By Kitco News
Wednesday May 25, 2016 15:36
(Kitco News) - Famed newsletter writer Dennis Gartman wrote on Wednesday, quoting a Platts report, that net exports of gold out of Switzerland reached a three-month high in April of 147.8 metric tonnes -- according to data from Swiss customs.
Gartman noted that Switzerland is a very important focal point for the gold trade although its importance has waned over the years, and interest has shifted towards Asia.
“Net imports into Switzerland were 203.1 metric tonnes for a net surplus inflow of 55.3 metric of gold in the country for April. At first blush this would seem to be supportive of gold, however, this 53.3 metric tonnes of gold is the lowest surplus so far this year and compares rather unfavorably to 109.3 metric tonnes in March,” Gartman says in today’s installment of The Gartman Letter.
He added that Russia, rather, was a material buyer of gold, adding 16.24 tonnes of the precious metal to its official reserves in April, bringing total holdings to 1,476.7 tonnes. “China too was a buyer of gold, net, in April, adding 10.9 tonnes to its reserves, bringing the total to 1,808 tonnes,” Gartman writes.
Gartman also mentions that Venezuela sold 34.2 tonnes of gold in February and another 8.5 tonnes in March. “[T]he situation there has become frantic and as gold is one of the few sources of hard currency this collapsing country has available to it. Venezuela now has only 238.7 tonnes of gold on hand.”
On the topic of the gold price, Gartman writes he does get the sense that support for dollar denominated gold is “beginning to show up just below $1, 225.”
Gold prices ended Wednesday’s U.S. trading session at a seven-week low. The recent rally in the U.S. dollar index remains a bearish outside market force for the precious metals markets. June Comex gold futures settled the day down $5.40 an ounce at $1,223.80.
By Daniela Cambone of Kitco News;