Commerzbank: Indian Gold Buying Eases; Chinese Demand Strong
The latest data from the world’s two largest gold-buyingnations points to soft demand in India but strong buying in China, points outCommerzbank. Analysts cite data from the country’s Ministry of Finance showingthat gold imports plunged by 42% year-on-year to 38.8 tonnes in October. “Theconsumer restraint was chiefly due to the steep rise in gold prices in Indianrupees beforehand,” Commerzbank says. “Bullion dealers and jewelers are runningnumerous special offers in a bid to revive gold demand in India during theDhanteras and Diwali festivals that are taking place this week.” Meanwhile,analysts cite data from the China Gold Association showing that the country’sgold demand grew by 5.1% year-on-year to 850 tonnes in the first threequarters, with the organization attributing this to falling gold prices, weakstock markets, exchange-rate moves and the China-U.S. trade tensions. Theorganization’s data for gold demand is significantly higher than that compiledby the World Gold Council, Commerzbank points out. Meanwhile, China’s goldproduction decreased by 7.5% to 290 tonnes from January to September. “China isfilling the gap with imports - for example, from Hong Kong and Switzerland -and will also remain a major gold importer in the future,” Commerzbank says.
By Allen Sykoraof Kitco News; asykora@kitco.com
INTL FCStone: Gold Must Break$1,240-$1,245 To Spur Fund Buying
Tuesday November 06, 2018 08:51
Gold and silver may fare better inNovember, but gold needs to clear resistance around $1,240 to $1,245 an ounceto attract more fund buying, says INTL FCStone. “A weaker dollar, perhapssetting in by month end on the back of a possible Trump-Xi breakthrough [onU.S.-China trade relations] could give both complexes a late-month lift...,” INTLFCStone says in its monthly commodities outlook. “We are mildly constructive onplatinum, but see palladium as being overdone at current levels on account ofcar sales slowing in both the U.S. and Chinese markets. We said the same thinglast month and were proven wrong, but would stick to the narrative going intoNovember.”
By Allen SykoraFor Kitco News
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asykora@kitco.com Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.