“Tug of War” in Gold as Asians Buy Physical and ETF Investors Sell

March 6, 2013 By 11 Comments

tugofwarOutflows from the world’s biggest gold exchange traded fund, the SPDR Gold Trust (ticker: GLD), continued yesterday for the eleventh day running, taking the total volume of gold held to back GLD shares to its lowest level since November 2011.
“It is really a tug of war between ETF selling and physical buying right now,” says Yuichi Ikemizu, head of commodity trading, Japan, at Standard Bank.   “We have seen quite good physical demand from China and Southeast Asia, but the ETF selling has put a lid on gold prices.” [Read more...]

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Shanghai Gold Exchange Volume Soars to Record As Asia Stacks the Smack

February 18, 2013 By 4 Comments

imagesGold volumes for the benchmark cash contract on the Shanghai Gold Exchange soared to a record today, as the market re-opened after the New Year’s week long holiday and bargain hunters started buying.

The volume for bullion of 99.99% purity exceeded 22,000 kilograms (22 metric tons), according to data compiled by Bloomberg. Prices fell 2.8% to 327.25 yuan/gram ($1,630.29/oz) as of 5:04 p.m. Singapore time.

“Chinese investors returned to the market today after the holiday, and the slump in gold prices in the past week provided great incentive for buying as many Chinese are still holding a bullish outlook on gold,” Qu Mingyu, a trader at Bank of China Ltd., the 4th largest lender by assets, commented today.  The return of demand in Asia was not limited to China as demand in India was also seen overnight. [Read more...]

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