China’s Consumption of Gold and Acquisition of Gold Mines Continues
Monday, 13 May 2013
Gold fell $12.90 or -0.89% on Friday to $1,443.30/oz and silver finished with a gain of 0.42%. Gold and silver both traded down for the week at -1.76% and -1.25%.
The downward pressure on the gold price emanated from Comex where gold futures were off 1.9%.
Driving the sentiment was the report that U.S. jobless benefits decreased to their lowest rate since 2007. Philadelphia Fed President Charles Plosser forecasted that day unemployment will drop to 7% by December 2013 and he favours reducing the Fed’s $85 billion monthly bond purchases next month. Plosser however has no vote on Fed policy this year.
While hedge funds are seeing outflows of $20.8 billion from gold funds this year, BlackRock Inc. the world’ biggest money manager is still bullish, reported Bloomberg.
Asian countries are seeing unprecedented demand for the yellow metal after the dip in prices in April.
India imported $7.5 billion of gold bullion in the last month up from $3.1 billion a year earlier. The country’s trade deficit widened 70% with the increase in gold and silver imports.