Category: Gold news

Gold futures rose during the Asian session on Wednesday.

Comex according to the classification of the New York Mercantile Exchange, has been trading futures contracts for gold in December USD1324.60 an ounce at time of writing, up 0.63%.

We have already been trading on a session high USD1326.90 an ounce. Gold points may find support at USD1306.20 and resistance at USD1366.50.

U.S. Dollar Index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.05% to trade at USD80.73.

At the same time on the Comex, silver price fell for the month of December by 0.57% to trade at USD21.708 per ounce, while the price of copper fell for the month of December by 0.19% to trade at USD3.256 per ounce.

Gold:

Gold fell slightly lower in trading yesterday after he had achieved his biggest increase on Wednesday in percentage terms since 2009 and the decline caused by gold as investors awaited the federal statements that are issued every day for stimulus plans

Gold closed at a price of 1321 dollars per ounce after it opened on the price of 1326 dollars per ounce.

GOLD support and resistance points

R1 1329.6 S1 1315.5

R2 1333.9 S2 1311.2

R3 1341 S3 1304.2

Pivot Point: 1322.6

(Reuters) – Indian measures to discourage gold imports is shutting the door on top exporter Dubai, where trade activity has fallen by as much as 60 percent over the past two months, dealers said.

With gold the most expensive non-essential item on India’s import bill, the country’s government, in moves to curb a bulging current account deficit, hiked the duty on gold bullion imports three times this year to a record 10 percent, while increasing the import duty on gold jewellery to 15 percent.

Pakistan also suspended a duty-free gold import arrangement in August after purchases soared in the first half and topped $514 million in July alone, citing smuggling into India. The ban was lifted in September, but trade has remained subdued.

“Overall, Dubai gold trade is down by 60 percent as a result of the Indian move and a swathe of paperwork and laws introduced by Pakistan recently, which make it very difficult to ship gold there,” said Abid Riaz, chief accountant at wholesalers ACM Gold in Dubai’s Gold Souk.

More than 25 percent of the world’s physical gold passed through the emirate in 2012, with the value of gold traded reaching $70 billion.

India, the world’s biggest gold market, is Dubai’s top trading partner for gold, accounting for around 50 percent of its total gold exports. In the first half of the year, Dubai’s exports of gold and jewellery to India stood at $21 billion, some 10 percent above last year’s figure.

On September 20, the Indian government and banks agreed how new rules on imports should work, but shipments into the country are unlikely to match the levels seen in the first half of the year, traders said.

“Even once imports have re-started, we will not see the same kind of volumes that we used to see earlier,” a Dubai-based source at an international trading house said.

“For now, there is a new imports model, which is quite complicated, and nobody still has a clear understanding on how to execute that,” he added.

SCRAP SALES

A sharp rise in Indian gold prices, which reached an all-time high above 35,000 rupees per 10 grams in August, also attracted a lot of scrap jewellery selling from the domestic market, which would have curbed imports from traditional suppliers Dubai and Switzerland.

“Even if there was no imports control, there wouldn’t have been much in terms of exports into India as you had a lot of old jewellery being resold within the country,” Emirates NBD head of commodities Gerry Schubert said.

But a higher gold rupee price compared to the cost of jewellery in the United Arab Emirates (UAE) is seen by some to be to Dubai’s advantage, as it could increase demand from Indian expats living in the Gulf, who would usually buy gold in India.

“With a 15 percent import duty on jewellery, gold in Dubai becomes much cheaper, and traders think that should be positive for Dubai’s jewellery demand, but Dubai is not a huge consumption market,” Gautam Sashittal, COO at the Dubai Multi Commodity Centre, said.

India’s measures are however unlikely to dampen local consumers’ appetite for the metal in the upcoming wedding and festival season and are conversely seen creating a big incentive for smuggling, which could help Dubai’s trade.

“Ultimately (in the next 6-12 months) a lot of Dubai-based Indian companies will manage the gold imports here and then bring the gold from here directly into India through whichever means necessary,” Emirates NBD’s Schubert said.

The World Gold Council says smuggled gold via neighbouring countries would hit 200 tonnes this year, up 50 percent on 2012.

Gold fell on Tuesday for the fourth day in a row on Tuesday with a higher U.S. currency dollar, while the lack of clarity on the monetary and fiscal policy of America to the decline in demand for the precious metal, as indicated monetary policy makers to the possibility of reducing the stimulus program cash by the middle of next month.

Gold fell by at 13:05 GMT to the level of $ 1309.07 per ounce from the opening level of $ 1321.40, and recorded the highest at $ 1329.02 and the lowest at $ 1305.81.

