45 a.m.
Adam Pike

According to official data Chinese wholesale gold demand reached a staggering 2,199 tonnes in 2013. The data was documented in the China Gold Association’s 2014 gold year book.

Bullion imports attributed to 1507 tonnes, domestic mine production contributed 428 tonnes and 17 tonnes was imported from overseas mines. Scrap gold data was omitted form the report but analysts estimate this to be in the region of 250 tonnes.

1,500 tonnes of imported bullion came from Switzerland in the form of 1 kilogram bars.

China’s gold data is not a secret but they have tried to hide the data as much as possible. Many ...

23 Oct 2014, 10:25 a.m.
Duncan Richardson

One of the largest gold nuggets found in modern times is going on sale in San Francisco. The 2.7 kilogram gold nugget was found in the historic gold region in the Butte Mountains. The nugget will be sold this week during the San Francisco Fall Antiques Show and is expected to fetch $350,000. Large gold nuggets can sell for up three times the melt value.

Many giant gold nuggets were found in the region during the 19th century Californian gold rush, including a 24.49 kilogram nugget in 1859. Local experts believe this recent find is the largest in the region for ...

23 Oct 2014, 10:24 a.m.
Adam Pike

The Swiss will head to the polls of the 30th November to vote in a referendum on gold. The “Save Our Swiss Gold” initiative will ask the Swiss population to vote on the following three measures.

To repatriate all Swiss gold vaulted in London and Canada.

Stop all future sales of Swiss Central Bank gold.

Mandate the Central Bank of Switzerland to hold 20% of their total reserves in gold bullion.

Results from the first opinion poll confirmed that 45% of Swiss intend to vote “Yes” with 39% indicating they will vote “No”. The result is being seen as a good barometer of voter ...

22 Oct 2014, 10:24 a.m.
Duncan Richardson

The gold price is trading near a six week high as traders anticipate increased physical buying a head of the Diwali and the Indian wedding season.

Analysts are forecasting physical demand in India will remain strong a head of this week’s Diwali celebrations. Diwali is the festival of light and is an auspicious time for Indians to buy gold. Research group CMP estimates that 20% of all gold bought in India are purchased prior or during Diwali.

Gold imports into India have surged to 95 tonnes in September up from 20 tonnes in September 2013.

Gold is currently trading at £778.47 per ounce, ...

22 Oct 2014, 10:20 a.m.
Adam Pike

In an attempt to revive a failing economy the European Central Bank (ECB) has begun purchasing French denominated assets. The ECB has named the stimulus measure the Covered Bond Purchase Programme (CBPP).

To purchase the bonds the ECB will expand its balance sheet and inject newly created currency units into the economy in a process similar to quantitative easing. The ECB hope the measure will boost demand and stimulate the economy.

The CBPP was announced last week by ECB President, Mario Draghi, after inflation data indicated the 18 member Eurozone is heading into a deflationary spiral. Inflation in the Eurozone fell to ...

21 Oct 2014, 10:36 a.m.
Peter Walden

The gold price held onto recent gains during Asian trading despite concerns the global economy is slowing. Chinese GDP figures disappointed the markets after they announced their economy grew at its slowest rate since the 2008 economic crisis.

The markets will now shift their attention towards Wednesdays U.S. inflation data release and Thursday’s European manufacturing report.

The world’s largest gold backed exchange traded fund, The SPDR Gold Trust, which is often used as a barometer of investor sentiment, confirmed its holdings fell yesterday by 1.18% to 751.97 tonnes on Monday.

Physical buying in India is expected to pick up this week as many ...

21 Oct 2014, 10:34 a.m.
Adam Pike

The Indian government may re-introduce the 80:20 gold import rule to. Under the 80-20 rule institutions importing gold had to export 20% of the gold before any further imports could be made. The rule was imposed to cut the country’s current account deficit and defend the Indian Rupee.

Following the relaxation of the rule India’s trade deficit has worsened. In September the trade deficit rose to $14 billion as gold imports surged 450% as importers took advantage of the relaxed rules and lower gold prices.

The import taxes have been extremely unpopular as gold is central to Indian culture, with Indians buying ...

20 Oct 2014, 10:50 a.m.
Peter Walden

On Friday the London Bullion Market Association (LBMA) announced they have shortlisted five companies to administer the new electronic gold fix.

