Good Morning Vietnam.........relatively quiet night for gold, as lower consumer confidence figures in the US were offset by a relatively strong Richmond Fed manufacturing report, and an above expectation rise in the Case Shiller Housing (up over 13% y.o.y) Overall, gold pulled back marginally and is now trading at USD $1342. Interesting news overnight was the report from the Vietnamese Director of the Foreign Exchange Department stating that the central bank is looking at purchasing gold bullion as a way of increasing FOREX reserves, a trend that has been in place across many emerging market nations for the last couple of years. We also had reports that profits for Chinese jeweller Chow Tai Fook surged over 90% y.o.y on the back of the Chinese gold rush, whilst at the same time, gold jewellery imports into America dropped by the most on record. Another sign of the flow of real wealth from west to east!
Physical demand for gold is still quite high, especially those coming from China. Perhaps when the Chinese Lunar New Year holidays begin in late Jan 2014, early Feb, physical gold demand could increase further.
Spot on - physical demand will top 1,000 tonnes this year - and thats just the official numbers being shipped through HK. Doesn't account for business people/tourists from Shanghai, Shenzen, Beijing etc who head to HK and buy jewellery/bullion bars and fly them home. Today, most will judge 2013 is the year the gold bull market died, but history will judge it as the year China took over the market.