Western Bankers Sell paper Gold, Asia BUY Physical Gold
Here is the yo-yo. Western Bankers sell paper gold to try to suppress the price of Gold and Silver buy the consequences is that the Asian are scooping up the physical metal at bargain price everytime the Western bankers knocked it down so that they can keep printing and make people have faith in the fiat.
Yeah...Mario...a currency war is a currency war. Just like they say, if you put lipstick on a pig, it is still a pig.
DUMBO here is what Asian is doing:
..PRECIOUS-Gold inches up on Asia demand; firm dollar caps gains
Reuters – 8 minutes ago
* Physical demand seen from China, Southeast Asia
* Weak interest from Western investors keeps a lid
* Spot gold may drop to $1,592/oz - technicals
* Coming up: Germany ZEW economic sentiment; 1000 GMT
(Adds comments, details; updates prices)
By Rujun Shen
SINGAPORE, Feb 19 (Reuters) - Gold rose for a second
straight session on Tuesday, buoyed by strong physical buying in
Asia after traders in China returned from a week-long break, but
the lack of interest from Western investors and a firm dollar
kept a lid on gains.
Gold dropped by a steep 3 percent last week -- biggest such
drop in nine months -- and Chinese traders rushed to pick up
bargains when they resumed business this week, sending volumes
on Shanghai Gold Exchange to record highs on Monday.
But the frenzy can be short-lived, traders cautioned.
"We have seen very good physical demand from Southeast Asia
and China," said Yuichi Ikemizu, head of commodity trading,
Japan, at Standard Bank.
But the strong interest from Asia did not translate into a
quick rebound in prices, as enthusiasm from investors outside
the region has cooled due to an improving global economic
outlook that dims gold's safe-haven appeal.
"Asians are buying, but it is offset by the selling from
funds in the Western market," Ikemizu added.
Speculators cut their net long positions in U.S. gold to
70,250 contracts in the week to Feb. 12, the lowest level since
December 2008, down more than 30 percent from the end of 2012,
data from the U.S. Commodity Futures Trading Commission shows.
Spot gold rose 0.3 percent to $1,614.56 an ounce by
0254 GMT, off a six-month low of $1,598.04 hit late last week.
U.S. gold had also gained 0.3 percent, to $1,614.50.
A firm dollar, however, capped gains.
The dollar rose to its highest against a basket of
currencies in more than a month, putting pressure on
commodities priced in the greenback by making them more
expensive for buyers holding other currencies.
Spot gold could drop to $1,592 an ounce during the day after
a moderate consolidation in a narrow range of $1,606.83-$1,618,
Reuters market analyst Wang Tao said.
"Investors would rather put money elsewhere when the U.S. is
recovering and the euro zone economy seems to be on the mend,"
said Chen Min, an analyst at Jinrui Futures in the southern
Chinese city of Shenzhen.
"Chances are small that prices will rally soon as the
sentiment has turned bearish, and we may see the decline of
prices into mid-year slack consumption season."
Chen expected gold to drop to as low as $1,500-$1,550 by
Investors will closely read the minutes from the latest
policy meeting of the U.S. Federal Reserve, due Wednesday, which
could shed light on that central bank's attitude to monetary
stimulus, which was a key driver behind gold's rally in recent
Violence in South Africa's platinum sector may support
prices of the metal that is mainly used in industrial
application and jewellery. At least 13 people were injured in a
labour fight at a mine of Anglo American Platinum, the
world's top platinum producer.
Spot platinum was little changed at $1,691.74, off a
two-week low of $1,666.50 hit last Friday.
Precious metals prices 0254 GMT
Metal Last Change Pct chg YTD pct chg Volume
Spot Gold 1614.56 5.01 +0.31 -3.58
Spot Silver 30.12 0.28 +0.94 -0.53
Spot Platinum 1691.74 -0.26 -0.02 10.21
Spot Palladium 760.37 -0.63 -0.08 9.88
COMEX GOLD APR3 1614.50 5.00 +0.31 -3.66 72010
COMEX SILVER MAR3 30.10 0.25 +0.84 -0.43 19684
COMEX gold and silver contracts show the most active months