From an initial list of eight companies Autilla Ltd, CME Group Inc., ICAP Plc, EBS Service Co. Ltd and the London Metal Exchange will battle it out to run the new Gold Fix.

A winner will be announced by the end of November and the revamped fix is expected to go live by the end of 2015.

The gold fix is a pricing benchmark used by industry participants such as central banks and jewellers to price deals.

Pricing benchmarks have come under increased ...

20 Oct 2014, 10:49 a.m.
Duncan Richardson

With deflationary pressures returning to the Eurozone policy makers on both sides of the Atlantic are coming under increasing pressure to respond with a fresh round of quantitative easing (QE).

Former Fed Official, James Bullard, was the first to hint the Federal Reserve may increase QE rather than taper to fight deflation and an economic slowdown in the Eurozone. Analysts are concerned a lack of liquidity is increasing the chances of another economic crisis.

Worryingly, French, Italian, Irish and Portuguese bonds yields have started to diverge when compared to Germany’s. This dynamic suggests traders are concerned deflationary pressures are increasing the chances ...

17 Oct 2014, 10:38 a.m.
Duncan Richardson

The gold price hit $1,250 per ounce yesterday as traders turned to gold after poor economic data out of the U.S caused equity markets to tumble.

Disappointing retail sales data caught traders by surprise which resulted in an equity sell off which spread immediately to Europe and then to Asian markets. The FTSE 100 fell 2.8% to a 15 month low and the Dow retreated over 1%. In Asia the Hong Kong, Chinese, and Japanese stock markets also experienced losses. Low inflation data from China also weighed heavy on the markets.

Historically gold performs positively in times of economic and political turmoil.

Gold ...

16 Oct 2014, 10:21 a.m.
Adam Pike
UKIP’s victory in the Clacton by-election shows the party’s popularity is surging. Political analysts are forecasting UKIP could secure over 100 MP’s in the May 2015 general election and hold the balance of power at Westminster. Nigel Farage confirmed UKIP intends to form a coalition with the Conservatives if the Tories agree to an immediate referendum on the EU.

The uncertainty caused by a possible referendum will increase as the election draws closer. Sterling is likely to come under pressure and businesses may defer investment decisions on a broader scale than seen in the Scottish referendum.

15 Oct 2014, 12:17 p.m.
Duncan Richardson

Five lawsuits which accuse HSBC, Deutsche Bank and Bank of Nova Scotia of manipulating the silver price have been consolidated in Manhattan federal court. The U.S. Judicial Panel on Multidistrict Litigation ruled the cases should be handled by Judge Caproni in Manhattan. Judge Caproni was selected as she is already over seeing allegations into gold price manipulation.

The plaintiffs accuse the banks of abusing their position in the century old silver fix to manipulate the price of silver. The silver fix was replaced by a new pricing benchmark in August and will be administered by Thomson Reuters and the Chicago Mercantile ...

15 Oct 2014, 10:14 a.m.
Adam Pike

Despite the silver price trading near a 4 year low the sale of American Silver eagles is nearing a 12 month high. Since the recent price decline which took gold below $1,200 and silver below $18.50 bullion dealers around the globe have reported a sharp pickup in sales.

The U.S. mint is no different and in the first 8 days in October sold 2.25 million silver American eagles and is on track to have their the best month of 2014. Sales in September were also robust with an average 1.305 million silver eagles sold each week. Typically 1oz American Eagles are ...

15 Oct 2014, 10:09 a.m.
Peter Walden

The gold price is trading at a new four week high as investors shy away from risky assets and turn towards the ultimate safe haven.

Concern over global growth continues to drive stock indices lower. Yesterday the Dow Jones Industrial Average, the world’s largest stock market, fell 1.35%.

The world’s largest gold backed exchange traded fund, The SPDR Gold Trust, which is often used as a barometer of investor sentiment, confirmed its holdings increased yesterday by 1.79 tonnes, its first inflow since September 10th.

The inflows started after Fed officials voiced concern that the current economic downturn could delay an increase in ...

14 Oct 2014, 10:09 a.m.
Adam Pike

Well that’s the view of market analyst, Peter Boockvar, who suggests the Fed will now act to lower the value of the U.S dollar in an attempt to make the U.S economy more competitive.

