Gold Price News

Thursday 7th November 2013

Gold Flows East

China’s 2013 annual gold mine production is set to exceed 430 tonnes, whilst gold imports via Hong Kong are expected to top a record 1,000 tonnes for the first time, according to the World Gold Council.

Vietnam, Indonesia and China have increased their total gold imports to 60% of the world supply up from 35% in 2004. Also in India, gold smuggling is expected to rise by 600% as a result of the governments increase in gold duty from 10% to 15%.

Surprisingly gold continues to trade sideways this week, despite the Feds recent failure to taper and US senate raising the debt ceiling for the 76th time.

Combined with such persistent physical demand from Asia and continued outflow of ETF gold from London, the questions has to be asked, just how long can gold remain at these levels?

View the 30 day gold price chart

Tuesday 1st October

Gold Dips 3% on US News

At 1pm the gold price plunged 3% to just below £800 per Ounce as traders in the US reacted to the US governments lay off of 800,000 workers in the latest episode in the US budget crisis. Traders marked down commodities and stocks across the board as funds flowed into the "safe haven" of government debt.

Is the inability of the US to come to any agreement on how to address its severe budget issues really bad news for the gold price, or is it a buying opportunity created by large traders running "sophisticated" short-term computer models?