Today’s AM fix was USD 1,161.00, EUR 930.81 and GBP 736.26 per ounce. Yesterday’s AM fix was USD 1,151.25, EUR 927.90 and GBP 726.43 per ounce.
Gold for immediate delivery lost 0.1% to $1,162.60/oz in late morning trade in London. It reached $1,132.16 last Friday, November 7, the lowest since April 2010.
Gold in U.S. Dollars - 10 Years (Thomson Reuters)
Futures trading volume was more than double the average for the past 100 days for this time of day, data compiled by Bloomberg show.
Global bullion demand declined 2.5% from a year earlier to 929.3 metric tons in the third quarter, the lowest since the last quarter of 2009, the London-based World Gold Council said in a report today. Jewelry consumption slipped 4%, while bar and coin purchases dropped 21%, it said.
Although questions are being asked about the Chinese demand data as it appears to only view Chinese demand through the rather narrow prism of Hong Kong exports to China. However, today China is importing huge volumes of gold bullion from all over the world and therefore deliveries on the Shanghai Gold Exchange are a much better benchmark of real Chinese demand.
Holdings in gold exchange traded funds fell 4 tons to 1,620 tons yesterday, remaining at the lowest in more than five years due to poor sentiment and weak hand selling.
Holdings in the world's largest gold backed exchange-traded fund, SPDR Gold Shares, fell 1.8 tonnes to 722.67 tonnes on Wednesday. This is the seventh straight day of declines.
Gold in GBP - YTD 2014 (Thomson Reuters)
A small amount of the ETF liquidations are by investors concerned about the return of the Eurozone debt crisis, geopolitical risk and systemic risk and opting for the safety of allocated and segregated gold bullion coins and bars.
Some support was offered by buying of physical gold bullion in China overnight, dealers told Reuters.