“The three-year bear market in gold, in my opinion, is over, because yesterday in their minutes the Fed officially three their hat in the global-currency war ring.”

To lower the value of a currency Central Banks typically reduce interest rates or inject newly created money into the system via the purchase of sovereign debt in a process known as quantitative easing.

Since the beginning of the economic crises it’s ...

14 Oct 2014, 10:09 a.m.
Duncan Richardson

The gold price rose during Asian trading as world equity markets continued their recent sell off. Safe haven buying pushed the gold price up to $1,234.80 per ounce at one point before settling at $1,233.15 per ounce.

Last week a raft of economic data indicated the world’s major economies are slowing caused global stock markets to fall.

On Friday Fed official, Stanley Fischer, expressed concerns over the health of the world economy and said the weak global outlook may hamper America’s ability to normalise their monetary policy after years of quantitative easing and low interest rates.

It would be extremely bullish for gold ...

13 Oct 2014, 9:39 a.m.
Duncan Richardson

It appears the European Central Bank (ECB) is running out of ammunition to fight an economic slowdown in the Eurozone. Despite the ECB cutting interest rates to historic lows and pledging to purchase corporate bonds from banks in an attempt to stimulate lending, it appears Europe may slip into recession.

The slowdown is putting pressure on the ECB to introduce a full blown quantitative easing program, however, Germany stands in the way. The Germans are against the ECB buying sovereign debt from member states as this would reduce the pressure on them to put their finances in order.

An ECB program of ...

10 Oct 2014, 10:26 a.m.
Duncan Richardson

The gold price is headed for its largest weekly gain since June as poor economic data from both sides of the Atlantic increased the chances of additional monetary stimulus.

The world’s main stock markets fell after Germany reported exports had suffered their biggest monthly fall since 2009, stoking fears the 18 member Eurozone is falling back into recession.

The gold price has advanced 2.7% this week after the IMF cut its global growth forecast for 2015. The gold price also benefited following statements from the European and Japanese Central Bank pledging to expand stimulus measures if needed.

Gold is currently trading at £759.39 ...

10 Oct 2014, 10:26 a.m.
Peter Walden

The International Monetary Fund (IMF) has confirmed the Chinese economy is now larger than America’s

According to the IMF’s latest report the Chinese economy is now worth $17.6 trillion, whilst the U.S. economy is worth $17.4 trillion. In percentage terms China’s share of the global economy is 16.48% and the U.S 16.28%. The IMF estimates that by 2019 the Chinese economy will be 20% higher than the U.S.

Tensions between the two superpowers are strained with the U.S. accusing Beijing of manipulating the price of the yuan lower to boost exports.

China is also putting into question the role of the U.S. dollar ...

9 Oct 2014, 10:23 a.m.
Adam Pike

The gold price rose to a two week high yesterday as fears of an interest rate hike in the U.S. eased. The dollar immediately fell against a basket of international currencies following the Federal Reserve’s latest statement.

The gold price has now risen for 4 consecutive days after touching a 15 month low in dollar terms on Monday.

In the latest Fed minutes officials expressed concern the dollar’s recent rally could lower inflation. The Fed also fears the economic slowdown in the Euro Zone will impact the U.S economy. The news prompted traders to bet the Fed will not increase interest rates ...

9 Oct 2014, 9:59 a.m.
Duncan Richardson

The gold price is up 2% and the silver price 3% since Monday as violence spreads throughout the Middle East and the IMF down grade global growth.

ISIS fighters appear to be on the brink of capturing the Syrian Kurdish town of Kobani located on Turkish border. The capture of Kobani will symbolise a turning point in the crisis, marking the failure to stop the expanding ISIS threat by airstrikes alone. As tensions in Turkey rise, thousands of Turkish Kurd protesters voiced their anger about the lack of intervention taken by the Ankara government.

Thousands of economists and bankers are ...

8 Oct 2014, 3:50 p.m.
Peter Walden

The gold price advanced for the second consecutive day yesterday following the International Monetary Fund’s (IMF) decision to cut their global growth forecast by 0.3% to 3.4%.

The gold price rose and the dollar fell after the IMF warned of lower growth in Japan, France, Germany and emerging markets such as Brazil. Stock market indices across the globe fell, with the S&P falling over 1% and the FTSE 100 also retreating.

