Gold is taking a breather today after four days of gains but is holding near three-week highs on hopes that physical buyers and investors will return to the market. The recent rally was sparked by the release of strong Chinese factory data on Friday which pushed up metals prices. The metal has gained over 4 per cent in the last four sessions through Monday, also profiting from US dollar weakness and a surprise rise in holdings of gold exchange-traded funds (ETFs). Gold rose nearly 2 per cent in the previous session on strong Chinese gold consumption and an inflow to SPDR Gold Trust, the world’s biggest gold ETF. The top eight gold ETFs have recorded outflows of about $US26 billion so far this year, hurting gold prices. A reversal in the trend will aid a price recovery.
China’s consumption of gold in the first six months of the year surged by more than half as sliding prices of the metal lured buyers, data showed, reinforcing expectations that the nation will overtake India as the world’s top gold consumer this year. Gold prices have lost about a fifth of their value this year after 12 years of gains, releasing pent-up demand across the world and particularly in India and China.
China consumed 706.36 tonnes of gold in the first half of 2013, up 54 per cent from the year-ago period, the China Gold Association said in a statement on its website.
Silver eased by close to 10 cents this morning after skyrocketing above the 21 price level on industrial demand and a rise in precious metals over the last few sessions. Silver is trading at 21.243 remaining strong against the gaining US dollar, which is trading at 81.44 this morning. Copper slipped while aluminum extended gains on Monday as signs of a pickup in top metals consumer China and expectations of encouraging eurozone data came up against a rise in the dollar.
The U.S. commodities market regulator has subpoenaed a number of major metals warehousing firms, including Switzerland based commodities giant Glencore, seeking documents and communications from the last three years as an inquiry into complaints about inflated metals prices gathers steam. The metals warehousing scandal is weighing heavily on major US investment banks which control the prices and costs.
For more information please visit our website century financial brokers.
Here is another blog that provides regular news and information and is very useful for Forex Signals.