Gold bullion coins import ban continues in India

Today’s AM fix was USD 1,333.00, EUR 968.68 and GBP 825.13 per ounce. Yesterday’s AM fix was USD 1,311.75, EUR 959.51 and GBP 813.24 per ounce.

Gold climbed $25.00 or 1.09% yesterday, closing at $1,340.20/oz. Silver surged $0.49 or 2.21% closing at $22.68. Platinum rose $12.10 or 0% to $1,447.80/oz, while palladium climbed $2.65 or 0.4% to $751.90/oz.

Gold was trading near its highest in four weeks on Wednesday. As expected, the poor U.S. jobs data led to safe haven buying. Contrary to the constant silly 'taper' talk, it appears more and more likely by the day that the Federal Reserve will continue money printing and may even increase their $85 billion a month QE in the coming months. 

Gold in US Dollars, 1 Year - (Bloomberg

Gold surged 2% after the poor jobs number to $1,344.46/oz - the highest since September 20.

The U.S. employment number surprised on the downside showing less jobs in September being added than in August, and there are indications that the Chinese economy is slowing down also.

Holdings in the world's largest gold ETF, SPDR Gold Trust, surged 0.8% or 6.6 tonnes to 878.32 metric tons yesterday, the first increase seen since September 19th according to Bloomberg data.

Physical demand in China and India remains robust - particularly in India ahead of the festival season.

Indian gold premiums remain near record levels due to rising domestic demand and scant supplies as exporters get priority over shipments. The government's misguided attempt to correct the current account balance by attacking gold buying and ownership has completely distorted the market leading to a lack of gold coins and bars which is creating panic gold buying of any gold available.

Finance Minister, Chidambaram today ruled out the possibility of lifting a ban on import of gold coins and asked banks to strictly follow guidelines restricting inward shipments of gold.

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