GOLD TRADING in London's wholesale market was muted on Wednesday morning, failing to break more than 0.5% either side of $1300 per ounce while equities rose worldwide despite fresh military confrontations in eastern Ukraine.
Silver prices spiked to $19.80 per ounce but held nearly 2% down for the week so far, doubling the drop in gold.
Gold trading "had a very ugly day Tuesday," says a technical note from Canadian ScotiaBank's bullion division Scotia Mocatta.
"We have been stopped out of our bullish view, and have shifted to neutral."
"Surprising as it was," says US brokerage INTL FCStone of Tuesday's near-$40 plunge, "the sell-off in gold was likely attributable to heavy stop-loss liquidation," with "hectic" gold trading as the price fell through its 200-day moving average at $1300.
Falling some $15 per ounce "just in the span of a minute," says the note, gold's trading action was "indicative of stops being set off."
Playing catch-up with Tuesday's drop in New York futures, Shanghai prices today extended that fall to end the day equal to $1299 per ounce – a discount of $3.50 to London quotes this morning.
Gold trading was brisk however, with the Shanghai Gold Exchange seeing the strongest volume in its most active "spot" contract for almost 3 weeks.
Although China's retail sales grew sharply overall in March, rising 12.2% by value from the same month last year, sales of gold, silver and jewelry fell 6.1% new data showed today.
Forecasting a "year of consolidation" for China's gold demand in 2014 after the huge consumer response to 2013's gold price crash, a new report from market-development organization the World Gold Council said Tuesday that "Physical gold demand is likely to further growth over the medium term" as China's middle class swells from 300 to 500 million people by 2020.
Over-stocking by Chinese wholesalers is capping new demand, reckons Societe Generale analyst Robin Bhar, who tells Kitco News that "There is less metal being drawn out of US Comex warehouses and being exported to Asia, which had been particularly strong in 2013."
But with gold stockpiles in US Comex warehouses growing to new 10-month highs however, the cost of short-term gold loans in London rose Wednesday to new 8-month highs, suggesting tighter supply in the world's main wholesale market.
One-month GOFO rates – an incentive offered to would-be gold borrowers, who must pay storage and lose cash interest during the term of a loan – today went to minus 0.11% annualized.
That means London bullion lenders are asking the highest payment since mid-August, as the surge in 2013 Asian demand pulled gold out of UK storage.
ワールド ゴールド カウンシ ルが本日発表した レポート『 中国の金市場： その歩みと 展望（ China's gold market: progress and prospects）』は、中国の民間セクター金需要が現在の年間約 1,132 トンから 2017 年 には少なくとも 1,350 トンに達するだろうと予測しています*１。中国の金需要は 2013 年に記録的なレベルに 達し、中国は世界最大の金市場となりました。2014 年は小休止となるものの、その後はさらに継続的な成長 が続きそうだと同レポートは述べています。
同レポートは、中国で金市場の自由化が始まった 1990 年代後半以降に、中国を世界最大の金の生産・消費 国に押し上げた各種要因を分析しています。また需要の急増にもかかわらず、今後、経済の短期的な鈍化が あっても、...
India had raised the import duty on gold and silver in stages to 10% while it announces the import tariff value on gold and silver from time to time based on global price movements and to prevent under invoicing.
In the U.S., the March Advance Retail Sales jumped more than expected by 1.1% compared to 0.3% in February. The CPI and the core inflation, led by food and rent, rose more than anticipated by 0.2% in March.
GOLD PRICES fell hard Tuesday lunchtime in London, dropping 2.7% on the 1st anniversary of the worst gold price crash in 30 years as new data from China showed a marked slowdown in money-supply growth.
15 April 2013 saw gold prices drop nearly 15% at one point, ending more than 9% lower at $1351 for the worst day since 1983 and the fifth sharpest loss since prices were floated in 1968.
April 2013's crash in gold prices meant "Chinese consumers [brought] forward jewelry and bar purchases," says a new report on China's gold demand from market-development organization the World Gold Council.
Despite forecasting 20% growth by 2017, "That may limit growth in demand in 2014," says the report, China's gold market: progress & prospects.
Investment bank Goldman Sachs – which called for a sharp drop in prices last April – last week repeated its call of $1050 by year-end.
A new Reuters survey Tuesday put the consensus gold price forecast amongst 28 analysts and consultants at $1,254 on average in the last three months of 2014.
Reversing all of last week's gains on Tuesday, gold prices had "found stiff resistance" Monday above $1330, says French investment and London bullion bank Societe Generale.
The metal's charts then "formed a daily bearish [pattern] and gold is poised for a further correction."
"The market stretched as far as $1331 before it capitulated and sold off," agrees technical analyst Karen Jones at Germany's Commerzbank.
"Near-term risk remains on the downside."
"Overall sentiment [in metals] is weak," says a note from Canada's RBC commodity team, quoted by Bloomberg today as nickel prices fell at the fastest pace since October, "because China's economy is still a worry."
"Compared to macro-economic indicators," China's official Xinhua news agency quotes head statistician Sheng Songcheng, commenting on the slowest money-supply growth in more than a decade at 12.1% annually, "the current M2 growth rate has stayed at normal levels.
"Liquidity conditions are still ample to support the development of the real economy."
Gold prices in Shanghai today fell 1.1%, down to a 3-session low in the Yuan but cutting the discount to London settlement to 60¢ per ounce.
Now at a discount for 7 weeks running, gold bullion in Shanghai typically trades at a premium to international quotes, hitting $50 per ounce and more above London prices on spring 2013's crash.
Shanghai equities ended Tuesday sharply lower, but European stock markets reversed earlier losses as New York opened.
The Euro currency fell with gold prices, dropping near 1-week lows to the Dollar.
New US data showed consumer-price inflation rising to 1.5% per year, in line with analyst forecasts.
The country produced 19442 kg of silver in February, declined by 7.14% from 20938 kg in February 2013.