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Commerzbank: Indian Gold Buying Eases; Chinese Demand Strong

Kitco News

The latest data from the world’s two largest gold-buying nations points to soft demand in India but strong buying in China, points out Commerzbank. Analysts cite data from the country’s Ministry of Finance showing that gold imports plunged by 42% year-on-year to 38.8 tonnes in October. “The consumer restraint was chiefly due to the steep rise in gold prices in Indian rupees beforehand,” Commerzbank says. “Bullion dealers and jewelers are running numerous special offers in a bid to revive gold demand in India during the Dhanteras and Diwali festivals that are taking place this week.” Meanwhile, analysts cite data from the China Gold Association showing that the country’s gold demand grew by 5.1% year-on-year to 850 tonnes in the first three quarters, with the organization attributing this to falling gold prices, weak stock markets, exchange-rate moves and the China-U.S. trade tensions. The organization’s data for gold demand is significantly higher than that compiled by the World Gold Council, Commerzbank points out. Meanwhile, China’s gold production decreased by 7.5% to 290 tonnes from January to September. “China is filling the gap with imports – for example, from Hong Kong and Switzerland – and will also remain a major gold importer in the future,” Commerzbank says.

By Allen Sykora of Kitco News; asykora@kitco.com

 

INTL FCStone: Gold Must Break $1,240-$1,245 To Spur Fund Buying

Tuesday November 06, 2018 08:51

Gold and silver may fare better in November, but gold needs to clear resistance around $1,240 to $1,245 an ounce to attract more fund buying, says INTL FCStone. “A weaker dollar, perhaps setting in by month end on the back of a possible Trump-Xi breakthrough [on U.S.-China trade relations] could give both complexes a late-month lift…,” INTL FCStone says in its monthly commodities outlook. “We are mildly constructive on platinum, but see palladium as being overdone at current levels on account of car sales slowing in both the U.S. and Chinese markets. We said the same thing last month and were proven wrong, but would stick to the narrative going into November.”

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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