Morning Gold & Silver Market Report – 8/13/2013
CHINA TO OVERTAKE INDIA AS LARGEST GOLD CONSUMER
The fall of the Japanese yen, along with the latest China Gold Association data released Monday, influenced Gold prices in overnight trading. After ending Monday up, the price for the yellow metal is down slightly in morning trading. However, Barry Dawes, head of resources at Paradigm Securities, stated, “The physical demand for Gold is robust and we're seeing premiums in Asia that you don't see in other parts of the world. The physical market for Gold is now really tightening up and the shenanigans being played by hedge funds and bullion and investment banks may just be coming to an end.” According to the World Gold Council, China is expected to overtake India this year as the world’s largest consumer of Gold, with their consumption rising 54 percent in the first half of 2013 as compared to 2012.
Investors will be looking for market signs today after the release of U.S. consumer spending reports. With the U.S. Federal Reserve still planning to begin reducing its asset purchases, these upcoming reports could play a major role in the decision making process. BK Asset Management managing director Kathy Lien wrote that last month’s increase in retail sales “plays a particularly important role in the Federal Reserve’s monetary-policy plans. With only five weeks to go before the September [Fed policy] meeting, every piece of data counts.”
At 9:29 a.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,331.20, Down $5.00.
- Silver, $21.56, Up $0.13.
- Platinum, $1,506.20, Up $6.50.
- Palladium, $740.50, Up $1.50.
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