Gold demand sinks 21% in the third quarter against a year ago,in a good agreement with the forecast from January 2013
Following gold price slip;
Barrick Gold Corp is laying off roughly 1,500 of its approximately 5,000 workers on the Argentine side of its suspended Pascua-Lama gold mine project, a local government spokesman said on Saturday.
Gold took another turn lower in electronic trade Thursday, but the damage was minimal as prices found some support from those turning away from equities ahead of a possible reduction to the Federal Reserve’s monetary stimulus.
And it is near $1250 as predicted
Commerzbank analysts are bullish on what lies ahead for gold prices later in 2014, as they believe investment demand should gradually revive. But for the short term, they are skeptical.
“The debate about the scaling back of the Fed’s bond purchases will remain a negative factor for the gold price at the beginning of 2014,” they said.
China is both the #1 producer and at the same time the #1 importer of gold. Again, these commodities are traded in dollars, forcing the Chinese to buy dollars. To reduce its vulnerability to U.S. debt, China is looking to expand its central bank gold reserves. To that end, it has financed the purchase of many foreign gold and base metal mines in Asia, Africa and Latin America. The Chinese government has bankrolled $4 billion in loans to Chinese companies in two years just on gold mine acquisitions, mostly in Australia (which whom it has a yuan trading agreement.) The gold produced in these mines goes straight to China, and never sees the open market. With enough gold production under its control, China can move the focus of the gold trade to Hong Kong or Shanghai, and dictate that gold contracts be denominated in yuan.
More of the same:
Gold futures failed to gather their footing on Tuesday, extending a loss from the prior session that pushed prices to lows not plumbed since July.
Gold is $1224 per ounce today.
The outlook for gold has been for further losses ever since a series of positive U.S. economic data points raised speculation that the Federal Reserve would taper its economic stimulus before the end of the year. Many analysts are bearish, and are likely to remain so until there is clarity about when the actual cutting of quantitative easing will begin.
Gold futures on Wednesday settled at their lowest level since early July, pressured by strength in the dollar as traders mulled the metal’s appeal against a backdrop of rising U.S. consumer sentiment as well as declines in durable-goods orders and a Chicago’s business gauge.
Looking at the Gold price chart , it is apparent that the .618 Fibonacci retracement level around 1275 is important on a closing basis.
As well, Gold bulls want to see the current uptrend hold. If it breaks, or is punctured, it would set the stage for a retest of the lows.
Dollar gains, gold slides following jobs number
The dollar gains across the board behind the strong jobs print. The greenback is making its biggest move vs. the yen (FXY -0.7%), but is also higher vs. the euro (FXE -0.4%), pound (FXB), Swiss franc (FXF), and aussie (FXA -0.5%).
Gold Fades From Investment Picture:
Central banks in Russia and elsewhere are cutting purchases of gold, further weighing on prices of the metal. Prices are down 19% year to date. The last time gold prices posted an annual loss was 2000