Given the strong demand fundamentals, particularly out of China, gold should go higher but as ever there is a risk of selling in the futures market leading to weakness in the short term as traders follow momentum and ignore fundamentals.
This demand continues and is being bolstered by official Chinese demand. The People’s Bank of China (PBOC) added another 15.98 tonnes of gold in August – at the same time its foreign exchange reserves fell a whopping $94 billion. The Chinese continue to diversify out of the dollar and into gold.
Today’s Gold Prices: USD 1120.85, EUR 1003.49 and GBP 728.27 per ounce.
Yesterday’s Gold Prices: USD 1121.00, EUR 1004.03 and GBP 734.75 per ounce.
Gold was marginally lower in gold trading in Singapore and this slight weakness continued to European trading with gold tethered to a remarkably tight $3 range between $1,123.70/oz and $1,120.50/oz.
Read more on the GoldCore blog.
Gold Inches up in Asia Trade – The Wall Street Journal
Gold stable, net long position up for fifth consecutive week – The Bullion Desk
Perth Mint Gold and Silver Sales Solid in August – CoinNews.net
China FX reserves fall record $93.9 bln in Aug as central bank supports yuan – Yahoo Finance
Hollande Readies Syria Air Strikes as Response to Refugee Crisis – Bloomberg
Real Refugee Problem – And How To Solve It – Ron Paul Institute
Data retention and the end of Australians’ digital privacy – The Sydney Morning Herald
China “Officially” Adds Another 16 Metric Tonnes – TF Metals Report
LBMA Apparently Altered Its Gold Refining Flow Statistics By 2,200 Tonnes – Jesse’s Café Américain
Did COMEX Counterparty Risk Just Reach A Record High? -Zero Hedge
Read the stories above on our News and Commentary page