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Traders Split on Outlook as Asian Jewelers Buy
Be prepared for the next great transfer of wealth. Buy physical silver and storable food.
truthingold.com / By truthing / April 19, 2013, 07:19
Gold traders are divided on whether bullion will extend declines after the biggest plunge in three decades generated buying from investors and jewelers.
Fifteen analysts surveyed expect prices to rise next week, 14 were bearish and a further five were neutral. Gold tumbled 13 percent in the two sessions through April 15, the biggest drop in 33 years, on concern European governments would follow Cyprus in selling off reserves, while an unanticipated slowdown in Chinese growth sparked declines across commodities. In the past three days, bullion has rebounded about 2 percent on the Comex in New York.
Asian buyers have stepped up bullion purchases since prices fell, with imports by India, the world’s biggest consumer, expected to jump by 36 percent through June compared with a year earlier, the Bombay Bullion Association Ltd. said. Australia’s Perth Mint said April 17 that sales doubled from last week. Hedge funds have reduced bets on higher prices by 72 percent since October while Goldman Sachs Group Inc. and Societe Generale SA predicted declines.
“Clearly a lot of psychological damage has been done, as well as the practical damage of margin calls on leveraged positions and collateralized gold so we should not expect a recovery as quick as the decline,” said Adrian Day, who manages about $160 million of assets as president of Adrian Day Asset Management in Annapolis, Maryland. “The drop seemed very overdone to me.”
Thanks to BrotherJohnF
2013-04-20 06:30:39
Source: http://silveristhenew.com/2013/04/20/traders-split-on-outlook-as-asian-jewelers-buy/
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