Gold market turning calmer
Despite all the recent price swings, one analyst notes that emerging-market buyers are getting back into the precious metal and that gold ETF redemptions have been on the light side.
Sept. 28, 2011, 5:35 a.m. EDT
Calm returns to gold market after big swings
Analysts see emerging-market demand increasing
By Simon Kennedy, MarketWatch
LONDON (MarketWatch) — Gold and silver futures held broadly steady Wednesday as traders remained on the sidelines following massive swings for both metals in recent days.
Gold for December delivery edged up $3.90, or 0.2%, to $1,656.40 an ounce and the December silver contract rose 26 cents, or 0.8%, to $31.80 an ounce.
The relatively subdued moves followed big losses for both gold and silver last week, including the gold contract’s worst day in five years on Friday, as traders sold precious metals to raise cash. The losses were followed by a rebound Tuesday amid hopes for progress over the European sovereign debt crisis.
Shamin Mansoor, an analyst at Daniel Stewart, said that despite the sharp drop for gold in the last week, redemptions from gold exchange-traded funds have been light. On top of that, lower prices also appear to be bringing back emerging-market buyers, Mansoor said, in a note to clients.
Commerzbank analysts agreed that the price fall is driving increased buying of physical gold.
“In India especially, where the festival season is about to begin, demand is reported to be high and some local traders are already speaking of supply bottlenecks,” Eugen Weinberg, Commerzbank’s head of commodity research, said in a note.
Full article: http://www.marketwatch.com/story/calm-returns-to-gold-market-after-big-swings-2011-09-28?dist=beforebell
Gold is $1,581/oz today. When it hits $2,000, it will be up 26.5%. Let's see how long that takes. - De 3/11/2013 - ANSWER: 7 Years, 5 Months
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