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Gold bounces on strong physical demand. Stock shortages reported.
|
As at Friday 26th April 2013 ($USD) |
Gold |
Silver |
|
Close this week (26th April) |
$1,471.50 |
$24.02 |
|
Close previous report on Monday 15th April |
$1,395.00 |
$23.54 |
|
Gain/ <Loss> % |
+5.45% |
+2.04% |
|
High Close for the week |
$1,471.50 |
$24.02 |
|
Low Close for the week |
$1,408.00 |
$22.91 |
Less than two weeks ago we saw frenetic selling where Gold touched US$1,350, before recovering to around US$1,400, but over the last few days of this week we have seen strong buying to reach US$1,471 at close of the week.
In our last Market News Update we talked about WHY the sell-off; where there was the combination of Investment Managers and the media spruiking that the long standing bull market was over and we had entered into a downward trend for precious metals. Much of this focus was on activity in the futures market and the views of Investment Managers on their speculative short positions while ignoring the physical market.
At prices around US$1,400 we have seen significant demand for physical Gold, to such an extent that many dealers, particularly in Hong Kong and USA were running out of physical stock.
Physical stocks reported to be low.
During the week Financial Times quotes reported that experienced Hong Kong dealers were citing the biggest surge in demand for physical Gold for over 30 years.
Wall Street Journal also reported that Indian demand was such that they were paying record premiums just to get stock.
Where to next?
Most are predicting some further upside this week. For the medium term a recent price poll by Reuters predicted an average price for 2013 of US$1,627 for Gold and US$30.02 for Silver. If correct this represents an increase of 11% for Gold and 25% for Silver on current prices.
Silver is attracting attention with many of our clients looking to balance their portfolio with purchasing Silver at these levels.
This coming week will also be interesting on the news front with a number of Central Bank meetings scheduled along with the US employment report that can have an impact on pricing.
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Please call us at anytime if you wish to discuss any topic or questions you may have.
Check out our Charts at www.ausmint.com
DISCLAIMER: Australia Mint Bullion & Coin does not provide financial advice and does not employ financial advisors. Any opinions expressed within news articles or market updates are not intended as recommendations. If you are looking for investment advice, please seek independent, specific advice regarding your personal financial situation from a qualified professional.
