China's Gold Volume “Shot Through The Roof” Yesterday Ahead Of Lunar New Year

Tyler Durden's picture

From GoldCore

China's Gold Volume “Shot Through The Roof” Yesterday Ahead Of Lunar New Year

Today’s AM fix was USD 1,653.75, EUR 1,261.06 and GBP 1,028.07 per ounce.
Yesterday’s AM fix was USD 1,653.75, EUR 1,267.82 and GBP 1,029.60 per ounce.

Silver is trading at $30.38/oz, €23.25/oz and £18.95/oz. Platinum is trading at $1,569.50/oz, palladium at $672.00/oz and rhodium at $1,150/oz.

Cross Currency Table – (Bloomberg)

Gold fell $9.90 or 0.6% in New York yesterday and closed at $1,646.40/oz. Silver slipped to a low of $29.84 and finished with a loss of 0.2%.

Gold’s losses in recent days have been more pronounced in dollar terms as gold’s price fall in euros, pounds and other fiat currencies has been far more modest (see charts). Given the challenges facing all currencies in 2013 the price decline is likely another correction prior to further gains. 

Gold Spot $/oz, 21 days, 30 minutes – (Bloomberg)

Gold edged up on Tuesday as the euro held steady on to two days of gains on hopes that the European Central Bank will not cut interest rates at a meeting this week.

A Reuter’s poll of economists forecast no rate cut but they cannot agree on whether there will be further cuts in the next few months due to a muddled Eurozone economy.

Data showed Eurozone sentiment improved for its 5th month in a row, based on a drop in Spanish jobless figures and a successful Greek bond repurchase.  

Harmony Gold, South Africa’s 3rd biggest gold producer said its Kusasalethu mine remains closed and could be shut permanently with the loss of around 6,000 jobs after managers received death threats and police were shot at. 

XAU/GBP, 1 Month – (Bloomberg)

Reuters report that Asia's physical market has picked up so far this year, with buyers tempted by last week's big drop in prices -- when prices retreated to as low as 1,626 per ounce -- and on demand ahead of the Lunar New Year, traders said.

The trading volume on the Shanghai Gold Exchange's 99.99 gold physical contract shot through the roof on Monday, hitting a record of 19,504.8 kilograms, after double-counting transactions in both directions.

XAU/EUR, 1 Month – (Bloomberg)

"Physical demand is very strong," said a Beijing-based trader. "It's a combination of the attraction of lower prices as well as pre-holiday demand."

But such appetite could waver if prices recover towards $1,700, he added. 

U.S. gold gained 0.1 percent to $1,648.60. Shanghai's 99.99 gold traded at 331.58 yuan a gram, or $1,658 an ounce - a $10 premium over spot prices, compared to single-digit premium most of last year.

Technical analysis suggested that spot gold could edge higher to $1,665 an ounce, and a previous target of $1,625.79 has been temporarily aborted, said Reuters market analyst Wang Tao.

Bloomberg quoted Feng Liang, an analyst at GF Futures Co., a unit of China’s third-biggest listed brokerage who said “the recent price drop has attracted some purchases, evidenced by the volumes in China,”  “Whether this rebound can be sustained depends on the emergence of physical buyers, especially from China and India, at a time when demand is meant to be strong.”

In China, demand typically picks up before Christmas and lasts through the Lunar New Year in February. India’s wedding season, a peak-consumption period for gold jewelry, runs from November to December and from late March through early May. The countries are the two biggest bullion consumers.

For breaking news and commentary on financial markets and gold, follow us on Twitter.


Gold edges up on euro, Asia physical buying - Reuters

Gold Snaps Three-Day Drop on Signs of Increased Chinese Demand - Reuters

Gold 'Lures' Japan's Pension Funds, Govt Targets Inflation – Business Week

Be very sceptical of your fund manager's priorities – The Irish Times


Sterling crisis looms as UK current account deficit balloons – The Telegraph

Japan May Or May Not Mint Quadrillion Yen Coins, But It Will Monetize European Debt – Zero Hedge

US Mint Bullion Coin Sales – GoldSeek

Russell: The 60-Year Shocker, Silver Shorts & Gold – King World News

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GetZeeGold's picture



You had to know if they knocked it down China was going to buy's all in the manual somewhere.

CPL's picture

They couldn't get it down low enough.


I wonder what they are going to be shipped?  Tungsten or chocolate?  Tungsten is getting kind of pricy.

Harlequin001's picture

Oh, wait a minute, demand goes through the roof- price plunge coming then...

No need to bother yourselves SEC, the markets are working fine...

sablya's picture

No wonder the volume was so high - they double-counted transactions in both directions! 

If physical demand is so high, shouldn't prices be moving higher?  Isn't there any connection between the paper markets and the physical?

Super Broccoli's picture

everyone buys it but it's still going down ? could it be that the physical buying is way less than the paper selling ? ;-)

DowTheorist's picture

Renowned blogger Fofoa, with all caveats and disclaimers, seems to believe that 2013 could witness a massive revaluation of physical gold.

Please mind the word "physical." To tell better the difference between physical and paper gold and the time frame and related costs of each:

GetZeeGold's picture



Cat made a fortune off ANOTHER guy.

Kaiser Sousa's picture

notice how they spin the obviously bullishness of the facts with a completely counterintuitive caveat....the propaganda campain against both of the only 2 forms of real money is in full effect....