U.S. stimulus program

Doubts still dominate the investors towards the establishment of the Federal Reserve to reduce bond-buying program, or what is known as the monetary stimulus, doubts increased after comments monetary policy makers about the possibility of reducing the council program slightly during the month of October meeting next October.

Said James Bullard, president of the Federal Reserve Bank in St. Louis on Friday that the Fed may begin to reduce its purchases of bonds in October if the economic data helped to do so.

The chairman of the Federal Reserve Bank of New York William Dudley on Monday from the fact that the two main conditions for the disease to reduce the bond-buying program has not yet been achieved, pointing out that these two conditions are improving economic data, especially the labor sector and the return of confidence in the U.S. economy.

The metal has lost more than 22 percent of its value this year, with its appeal as a safe haven affected the recovery of the U.S. economy and growing concerns that the Fed will cut bond purchases that benefit commodities.

Government funding

Investors also focused on budget problems in the United States is the largest economy in the world. If the country did not reach an agreement on the budget before the end of September, the work may stop some federal government agencies, has been lagging behind Washington repay some of its debt if members of Congress did not vote in favor of raising the debt ceiling by mid-October.

(Reuters) – Gold inched lower on Monday, adding to the previous session’s sharp sell-off as confusion over the outlook for U.S. monetary policy dragged on, with weak buying from China overnight adding to the softer tone.

Comments from St Louis Federal Reserve President James Bullard that the Fed could reverse last week’s surprise decision to maintain monetary easing at its next meeting helped push gold down 3 percent on Friday, erasing gains made in a volatile week.

Spot gold was down 0.1 percent at $1,324.16 an ounce at 1425 GMT, while U.S. gold futures for December delivery were down $7.70 an ounce at $1,324.80.

Prices have fallen more than 20 percent this year, driven largely by Fed hints that it may begin to rein in its $85 billion monthly bond-buying programme before the end of 2013. Uncertainty over the timing of the move has led to choppy trading.

“After last week’s move a lot of people are confused on how the market is going and are trying to avoid big positioning ahead of next week’s non-farm payrolls,” MKS SA head of trading Afshin Nabavi said.

“Unless there is some mega change in the U.S. labour market, I don’t think we will have any QE slowdown this year and that should grant some support to gold.”

Ultra-loose monetary policy has been a key driver of higher gold prices in recent years, as it keeps up pressure on long-term interest rates, keeping the opportunity cost of holding bullion low, while stoking fears of inflation.

Friday’s hawkish comments from Bullard weighed on European shares early on Monday, while a landslide victory in German elections for Angela Merkel supported the euro.

PHYSICAL DEMAND SOFT

Buying in China, which is tipped to emerge as the world’s biggest gold consumer this year, was muted as buyers returned after the mid-autumn holiday. Chinese buyers are awaiting further price falls, dealers said.

Interest in gold-backed exchange traded funds remained relatively soft, with holdings of the largest, New York’s SPDR Gold Shares, easing another tonne last week. That has brought its total outflow for the year to 440 tonnes.

Among other precious metals, silver was up 0.1 percent at $21.81 an ounce. The gold/silver ratio, or the number of silver ounces needed to buy an ounce of gold, rose to 61.1, its highest since mid-August, as silver underperformed.

“In our view, the link between gold and silver market selling reflects the long-established gold-to-silver price ratio, the variations of which have historically occurred within a well-defined range,” Morgan Stanley said in a note on Monday.

“In a bullish environment for silver, prices for this metal tend to trade at or below the long-run average of this price ratio, which we estimate at 59.7:1. In bear markets, the reverse is the case.”

Spot platinum was down 0.3 percent at $1,423.49 an ounce and spot palladium fell 0.9 percent at $708.03 an ounce

(Reuters) – South African stocks inched lower ahead of a bank holiday on Tuesday but gold shares like Harmony were on the back foot as the spot price for bullion swayed on confusion over the outlook of U.S. monetary policy.

Bullion was down as much as 0.9 percent in earlier trade but recouped losses and turned positive in late trade.

Gold has lost more than a fifth of its value this year, driven largely by U.S. Federal Reserve hints that it may begin to cut back its $85 billion monthly bond-buying programme before the end of 2013. Uncertainty over the timing of the move has led to choppy trading.

Johannesburg’s Top-40 index dropped 0.25 percent to 39,444.06 on Monday and the All-share was down 0.17 percent to 44,017.73. South African markets will be closed on Sept. 24 to mark Heritage Day.

“People are not aggressively taking any position ahead of the holiday tomorrow,” said Henre Herselman, a derivatives trader at Nedbank Private Wealth.

