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Gold: a volatile and changeable market ahead

The current low gold prices will encourage further buying of physical metal, but expect the overall picture to remain volatile.

The gold price is now just about on support in the Technical picture. The precipitous fall was in the absence of selling from the U.S.  Prices at these levels will encourage physical buying from investors worldwide as well as central banks. We expect the next month to see a volatile and very changeable market that may well confuse investors in precious metals.

The situation in India with government blocking imports and looking into ways to ‘harness’ privately owned gold gives a fascinating picture into what can happen to gold when a nation is under pressure on its Balance of Payments, which India is. It would be accurate to say that the Indian government is manipulating the gold market tremendously, but we do recommend that investors take a close look at events there to see what can happen to your gold when government gets involved.

We do not believe this to be the only country to contemplate the road they are now walking there. Ostensibly the government has blocked gold imports to lessen the Current Account Deficit. They have been exploring ways to get privately held gold into the banks over whom the government exercises control, through the “Save Gold Campaign”. 

As we reported yesterday, they have now started gathering statistics on the gold held in Temples and no doubt to get an initial reaction to the probability of government “harnessing” this gold to support foreign loan requests. To date gold dealers and commentators have been careful to say little about the possibility/probability of confiscating gold or other ways of putting it under government control. But we see clearly now the exploration of the avenues to achieve this are being explored!  

The SPDR and Gold Trust gold ETF holdings were unchanged on Thursday. The total of the SPDR gold ETF holdings is at 917.126 tonnes while the holding of the Gold Trust remains at 177.56 tonnes, together totalling 1,094.686 tonnes. 

The silver price despite stronger fundamentals is following the gold price.                       

Global Gold Price (1 ounce)

 

Today

1 day ago

Swiss Franc

Sf1,224.39

Sf1,250.30

US Dollar

$1,314.00

$1,343.40

EU Euro

€988.90

€1,010.65

India Rupee

Rs.83,320.74

Rs.85,708.92

 

 
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JSE ALSI52,620-0.59%2015-05-28 07:54 +0000
Hang Seng27,391-2.46%2015-05-28 07:55 +0000
Nikkei20,5510.39%2015-05-28 07:55 +0000
NASDAQ5,1071.47%2015-05-28 07:55 +0000
Dow Jones close18,0422015-05-28 07:53 +0000
S&P 500 close2,1042015-05-28 07:53 +0000
Gold1,189.260.10%2015-05-28 07:53 +0000
Silver16.710.12%2015-05-28 07:53 +0000
Platinum1,123.080.41%2015-05-28 07:53 +0000
Palladium786.950.07%2015-05-28 07:53 +0000
Gold ZAR/oz14,312.150.14%2015-05-28 07:53 +0000
Brent Crude62.500.34%2015-05-28 07:53 +0000
USD / Euro0.914-0.33%2015-05-28 07:53 +0000
CAD / USD0.8032015-05-28 07:54 +0000
ZAR / USD0.0830.11%2015-05-28 07:53 +0000
UAD / USD0.768-0.62%2015-05-28 07:54 +0000

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