"Gold imports by China from Hong Kong almost doubled in November from a month earlier as expectations of an economic recovery and lower prices spurred purchases."



LongSoupLine's picture

This can't be right, Doushy Bank has downgraded gold and silver...Fucking crooked assholes

Stuart's picture

china says round eyes are fools. 

DosZap's picture

China stated they are going todouble their purchases of Au in the next 3 yrs.

Mad Mohel's picture

It's a game of chicken at this point. The West knows that the scam can go on so it doesn't matter if China buys the yellow rocks at record levels. And the East knows the West is bullshitting and doesn't want to be sitting on too big a pile of green toilet paper. Difficult to know who will come out on top at this point.

Kaiser Sousa's picture

"Difficult to know who will come out on top at this point."

no it aint...

The Golden Rule - 

"he who has the Gold, makes the rules...."

Mad Mohel's picture

Never underestimate the Power of the Schwartz. You do so at your own peril.

Quinvarius's picture

With gold as a tier one asset, the games are going to be ended one way or another.  They are not going to let JPM destroy the financial system by wiping out bank collateral with paper dumping.  Plus, as a miner, you don't have to sell at lowered fake prices anymore.  You can just deposit gold and you have the same thing as cash as far as borrowing and leverage. 

Stock Tips Investment's picture

The recent correction in the gold price, seems to be "manipulated". There is a demand for physical gold and a very large accumulation of "smart money" that is seen in most of the technical indicators. Despite the fall in prices we are seeing, the price of gold and made ??a breakout in early September last year. What we're seeing now is a process of accumulation prior to a "large increase" in prices.

Roosting Chicken's picture

Yes it broke up in September but has been tested twice since then.  It's at the apex right now and we'll find out in a week or two which way it will really break.  All indicaters are down.  Daily, weekly, and monthly moving averages are upside down.  Of course, analysis such as this ignores manipulation, but i just view the manipulation as the resistance.  Or perhaps selling of paper gold as the resistance.  Overall it does resemble consolidation so once all the paper gold is done it could REALLY break up.  If it drops below 1600, i think it will fall to 1400.

youngman's picture

OK so say I am a dumb investor...and I had my money in the hedge funds the last few lost money the PM´s have made money and you don´t have to pay 2 and 20.....

I just don´t get it...sure if you have the inside info or the HFT computer you can make money...but if you are an average Joe with a desktop and a pair of reading will the new normal is saving is bad...spending is good...taking out loans is is bad...welfare is good...debt is good....Tea partiers are lunatics...politicians who spend are GODS....guns are bad for the people....personal security for the elite is good

we are so screwed

GetZeeGold's picture



That's why they're trying to disarm us.

eddiebe's picture

If the Chinese are so smart why weren't they buying when gold was under $ 300.?

fockewulf190's picture

Probably because they actually believed in the US dollar.

dcj98gst's picture

At sometime one of these central banks issuing fiat will break ranks and print money to buy gold directly.  Monetize the gold so to speak.  Thats when it will game over.

Anasteus's picture

If this is going to continue this way we're soon out of physical metal... but at affordable price.

We are probably witnessing one of the biggest plunder of remaining natural gold resources in history targeted to mining companies. If I owned some I would retain at least half of the production. Mining and producing sound money in exchange for paper so blithely is beyond my comprehension.

Silver Garbage Man's picture

Five years from now will 1600 or 1700 matter?

ivars's picture

Interesting trend changes in silver coinciding with quaterly expiries over 2 years:

devo's picture

PMs have a lot of pent up energy. When it's released I don't know, but it feels like we're getting close.

Lin S's picture

Serious question, I need your input. 

My IRA has a modest amount of money held in GLD, but as I've been reading ZeroHedge I've learned that most of you guys don't like GLD, and say it's one of the worst.

I've moved a percentage of my IRA funds out of paper and into physical, but for the part that remains, what could I get into that would be better, or do better, than GLD?  I sincerely wish to know.

My thanks in advance for any advice/suggestions...



Quinvarius's picture

You could do PHYS which is actually redeemable in gold.

Lin S's picture

Awesome - thank you very much for this tip!  I'm a rank noob and still learning, and very appreciate your info/help. 

= )

EDIT: why would somebody give me a down arrow?  Did I say something wrong?

= (


batz's picture


Called this back in May 2012:

"There is little if any incentive for China to be forthcoming about how much gold it has. Officially, its holdings are valued at only %1.8 of their foreign exchange reserves, where the global average is nine times higher at over %16.  That is, China's official gold reserve numbers are not even statistically significant. While it is unlikely to hold none, we can make a baseless presumption it could have (or will shortly acquire) closer to 2-3000 tonnes. Somewhere between $120-180-billion at current prices. Why? Because it's a highly liquid hedge against devaluation of their USD reserves, and there would have to be some crazy and obvious reason for them to have purposefully eschewed the accumulation of gold, and in spite of the example of every other country accumulating it. "


What is totally weird is that these huge purchases are not sending Au through the roof.

Lin S's picture

Why is China selling Gold Pandas on the world market if the country is trying to acquire gold in large quantities?

Makes me wonder if Gold Pandas have been filled with something else...

silverserfer's picture

when you buy future mine production from a mine up front your price is locked in and does not affect the spot price. Physical purchases are done like this all the time. The real physical market is circling around the miners pre-paying their operations and making them in-debted to them for their investment. 

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