The gold mining index shed 0.4 percent led by Harmony Gold, which was down 3.5 percent. Smaller producer DRDGold lost 4.5 percent to 5.55 rand.

Gold Fields went against the grain and added 2.4 percent after Citigroup raised its rating to “neutral”, from “sell”.

Telkom SA also benefitted from a positive rating, rising 1.5 percent after JP Morgan named also gave it a “neutral” from “underweight”.

Trade was relatively dull with only 103 million shares changing ownership, according to preliminary bourse data. Advancers led decliners 152 to 134, while another 56 were flat

Is expected to decrease the price of gold in the Egyptian market again due to decline in global markets, but that it will not pay sales forward », according to Rafik Abbasi, Chief, Division of gold and gems in the Union of Chambers of Commerce, commenting on the low gold price in the world market in the dealings of the endlast week by 2.9%, due to statements made by the Fed, the U.S. central bank, in St. Louis, which he pointed out that his country might turn next month to reduce the bond-buying program, known as quantitative easing, a program associated with the stimulation of economic after the global financial crisiswhich was launched from America in 2008.

And dropped the price of gold on world markets on Friday to 1325 dollars per ounce in the decades instant , after the increase in one day is Wednesday by 4.6 % as the rose of 1310 dollars to 1370 dollars, « has increased gold in the domestic market in the same proportion in this day and dropped on Friday, the same rate of decline , according to Abbasi, pointing out that the price of one gram of 21 carat gold, arrived on Friday to almost 267 pounds compared to the world at this price .

« But any decline even if the price of gold to the lower levels of this will activate the gold market because of the severe economic crisis » , he adds Abbasi, explaining that the Egyptians are buying gold for investment , and the economic crisis eliminated funding for their basic needs , also contributed to unrest following the revolution January in closure of many gold shops , which reduces the chances of vogue this market .

In light of global conditions volatile believed Abbasy it is difficult to predict the price of gold coming period , and therefore difficult to invest in. « If that happens it is unlikely that there is a citizen has a surplus now can buy it went far » , adding that « it was decided to Germany in the morning, selling 100 thousand tons gold , which has a find gold dropped sharply, or you take America ‘s decision to wage war on Iran Faisal price of gold to the highest levels .

Switzerland is considered the world’s most important center for gold trade, a success that can be explained by the decision taken by the Swiss government in early 1981 decision not to publish original, no destination, no precious metal stocks, which passes over Swiss territory, or inhabited.

In spite of the extreme importance of this decision, which has been described , it has now emerged strong calls to return with him , against calls another to maintain it , and still the government and parliament discuss these demands three months ago, but the final say will be a parliamentary session held mid-November (November ) next .

Story resolution “magical ” , which rose Switzerland towards the first World Centre in the gold trade after it was nearly 30 years ago , a normal country in this trade, complex and long .

During the first half of 2013, has been extracted nearly 1,400 tons of gold on the planet, according to figures from the World Gold Council , and if we add recycled gold , the total number will rise to about 2050 tons .

In the same period , the total quantities of the precious metal , which entered and exited from Switzerland 1,600 and 1,500 tons , respectively , according to the Swiss Federal Administration of Customs.

As the price per kilogram of gold is currently approaching 40 thousand Swiss francs ( $ 44 thousand ) , the value of these quantities equivalent to 64 to 60 billion Swiss francs ( $ 71 and $ 67 billion ), respectively.

And between 75 and 80 per cent of gold inside the World Trade pass the Swiss territory physically , that gold bullion itself is crossing the country and not through correspondence, and that part of this gold contributed to amplify the gold reserves stored in the local currency of the country, which is not counted in the statistics. The source and destination of this gold , not included in the statistics as well, since the first of January (January ) 1981, the Foundation began Customs Swiss Federal mere announcement of the total entry and exit of gold for the country, without specifying the quantities by geographic region contained them, nor the party that frequented .

Asked for ” economic ” reasons behind this change, which has been up since more than 30 years , the Swiss customs Foundation attributed it to the ” conflict ” between the newspaper ” Financial Times ” , the famous British and Swiss financial center .

Where the Swiss government has estimated that the reservation in the dissemination of data in the interest of Swiss banks and the financial center of the country , and that this interest was more important than the duty to respond to questions from the media .

To clarify the relationship of the British newspaper with the Swiss decision , confirmed customs Swiss , that in 1980 the newspaper ” Financial Times ” based on statistics Swiss draw conclusions controversial regarding the practices of the Soviet Union , and South Africa, and the Arabian Gulf , Iraq, and others, by analyzing trends States in the buying and selling of gold in times of war and peace, and the relationship of international politics , and so on.

