Tangible Investments

September 29

2014

Weekly Gold Market News

Unrest Increases Safe Haven Demand For Physical Gold

Los Angeles CA, (Tangible Investments) - by James O’Dell - Gold and Silver prices retreated on Monday as a stronger dollar trumped the unrest in Hong Kong that prompted an advance in the Gold price on safe-haven demand in overnight trade. The yellow metal eased modestly on Friday when Gold slid $2.40 or 0.20 percent to finish the week lower at $1,219.40 an ounce as the dollar hit multi-year highs against a basket of major currencies. Silver dipped $0.06 or 0.34 percent to end the week at $17.66 an ounce, while the Gold/Silver ratio, the measure of the number of Silver ounces needed to buy an ounce of Gold, fell to 69.05.
 
Last week began with a report that central banks continue buy up bullion as Gold prices ease. Russia announced last week that another 9.3 tons of Gold was added to its official Gold reserves which now stand at 1,113.5 tons, and rank fifth largest in terms of world holdings, even outranking China’s declared 1,054 tons. Few believe, however, that China doesn’t have a larger Gold hoard than it claims to the International Monetary Fund (IMF), and the world.
 
Arguments made by New York Fed president William Dudley for "patience" on interest rate increases last week, saw the Gold price spike to nearly $1,240.00 an ounce, as he downplayed any importance associated with hawkish interest rate projections made by Fed members a week earlier. With inflation well below the Fed's 2 percent target, "patience" on interest rate increases may mean letting the economy run "a little hot," said Dudley at the Bloomberg Summit in New York. "We really need the economy to run a little hot, at least for some period of time," added Dudley.
 
Events in the Middle East prompted some safe-haven demand and short covering in Gold after the U.S. and its Arab partners launched air strikes against Islamic State (IS) and Khorasan group positions in Syria. The targeted strikes used both land and sea based aircraft and Tomahawk cruise missiles launched from two Navy ships in the region to attack the militant IS fighters. The U.S. will continue air strikes on the IS militants for an as yet undetermined period of time.
 
In India, Gold demand has picked up across the country with the start of the festival and wedding seasons, say experts. Jewelry sales are soaring due to the recent price drop, and jewelers anticipate demand climbing 30 percent over the next three months. Dealers in Mumbai have been somewhat surprised by the heavy rush of buying due to the bargain prices. "We are likely to see heavy demand till the wedding season, which starts next month," said Haresh Mehta, of Premji Walji Jewelers, who says that he believes consumers will buy more Gold this year than in 2013.

India's inauspicious period of Shradh, when Gold buying is frowned upon, ended on Wednesday, now Gold demand will typically rise until Diwali the "festival of lights," in late October. “Gold has been helped by geopolitics and weaker equity markets,” wrote Zhu Runyu, of CITICS Futures Co., in an e-mail last week. Gold dipped to a nine month low of $1,206.85 on Thursday, but rebounded as the Dow plunged more than 250 points, and investors sought the safety of physical Gold.
 
“We have had that kind of a week -- up one day, down the next,” said TD Securities. “We continue to believe that the selling in precious metals is overdone, but we may have to wait until after the end of September before we see and kind of stability.” The wait may not be that long with the festival season having already begun in India, one of the top Gold buying nations in the world.

Preserve your wealth and secure your retirement by making a tangible investment in physical Gold and Silver in 2014. Call Toll Free 1.800.741.5014 and allow the friendly staff at Tangible Investments (learn about us here), owned and operated by world-renowned coin expert Silvano DiGenova, to assist you in your next purchase or sale. You may also want to allow one our Gold IRA specialists to construct for you a precious metals IRA tailored to your specific needs. We also hope you will share our site with your friends on Twitter and Facebook.

Latest Spot Prices

METAL BID ASK CHG$ CHG%
Gold 1216.10 1216.80 $2.10 0.17%
Silver 17.05 17.09 $0.14 0.81%
Platinum 1272.30 1275.30 $11.10 0.86%
Palladium 769.10 772.10 $7.90 1.01%

Other News This Week

Gold Safe Haven Appeal Driving Sales At Perth Mint

Los Angeles CA, October 2 (Tangible Investments) - by James O Dell - The Gold price rose moderately on Wednesday as the yellow metal gained $5.20 or 0.43 percent to close at $1,214.00 an ounce,... [Read More]

Gold Gains As Shelling Resumes In Ukraine

TANGIBLE INVESTMENTS - Los Angeles - by James O Dell - Gold and Silver bullion prices rebounded somewhat on Wednesday on bargain hunting and safe-haven buying, with Gold gaining 0.50 percent to $1,214.60 an ounce,... [Read More]

Investors Bought Twice As Much Physical Gold In September

Los Angeles CA, October 1 (Tangible Investments) - by James O Dell - Gold and Silver prices dipped sharply on Tuesday with Gold easing $7.00 or 0.58 percent to close at $1,208.80 an ounce, while... [Read More]

Geneva Report Warns Global Interest Rates Must Remain Low

TANGIBLE INVESTMENTS - Los Angeles - by James O Dell - Precious metals prices retreated sharply on Tuesday, with Gold easing 0.50 percent to $1,209.70 an ounce, an eight month low, while Silver fell 2.62... [Read More]

Gold Edges Higher On Safe Haven Demand

Los Angeles CA, September 30 (Tangible Investments) - by James O Dell - The Gold price dipped to $1,205.80 an ounce in overnight trading, its lowest in nine months, after easing $3.60 or 0.30 percent... [Read More]

China To Celebrate Golden Week As Hong Kong Protests

TANGIBLE INVESTMENTS - Los Angeles - by James O Dell - Gold and Silver extended losses on Monday, with Gold easing a modest 0.16 percent to $1,217.50 an ounce, at the time of this writing,... [Read More]

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