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Swiss Trade Data Shows Gold Demand Strong In China, India – UBS

Thursday April 23, 2015 12:30 AM

Physical gold demand saw considerable pick up in March says commodity analysts at UBS, quoting trade statistics from Switzerland. According to the Swiss data, 223.3 tonnes of gold was export out of the country, the highest since November. “This was largely driven by strong growth in flows headed for China and India, which looks broadly consistent with anecdotal evidence.” According to UBS, China imported 46.4 tonnes of gold from Switzerland and India imported 72.5 tonnes. They added that Chinese demand was stronger in March as business restocked their supplies after the Lunar New Year celebrations. At the same time Indian demand was strong in preparation for Akshaya Tritiya festival, which was held Tuesday.

By Neils Christensen of Kitco News; nchristensen@kitco.com


Investors Finding Bargains In Gold – RBC's Gero

Thursday April 23, 2015 12:30 AM

The gold market is starting to attract some bargain hunters as prices rebound Thursday off of three-week lows. Comex June gold futures last traded at $1,190.90 an ounce, up $4 on the day. George Gero, vice president and precious-metals strategist with RBC Capital Markets Global Futures, says that open interest in gold futures has finally pushed above 400,000, which is an indication that funds are starting to allocate capital back into precious metals. “Until now funds were fleeing gold in the first quarter sending funds to stocks and better performing assets.”

By Sarah Benali of Kitco News; sbenali@kitco.com


A New Hope For Greece Supporting Euro – BBH

Thursday April 23, 2015 9:16 AM

A glimmer of hope that Greece and its European creditors might agree to a new funding agreement is helping to support the euro against the U.S. dollar, say currency analysts at Brown Brothers Harriman (BBH). Spot EUR/USD is trading at 1.0772 up almost half a percent on the day. “The talk is that the official creditors are shifting their tactics toward concentrating on a few actionable reforms rather than broad demands. They are also open to restructuring Greece’s debt within the monetary union, which is essentially what they previously suggested after Greece reached a primary budget surplus,” they say. Greece’s debt problems have been an interesting issue for the gold market. Analysts have expected geopolitical uncertainty regarding Greece’s future in the eurozone to help gold prices. Analysts have also noted that a weaker U.S. dollar could be positive for the yellow metal as there is currently a high negative correlation between the two markets.

By Neils Christensen of Kitco News; nchristensen@kitco.com


Long-Term Investors Slowly Jumping Back Into Gold ETFs – HSBC

Thursday April 23, 2015 8:59 AM

According to the latest data from SPDR Gold Shares (NYSE: GLD), the world’s largest gold-backed exchange traded-fund (EFT), investor flows are modestly positive for the month so far. As of April 22, the ETF has seen its gold reserves grow by 164,282 ounces to 23.87 million ounces. The inflows come after a decline of 843,923 ounces reported in March. Commodity analysts at HSBC said that globally, among the top 14 gold ETF’s, gold reserves rose by 0.1 million ounces to 52.2 million ounces. “The rise in gold holdings so far in April may be viewed as a sign of strength from longer-term investors. These investors are often viewed as having a buy and hold philosophy when compared to investors on the faster moving COMEX,” they say. “A further build in gold-holdings in ETFs may help support prices, in our view.”

By Neils Christensen of Kitco News; nchristensen@kitco.com


Weak New Home Sales Could Push Gold Higher – TDS

Thursday April 23, 2015 8:35 AM

Better-than-expected existing home sales number from the National Association of Realtors helped to push gold to a three-week low Wednesday but Bart Melek, head of commodity strategy at TD Securities warns that investors should expect a recovery in the housing sector just yet. He explains that lumber prices remain 25% below levels seen at the start of the year; a strong housing market could increase demand for lumber. While gold dropped following Wednesday’s housing data, he says that it could rally on disappointing new home sales to be released Thursday. “There is a considerable risk that March U.S. new home sales may also disappoint, as it has recently bucked the negative trend. It could also be that the relatively stronger existing home sales came at the expense of new home sales,” he says. “Given that gold dropped sharply to just below $1,187/oz, shortly after the existing home sales numbers, it may make sense to take a long position ahead of new home sales data - calls are also relatively cheap when compared to puts. Any sign of U.S. housing weakness could push out the market expectations of a first U.S. Fed Funds hike beyond December into 2016.”

By Neils Christensen of Kitco News; nchristensen@kitco.com



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