Non-ferrous

Base Metals

Rare Earth

Scrap Metals

Minor Metals

Precious Metals

Ferrous Metals

Iron Ore Index Iron Ore Price Finished Steel Coke Coal Pig Iron Silicon Steel

New Energy

Solar Lithium Cobalt Lithium Battery Cathode Precursor and Material Anode Materials Artificial Graphite Diaphragm Electrolyte Other Materials Chemical Compound Lithium-ion Battery Used Lithium-ion Battery Sodium-ion Battery Hydrogen Energy Energy Storage

Price Center DatabasePro Reports Events Car Insight

Home / Metal News / Gold Prices Struggle as China Demand Ebbs, 'Geopolitics to Beat Fundamentals' in 2015

Gold Prices Struggle as China Demand Ebbs, 'Geopolitics to Beat Fundamentals' in 2015

Feb 11, 2015 16:40

Source:SMM

Gold prices slipped in London trade on Tuesday, giving back an earlier 1% rise from last week's finish as Eurozone stock markets rose and commodities fell.

Author: Paul Ploumis11 Feb 2015 Last updated at 00:19:45 GMT

EDGWARE (Scrap Monster): Gold prices slipped in London trade on Tuesday, giving back an earlier 1% rise from last week's finish as Eurozone stock markets rose and commodities fell.

Major government bond prices retreated, nudging interest rates higher.

Ten-year US Treasury yields crept higher to reach 2.0% – an 18-month low when hit in January – for the first time in a month.

The overnight lull in gold prices meant "Chinese demand came right on cue at the open once again," says one Asian dealing desk, "although not as strong as Monday."

"The recent $30-decline in gold prices," says a note from Swiss investment and London bullion bank UBS, "[is] perhaps encouraging some last-minute buying out of China for the Lunar New Year festivities."

But more broadly, "India and China are not buying right now, our books are not full," said Frederic Panizzuti, CEO in Dubai for Swiss refiner MKS at the annual Richcomm Commodities Outlook on Sunday.

"We expect to see some buying from March and April onwards," said Panizzuti – winner in 2014 of the London Bullion Market Association's gold price forecasting contest.

Crucially for 2015 prices, he added, "We have put fundamentals aside in our gold outlook.

"[Because] geopolitics, the perception of risk and even emotional risk from investors, are the main drivers this year."

Panizzutti is the second most bullish gold forecasters in the new 2015 LBMA survey, but only with an annual average prediction of $1292 per ounce – a mere 2% rise from last year.

Investment gold holdings needed to back shares in the largest exchange-traded gold fund, the SPDR Gold Trust (NYSEArca:GLD), were unchanged Monday at 4-month highs, some 10% larger from the New Year's half-decade low.

Silver bullion held to back shares in the iShares Silver Trust (NYSEArca:SLV) was also unchanged near 1-year lows, down almost 9% from November's three-year high.

"With China trade likely to be quiet into the Lunar New Year," says a note from Standard Chartered – now a market-making member of the London bullion market – "gold may struggle to recover lost ground this week."

Friday's US jobs data, StanChart says, added "to views that the Fed tightening cycle could now start earlier than current consensus...[outweighing] the recent focus on currency volatility, Euro-area concerns, rate cuts and extra QE outside the US."

Gold priced in the Dollar today tracked back down to $1234 per ounce, unchanged from last Friday's 4-week closing low.

The Euro meantime flicked around $1.13 to the US currency, a 13-year low when hit amid last month's Swiss peg and Eurozone quantitative easing news.

That held Euro gold prices at €1095 per ounce, some 6% below late-January's 21-month high of two week's ago.

Courtesy: www.bullionvault.com

gold price

China gold demand

For queries, please contact William Gu at williamgu@smm.cn

For more information on how to access our research reports, please email service.en@smm.cn

There has been some reluctance toward gold from Chinese market participants but this may change if the metal maintains its strength, said the analysts at UBS.

Mar 1, 2016 16:11

Industry

Survey Respondents Upbeat On Gold Despite Price Pullback

Despite higher volatility and lower prices in the gold market, retail investors and market professionals remain optimistic that prices will continue to make gains in the near term.

Feb 29, 2016 19:43

Industry

Gold Imports From China & India Mixed; Expect Demand To Rise - Capital Economics

According to the latest data, China’s gold imports from Hong Kong rose in September for the third consecutive month, and analysts from one U.K.-based research firm expect this trend to continue.

Oct 28, 2015 17:32

Industry

Chinese Data Point Toward Further Gold Purchases During August

Chinese data on foreign-exchange reserves suggest that the country’s central bank bought another 16 tonnes of gold during August, analysts report.

Sep 9, 2015 15:18

Industry

Indian gold bar imports see 9% increase in July

According to import statistics released by the GJEPC of India, the country's gold bar imports increased by over 9% in July this year.

Aug 25, 2015 10:58

Industry

Gold Optimism Growing As Main Street, Wall Street Majority See Higher Prices Next Week

A good majority among retail investors and market professionals believe that gold prices may see further gains during next week.

Aug 24, 2015 17:35

Industry

[Au Demand] Chinese Gold demand may bounce back in H2 2015 after June drop

Although mainland China’s gold imports from Hong Kong fell in June, analysts expect imports from the Far East to increase in the coming months.

Jul 28, 2015 15:39

Industry

[Au Demand] China Gold Demand Cools

Gold bullion recovered a $10 loss in London on Monday to trade just shy of $1100 per ounce – a new 5-year low when first hit last week.

Jul 28, 2015 13:51

Industry

[Au Price] Expect To See More Gloom In Gold Next Week

According to one analyst, a dark mood is hanging over the gold market.

Jul 20, 2015 17:08

Industry

It is Time to Hold More Cash and Buy Gold

Gold is a regarded as a hedge against market turbulence by Bank of America who, in a note to clients, advised holding gold and paper currency at this time.

May 21, 2015 11:30

Industry

SMM Events & Webinars

All

Apr
09
- NET ZERO MEA - Solar & Energy Storage
  Apr 09 - 10,2025
  MARRIOTT HOTEL AL JADDAF, DUBAI, UAE
Apr
09
- 2025 SMM (20th) Lead & Zinc Conference and Industry Expo
  Apr 09 - 11,2025
  To promote the sustainable development of lead and zinc industry to build a high-end, professional, pragmatic exchange p
  Nanjing · Jiangsu ·China
Apr
16
- CLNB 2025 (10th) China International New Energy Industry Expo
  Apr 16 - 18,2025
  Suzhou International Expo Center, Jiangsu, China

Gold Prices Struggle as China Demand Ebbs, 'Geopolitics to Beat Fundamentals' in 2015

SMM Events & Webinars

NET ZERO MEA - Solar & Energy Storage

2025 SMM (20th) Lead & Zinc Conference and Industry Expo

CLNB 2025 (10th) China International New Energy Industry Expo