German industrial output fell at its fastest rate since 2009 boosting gold’s safe haven appeal. The main stock market in Germany has fallen over 4% since the start of October.

The gold ...

8 Oct 2014, 9:57 a.m.
Duncan Richardson

The platinum price fell below $1,200 per ounce yesterday for the first time in 5 years as investors turned bearish on concern demand from China and Europe is weakening.

The platinum price at one point fell to $1,190.25 per ounce before recovering to $1,215.63 per ounce.

The platinum price has retreated 12% in Q2 following the end of the five month mining strike in South Africa. The price of the white metal has been under pressure from slowing demand for catalytic convertors in Europe and jewellery demand in Asia.

Holdings in the world’s largest platinum Exchange Traded Funds (ETF’s) are at their lowest ...

7 Oct 2014, 9:49 a.m.
Duncan Richardson

The gold price sank to its lowest level in 15 months as U.S. job growth beat expectations. The U.S. dollar rose on the news causing the silver and platinum price to fall to multi year lows. The gold price has failed to reignite despite airstrikes in the Middle East and the continuing unrest in Ukraine.

A strengthening U.S. dollar is placing considerable pressure on the gold price. In the last four months the dollar has rallied over 8% against a basket of the world leading currencies. With sentiment in the metals market extremely low a number of analysts are now expecting ...

6 Oct 2014, 9:18 a.m.
Duncan Richardson

The ECB has announced they are to inject 200 billion euros worth of newly created money into the financial system in response to the faultering Eurozone economy. The gold price surprisingly remained relatively flat despite this inflationary policy announcement. Over the last 12 months the gold price is down nearly £60 per ounce.

European stock markets reacted negatively with the Italian stock market dropping 4% as this latest action fell short of the ECB purchasing sovereign debt outright. Instead the Bank are to purchase covered loans in the form of mortgages and public sector loans.

As ECB Head Draghi said he ...

3 Oct 2014, 12:21 p.m.
Adam Pike

Former Federal Reserve Chairman, Alan Greenspan, believes the Peoples Republic of China want their official gold reserves to surpass that of the United States. The U.S. official gold reserves currently stand at 8,500 tonnes with an estimated value of $328 billion.

To achieve this target China would only need to convert a small percentage of their $4 trillion foreign exchange reserves. Greenspan’s aired his comments in a recent article entitled Golden Rule-Why Beijing is Buying.

He concludes a return to a gold standard is unlikely but warned fiat currencies may not be accepted as payment during a financial crisis. He highlighted that ...

3 Oct 2014, 9:51 a.m.
Duncan Richardson

The gold price rose during Asian trading as share indexes fell across the region. The gold price responded positively to poor global manufacturing data and the first diagnosis of the Ebola virus in the America.

Gold which is viewed as an alternative to fiat currencies in times of political and financial uncertainty rose by 0.6% to $1,220 per ounce.

Gold investors are closely watching the events in Hong Kong, where thousands of protestors are occupying large parts of the city demanding that China introduce free elections. Potentially the gold price could continue to rise if the situation becomes unstable.

The U.S. dollar continues ...

2 Oct 2014, 10 a.m.
Duncan Richardson

Despite silvers recent price decline investors are still adding to their silver Exchange Traded Fund (ETF) positions. Holdings in the world’s largest silver ETF’s are now just shy of their all-time high which was recorded in October 2013. Last week silver fell for the eleventh consecutive week, the longest losing streak since 1968.

Both gold and silver have been been hammered as a result of a strengthening U.S. dollar and speculation the Federal Reserve raising interest rates. A rising dollar makes dollar denominated precious metals more expensive in sterling.

Despite the price of both metals declining investors added close to $99 million ...

1 Oct 2014, 10:15 a.m.
Adam Pike

President of the China Gold Association, Song Xin, has recommended the Peoples Republic of China should accumulate over 8,500 tonnes of gold. Xin’s opinion was published in July’s addition of Sina Finance. Xin was also quoted as saying. “Gold is money par excellence in all circumstances and will help support the renminbi to become an international currency as gold forms the very material basis for fiat currencies.”

China last reported their gold reserves in 2009 when they stated their official reserves stood at 1,054 tones. China is now the world’s largest producer and consumer of gold which has led many analysts ...

1 Oct 2014, 10:15 a.m.
Peter Walden