Seeking Alpha

Gold slips amid slow Chinese demand

  • Chinese net gold imports from key conduit Hong Kong fell to 67.04 tons in April, down from 85.13 tons in March, and the lowest level since February 2013. A gold trader in Shanghai notes Chinese banks are flush with the metal, having imported a record 1.16K tons in 2013.
  • As China slows though, Morgan Stanley says policy changes in India could be supportive for gold, pointing to an easing of import rules by the country's central bank. The support is likely to be modest, says Morgan, as much of the 
    "lost" demand from tighter rules was being met by unofficial imports. "The effective rise in gold imports will be much lower on a net basis."
  • Gold is off 1% in morning action to about its lowest level since early February at $1,278 per ounce. GLD -1.3%
  • ETFs: GLD, IAU, SGOL, UGL, DGP, GLL, UGLD, DZZ, DGL, DGZ, DGLD, AGOL, OUNZ, UBG, GLDS, GLDL
Comments (4)
  • David at Imperial Beach
    , contributor
    Comments (3670) | Send Message
     
    The Central Bank of Russia is likely to step up its buying to sop up the 18.09 tons.
    27 May, 09:37 AM Reply Like
  • 6151621
    , contributor
    Comments (1174) | Send Message
     
    The link to FT says weak China demand shouldn't be good for the metal. This is logical and yet if it were valid why was strong demand last year not supportive of the price. Gold is more complex than a couple of simple talking points: China, FED, Ukraine, rates, inflation.

     

    How about gold down on heavy selling pressure?! If the pressure continues we'll go lower and why won't matter.
    27 May, 10:04 AM Reply Like
  • ltsgt1
    , contributor
    Comments (1394) | Send Message
     
    The fed is laundering US Treasury via Belgium to continue its QE to infinity. The fed is cornered and desperate. The stock markets must go up, the interest rates must be near zero, the PMs must be slammed at all cost.

     

    If the US is a sick patient, the doctor is smacking the patient's face to make him look flush and healthy.
    27 May, 11:11 AM Reply Like
  • rubber duck
    , contributor
    Comments (193) | Send Message
     
    The reality is that physical demand does not push the paper price or gold would not have fallen 30% last year against an all time high in physical demand. This disconnect will be rectified shortly. Look at the current prices as a gift for those who are considering buying the physical.
    27 May, 03:11 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Tools
Find the right ETFs for your portfolio:
Seeking Alpha's new ETF Hub
ETF Investment Guide:
Table of Contents | One Page Summary
Read about different ETF Asset Classes:
ETF Selector

Next headline on your portfolio:

|