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Geopolitical Risk, Significant Chinese Demand Supporting Gold
DAILY PRICES
Today’s Gold Prices: USD 1106.35, EUR 980.85 and GBP 716.87 per ounce.
Yesterday’s Gold Prices: USD 1107.75, EUR 989.73 and GBP 720.32 per ounce.
(LBMA AM)
Gold rose 0.7% on the COMEX yesterday and rebounded from a one month low. The most active gold contract for December delivery gained $7.30, or nearly 0.7 percent, to settle at $1,109.30 per ounce. Gold rebounded on what appears to have been short covering and a bit of safe haven buying.

Gold in USD – 1 Week
Falling European equities indices likely supported gold and gave a safe haven bid. Yesterday, the FTSE 100 Index, fell 1.2 percent, while French stock market benchmark index CAC 40 was also down 1.46 percent. Asian share were mixed but mostly marginally down overnight and European shares are marginally lower again this morning.
Gold in Singapore was marginally lower and in early European trading gold remained under pressure. Silver, platinum and palladium are all also a bit weaker, with palladium the biggest faller, down 1.2% today.
Still gold is currently set for a third straight week of marginal losses. Unless, we rally sharply before the end of the day, gold is set for a 1.2% fall this week. Silver conversely is higher this week and is up nearly 1%.
Palladium, which Russia has a near monopoly in terms of production, is outperforming, however, on a weekly basis, with a gain of 1.6% this week. Platinum's down 1.2% for the week.
Global demand for coins and bars remains robust and this is especially the case in China. One such indication of that demand is that yesterday, the Hong Kong CME contract saw the highest daily withdrawals of gold kilo bars from the exchange at 19.178 tonnes.

Another indication is the massive Chinese gold bullion imports from the United Kingdom have seen a significant uptick this year. In the first half of 2015 they are at a whopping 112 tonnes, compared to 110 tonnes for the full year in 2014.
This very significant increase likely reflects increased official Chinese demand. The PBOC is continuing to build its gold reserves in a bid to rival the near 8,500 metric tonnes that the U.S. is believed to have. The PBOC announced another increase to their reserves this week and they now stand at 1,693 metric tonnes - less than 20% of the reputed U.S.’ reserves.
Bullion buyers expect higher prices due to a combination of geopolitical, macroeconomic and monetary risk.
The Middle East is increasingly volatile and we appear to on the brink of a war in the region. This comes at a time of deep tensions with an increasingly assertive Russia.
Geopolitical risk remains high given increasing chaos in much of the Middle East and rising tensions between NATO and Russia. Russian forces have joined military operations supporting government troops in Syria, Reuters reports and today come reports from media in Israel that Iranian troops have joined their Russian counterparts.
Turkish warplanes bombed Kurdistan Workers Party (PKK) targets in northern Iraq overnight, a security source told Reuters this morning. This is the latest in a series of daily air strikes on the militants as conflict surges in southeast Turkey, Iraq and much of the Middle East.
A further deterioration in the situation in the Middle East including western powers bombing Syria and a likely Russian military response - would likely lead to a sharp escalation in safe haven gold buying.
There is also the ongoing risk of terrorism. Were ISIS to launch a terrorist spectacular on western soil, it could be expected to come on the anniversary of September 11th, 2001. The ‘911’ anniversary is today.
Given the confluence of still elevated geopolitical, systemic and monetary risks, we are bullish as we enter the seasonal 'sweet spot' for gold in the autumn period prior to Indian festivals and Chinese New Year.
Gold looks to be in the process of bottoming and while the technicals remain quite weak, the fundamentals - of an uncertain global economy, volatile and vulnerable stock markets and robust global demand for gold, particularly from China - are quite positive.
IMPORTANT NEWS
Gold snaps a 10-session string of losses – MarketWatch
“Bullion buyers expect higher prices due to a combination of geopolitical, macroeconomic and monetary risk” – MarketWatch
Gold and Oil Back in Favor as Commodity Funds See First Flows in 6 Months – Bloomberg
LME says in talks on launch of precious metals derivatives – Reuters
Iranian troops join Russians in Syria fighting – Yedioth Internet
IMPORTANT COMMENTARY
Brazil reduced to junk as BRICs facade crumbles – The Telegraph
It is in Warsaw not Athens that the march of the euro will be halted – The Telegraph
Precious metals – Keep holding gold – Money Week
Silver Price Forecast: Rush to Physical Silver Indicates System is On the Verge of Economic Collapse – Profit Confidential
QE4 is coming warns ‘Dr. Doom’ Marc Faber so buy gold! – Arabian Money
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8500 tons in China to meet US amount. I think is delusional. China might have 25000 to 40000 tons and Russia about 25000 tons. US I think is zip since Robert Rubin leased it all out during the Clinton years. Fort Knox stores nerve gas.
Chinese demand? That's funny, suddenly all those Chinese that thought Hong Kong was the best bet at laundering their ill-gotten cash for cold hard bricks of bullion must have decided it was easier to just make those transactions somewhere else because they sure as shit aren't buying their gold in Hong Kong atm.
