Market Update GoldCore 25 June 2013

Market Update GoldCore

Russia, Kazakhstan, Azerbaijan, Kyrgyz Republic, Turkey Buy Gold On Dip

Today’s AM fix was USD 1,285.00, EUR 979.42 and GBP 831.88 per ounce.
Yesterday’s AM fix was USD 1,283.25, EUR 978.98 and GBP 836.21 per ounce.
Gold fell $11.70 or 0.90% yesterday and closed at $1,282.30/oz. Silver slid to a low of $19.453 and finished down 2.14%.

Gold is marginally higher today in most currencies. Market participants continue to assess whether the gold price is vulnerable to more falls or is close to bottoming.

Recent market turmoil and sharp declines in stock and bond markets may have exacerbated gold’s recent weakness as margin calls led to forced selling of a market that was already under pressure.

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Central bank reserve diversification should support gold at these very depressed levels.

“Gold’s bull market is intact and prices will reach a new high as declines in bonds and equities boost demand and investors seek insurance against economic and political risk” Schroder Investment Management Ltd. Told Bloomberg in an interview.

Macroeconomic, geopolitical and monetary uncertainty led to continuing central bank diversification into gold in May. Recent price falls are not deterring many creditor nation central banks from allocating some of their foreign exchange reserves into gold.

Russia, Kazakhstan, Azerbaijan, Kyrgyz Republic and Turkey all increased their gold reserves in May.

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IMF Russia Gold in Mill Fin Troy Oz – (Bloomberg)

Russian holdings, the seventh-largest by country, climbed 6.2 metric tons to 996.2 tons, taking gains this year to 4% after expanding by 8.5% in 2012, International Monetary Fund data show.

The People’s Bank of China does not declare their gold reserves to the IMF and is likely to be quietly accumulating gold reserves which is another important strong plank of support for gold.

This central bank demand is set to continue as macroeconomic, geopolitical and monetary uncertainty is here to stay and indeed may escalate substantially in the coming months as we move into the next phase of the global debt crisis.

News From Around The World

Russia, Kazakhstan Join Turkey in Raising Gold Holdings in May   Bloomberg

BIS fears fresh bank crisis from global bond spike   The Telegraph

BIS warns banks dangerously exposed to $10 trillion bond market crash, so buy gold   GoldSeek

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