{"id":4207,"date":"2010-11-18T09:00:28","date_gmt":"2010-11-18T08:00:28","guid":{"rendered":"http:\/\/midastouch.goldgenie.com\/?p=4207"},"modified":"2010-11-18T09:00:28","modified_gmt":"2010-11-18T08:00:28","slug":"gold-steadies-as-private-chinese-demand","status":"publish","type":"post","link":"https:\/\/www.goldgenie.com\/blog\/gold-steadies-as-private-chinese-demand\/","title":{"rendered":"Gold Steadies as Private Chinese Demand"},"content":{"rendered":"

<\/strong>By Adrian Ash<\/p>\n

\nBullionVault<\/a><\/p>\n

\nShows New Record, People’s Bank \u201cLooking\u201d to Grow Reserves<\/strong><\/p>\n

\nTHE PRICE OF GOLD<\/strong> and silver bounced near two-week lows in London and early New York trade on Wednesday,holding below $1340 and $25.75 per ounce respectively.<\/p>\n

\nGlobal stock markets steadied, but Chinese equities ended sharply lower on fresh rumors of imminent interest-rate hikes, while commodity prices capped their 3-day sell-off.<\/p>\n

\nThe Euro fell to a new 6-week low beneath $1.35, however, as the Irish debt crisis made fresh headlines, with the Wall Street Journal reporting talks of a \u20ac100 billion bail-out, and the Irish Star tabloid accusing the government of being \u201cgougers\u201d encouraged by \u201ctheir wanker-banker buddies\u201d.<\/p>\n

\nThe gold price in Euros<\/a> was volatile late Tuesday and overnight Wednesday, twice rallying fast to \u20ac32,000per kilo<\/p>\n

\nAs Irish debt continued to slide, Ireland’s European minister Dick Roche told the BBC that \u201cthere is no reason [for] an IMF or EU-type bailout\u201d.<\/p>\n

\nThe Chinese Securities Journal meantime said the People’s Bank could again hike its key interest rates this Friday to try and quell inflation. Prime minister Wen Jiabao told state TV that Beijing is working to cap \u201cexcessive\u201d price rises.<\/p>\n

\nAn \u201cindustry insider\u201d at Tuesday’s China Mining Congress & Expo told the 21st Century Business Herald that the People’s Bank is looking to grow its gold bullion<\/a> holdings further.<\/p>\n

\n\u201cIncreasing gold reserves will help China increase the safety of its foreign exchange reserves,\u201d added Peng Gang of Renmin’s Economic Reform & Development Institute to the Global Times.<\/p>\n

\n“The government will choose a proper time to start the plan,\u201d reckons Peng, \u201cbut it still depends on the market and the global gold price<\/a>.\u201d<\/p>\n

\nNew data released this morning by the gold-mining backed market-development group the World Gold Council showed private Chinese gold demand leaping between July and Oct. to anew quarterly record of 146 tonnes \u2013 some 14% greater than thethird quarter of 2009 and 11% greater than the record set around Chinese New Year 2010.<\/p>\n

\nNew Year 2011 falls on Feb. 3rd.<\/p>\n

\nChinese consumers \u2013 who have bought more gold in the last two-and-a-half years than the People’s Bank holds altogether in its reported reserves \u2013 accounted for 16% of gold bullion<\/a> demand worldwide during the third quarter.<\/p>\n

\nIndian households remained the No.1buyers, however, taking one ounce in every five sold globally and growing their demand faster than China year-on-year, up by 28%.<\/p>\n

\n\u201cConsidering [the sharp fall] inequities in Asia and weaker base metals, precious metals did relatively well\u201d this morning, says a Hong Kong dealer.<\/p>\n

\n\u201cWhile [Tokyo’s] Tocom were sellers most of the day, Chinese were bargain hunters.\u201d<\/p>\n

\n\u201cAll of the precious metals fared much better than the base complex\u201d in Tuesday’s plunge, says today’s note from Standard Bank. But \u201cprofit-taking [still] gave way to liquidation, with the triggering of stops exacerbating the sell-off.\u201d<\/p>\n

\nIndustrial metals saw \u201cparticipants throwing in the towel amid a bout of mass liquidation,\u201d Standard says.<\/p>\n

\n\u201cCopper suffered a catastrophic sell-off.\u201d
\nAdrian Ash<\/p>\n

\nBullionVault<\/a><\/p>\n

\nGold price chart, no delay<\/a> |\u00a0\u00a0 Buy gold online at live prices<\/a><\/p>\n

\nFormerly City correspondent for The Daily Reckoning in London and head of editorial at the UK’s leading financial advisory for private investors, Adrian Ash<\/strong> is the editor of Gold News<\/a> and head of research at BullionVault<\/a> \u2013 winner of the Queen’s Award for Enterprise Innovation, 2009 and now backed by the mining-sector’s World Gold Council<\/a> research body \u2013 where you can buy gold today<\/a> vaulted in Zurich on $3 spreads and 0.8% dealing fees.<\/p>\n

\n(c) BullionVault<\/a> 2010<\/p>\n

\nPlease Note:<\/strong> This article is to inform your thinking, not lead it. Only you can decide the best place for your money, and any decision you make will put your money at risk. Information or data included here may have already been overtaken by events \u2013 and must be verified elsewhere \u2013 should you choose to act on it.<\/p>\n

\ufeff<\/p>\n","protected":false},"excerpt":{"rendered":"

By Adrian Ash BullionVault Shows New Record, People’s Bank \u201cLooking\u201d to Grow Reserves THE PRICE OF GOLD and silver bounced<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[23],"tags":[123,258,702,1033],"class_list":["post-4207","post","type-post","status-publish","format-standard","hentry","category-gold-news","tag-adrian-ash","tag-bullionvault","tag-gold-news","tag-london-gold-market-report"],"_links":{"self":[{"href":"https:\/\/www.goldgenie.com\/blog\/wp-json\/wp\/v2\/posts\/4207","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.goldgenie.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.goldgenie.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.goldgenie.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.goldgenie.com\/blog\/wp-json\/wp\/v2\/comments?post=4207"}],"version-history":[{"count":0,"href":"https:\/\/www.goldgenie.com\/blog\/wp-json\/wp\/v2\/posts\/4207\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.goldgenie.com\/blog\/wp-json\/wp\/v2\/media?parent=4207"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.goldgenie.com\/blog\/wp-json\/wp\/v2\/categories?post=4207"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.goldgenie.com\/blog\/wp-json\/wp\/v2\/tags?post=4207"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}