SMH.
http://www.bloomberg.com/news/articles/2015-05-12/chow-tai-fook-seeks-20...
Chow Tai Fook’s same-store sales in Hong Kong, Macau and other markets dropped 26 percent in the three months ended March from a year earlier, dropping for a fifth quarter.
Permabulls need to start realizing if they can't produce more nuanced message they're just producing more noise.
You trolls really crack me up with your irrelevant data that you cherry pick. If you want to even start to look relevant start looking at country wide demand figures like this.
https://www.bullionstar.com/blogs/koos-jansen/india-precious-metals-impo...
Once you have a look at India then move on to the SGE withdrawl figures. You might even learn something unless of course you're a paid troll or a bot. In that case you can just fuck off.
Chow Tai Fook is the largest chain store for gold in Hong Kong. That's a very bad number and proves the Doctor's point.
Of course our overlords will do whatever they want/care to in order to maintain the game. Not one in a 1000 even knows how we "just happened' to get legal tender laws past the obvious 5th amendment problems or about the most basic court packing scams. And most people won't even bother to learn if the information is handed to them on a silver platter. Those are the facts. Thus, nothing will change. http://www.thetruthaboutthelaw.com/our-legal-tender-laws-were-blessed-by...
Thank you for that link.
I think 'Coming' means the post is coming ... later
Dear Goldcore,
If you give your article a title like this:
"Cash Withdrawal Limits and "Bank Holidays" Coming?"How about at least one sentence on that subject?
Marked you up b/c if I'd seen this first, my response would have been the same.
But in fairness to GoldCore, this is only the second half of his original article, which can be read in full here:
http://www.silverdoctors.com/cash-withdrawal-limits-and-bank-holidays-co...
The first half does discuss limits on cash withdrawals and holidays b/c central banks can't lower interest rates further or justify more bail-out.
FWIW
I see ZH has changed its title now, to something more appropriate, but I thought I would let you know in case you wanted to read the part mentioned in the original title (which presumably is what you clicked on it for).
Goldcrap keeps pushing the uber doom porn in order to sell their product. A stopped clock is right twice a day. As far as accurate predictions over the past year, the broken clock wins.
Just keep stackin'!
Gold below 1100$ heading for 700$
BUT the smart money is adding at every dip (since 1900$)... Blablablabla
its probably smart helicopter money, because its been buying every down dollar, its a lot of money, where did they get it from if not some helicopter ?
Let me guess. You're a Japanese central banker.
Maybe when the Japanese CB starts to buy gold, I'll consider buying some earnestly
kuro_neko, you've been here 6 weeks and six days and you are an expert on gold? And you think that the geo-political risks all over the world will cause gold to go down? Hmmmm, how much do you get paid to do this kind of work? Do you also have one of those troll bot sites where people can go and work from home making $8000 an hour watching porn?
GTFO
Yeah, you prefer to listen to an expert like Goldcore whos been here posting EVERY single day.
He's been talking every day about geo-political (and economic) risks all over the world that will cause gold to go UP.
Well, some of those geo-political (and economical) risks have indeed materialized, *BUT* gold has been trending down.
So GC has been half-right. but unfortunately, he's been wrong about the part you really care about...
Maybe you prefer to listen to a "Expert" in BS like Goldcore.
However you should maybe listen to an amateur like me.
I think the current trend will continue. geo-political (and economic) risks all over the world will increase, AND Gold will continue to go down ?
Why ? First and foremost ? because the trend is your friend. One can be ignorant about the reasons, any idiot can see the price action and see the trend is bearish.
Second, if i try to rationalize whats going on in the gold market. there was a strong bullish trend that took up us to 1900$. From that point, the rally exhausted, while the equity continued unabated thanks to agressive CB QE easing. Gold Longs start to exit the (iliquid) market, and the bear action feeded on itself with more longs exiting (= taking profits). I would say we are in a new phase, with "forced" sellers of gold, and some speculative short building.
Who are the forced sellers ? the same ZH has reported that India is starting to confiscate gold (after once trying to tax it heavily) and China is using gold as collateral. Somehow GC manages to spin those stories as being bullish for gold, the truth is , its UBER bearish. Think a bit. if you were Indian and knew your govt would start to confiscate gold. what would you do with it ? sell it and raise some cash while you still can... If you're a Chinese bank and you have gold as collateral from a unsolvent debtor, what do you do with it ? you sell the collateral to cover the debt..
Don't shoot the messenger. When Gold trades at 700$ don't complain nobody told you. When you complain that the price is manipulated, because there is some "LAW" that stipulates that gold should ALWAYS trade up when there are geopolitical risks (which materialize), remember that some people told you that there is no such law...
now i *DO* accept gold coins as a payment for my sound advice
k n
you have much to learn grasshopper.
Things are not always as they seem.
Premiums to buy going up while premiums to sell…
How bout' a nice Hawaiian Punch!