This situation caused terror in the hearts of Swiss banks the big three , at the time, ( Credit Suisse, UPS, Societe de Bank Suisse ), after that I saw and touched the founders of the “Coalition of Zurich gold “, and key customers for gold took abandoning Zurich in favor of rival London.

But the deputy in the Swiss Parliament for the Socialist Party , Cedric Vermuth , who stands behind the call for the return of the Central Bank of the Swiss to publish all data on trade in gold , pursuant to rule transparency of financial and economic bring billions and strengthen the financial position of the country, had a different opinion in the decision.

The Vermot in an intervention the House of Representatives that the reasons for the government not to publish figures gold trade at that time and clear كوضوح water flowing from the rocks are hidden gold trade secret system with South Africa under the apartheid regime , “In May last year, the present MP inquiries of Parliament asked the government and the central bank Swiss to return to a policy view detailed statistics and transparent quantities, source, and destination, gold cross- country , saying: this would strengthen the financial position of Switzerland after scandals involving Swiss banks on tax evasion.

The student , Vermont , also detects all relevant transactions in gold caused by conflicts and wars , any movement of the precious metal destined for countries affected by armed conflict .

Following the parliamentary inquiry , was the establishment of a working group of representatives from the Federal Department of Customs , and the Ministries of Foreign Affairs, Economy and Finance to discuss the matter . The government will consider the results of the Group ‘s work on the sixth of November (November ) Next, before you submit its recommendation to parliament for a vote.

Economists believe that if they were forced Swiss banks in the future to be more transparent in its disclosure issues related to cross the gold in Switzerland , ” they can lose some lucrative activities , but the reputation of the financial center of the country will record positive points .”

” We have nothing to hide, ” This is what he said, Erhard Oburlei , Director of ” Arcor Heraeus ” , which is one of the five largest gold refineries in the country. This was the institution that is headquartered in the town Mondrizio , South Italian Tgino Province Company wholly owned subsidiary of the bank , ” UBS ” between 1973 and 1986.

And rejected two of the big Swiss banks , namely, ” UPS ” , and ” Credit Suisse ” to talk about the issue of gold. These two banks has sent the “economic ” to ” Swiss Bankers Association ” for information . The latter refused to comment on the previous trade to the activities of the gold , but said she would agree to the demands of re- consider providing statistics on gold .

It is noteworthy that five of the largest gold refineries are located in Switzerland , are ” Matalor ” in Neuchatel Province ( West), and ” we will examine Mito ” in Bien Province ( West), and ” Pump ” in the town of Castel San Billero , Province , Tgino , ” Falcamba ” town Balerna boycott , ( Tgino ) , and ” Accor Heraeus ” in the town Mondrizio , , boycott Tgino ( south).

There are different types of gold products graduated from the Swiss refineries , including several dedicated to the market Finance , Xbaúk of gold that could be weighing up to more than 12 kg per piece , which makes for central banks to be used as a reserve . The thin sheet consisting of 100 grams , it is used as a guarantee for certain types of funds.

Swiss factories also manufactures components of gold to the watch industry or the electronics industry , every mobile phone hiding in fact 24 Maljerama of gold ( compared to 220 Maljerama for laptops ).

At present, the country’s refineries directly imports the majority of the gold that you need. The case was not always like this. Since a long time the refinery ” Accor Heraeus ” belongs to the bank, ” UBS ,” The company ” Matalor ” in the hands of the bank ” Societe de Bank Suisse ” , which merged with the Bank ” UPS ” in the mid-nineties , the company ” Falcamba ” subsidiary Bank ” Credit Suisse ” .

LONDON (Reuters) – Gold fell on Monday after sharp losses in the previous session, with prices affected the situation of confusion about the expectations of U.S. monetary policy.

‘s Remarks led Bank President James Bullard St. Louis Federal Reserve that the U.S. Federal Reserve (central bank) may modify at its next meeting on the sudden decision last week to maintain the monetary easing to gold fell three percent on Friday to erase gains week dominated by volatility.

At 0955 GMT, the spot price of gold up 0.4 percent to $ 1319.76 an ounce, while U.S. gold futures fell December delivery $ 12.50 an ounce to 1320 dollars.

Prices have fallen more than 20 percent this year driven from the Fed that it may reduce its program to buy bonds worth 85 billion dollars a month before the end of 2013. Blur led on the timing step in market volatility.

I got silver in online transactions 0.9 percent to $ 21.60 an ounce.

Platinum fell 0.2 percent to $ 1423.50 and palladium fell 0.2 percent, also $ 712.97 an ounce