Spot market gold went to its lowest recorded level since August of 2010, citing that trading was as low as $1224 an ounce as stocks along with the Dollar rallied along with the Dollar which had better performance according to economic data on an earlier date. However, this midweek we saw gold in Dollars went 4 % lower on where it previously started.
The Euro gold price also was besieged with a three-year low this week, which dipped below the €940 an ounce. As contrary with April’s price drop, gold’s very recent fall has not been met with an active increase in demand for the physical bullion.
The world’s largest gold exchange traded fund SPDR Gold Trust saw massive outflows totaling 16.2 tons of bullion yesterday, talking total holdings down to their lowest level since February two years ago at 969.5 tones.
This is a seriously large daily decline which further shows the general lack of demand for gold as an investment tool at present. All in all, we could fairly say that these are not happy times at all.
On the currency markets, the Euro fell to a 3 week low against the Dollar this week with the US currency bolstering its strength after the release of positive economic data.
European stocks meantime extended this week’s gains following the recorded gains a day prior to the US markets following a better-than-expected data on the US durable goods, consumer confidence as well as home prices.
The Chinese Central bank’s liquidity pledge eased the storm on markets in the short term, but the picture is not that clear in the medium term. Silver, in the short-term has plunged below $18.50 this week, as with gold in its lowest level in three years.
In India, the world’s largest source of private gold demand, one its largest jewellery maker and exported reported that its expected earnings will grow 1o % during the present financial year. This is below prior speculations, with the dip the result of India’s recently introduced measures aimed at reducing gold imports by increasing the import duty to 8 % and limiting credit importation. Moreover, the exports added will not suspend the sales of gold bars and coins despite a request from the Indian trade federation.