Gold sharply extended its gains for a second day on Thursday and more than made up the losses suffered earlier in the week. Though the metal was slightly lower at the time of this writing on Friday, it is still holding in the positive territory for the week and thus remains on course to post its second two-week rally since the second week of August.
The Oct. 17 deadline to raise the $16.7 trillion debt limit is approaching fast and concerns about an unprecedented default have been expressed by well-known and politically connected investors including Warren Buffett.
s we enter the summer, we want to know who is right, George Soros or the Chinese housewives who have been stocking up on gold. In today’s essay we will focus not only on gold itself, but also on the most versatile commodity — crude oil.
India’s Central Bank, The Reserve Bank of India, seeks to restrict bullion imports because of the strain it is putting on their current account deficit. India is the largest importer of gold and more than half of it is used for jewelry.
Gold imports into mainland China from Hong Kong almost doubled to new high in 2012 as Chinese people continue to play catch up in terms of gold ownership. The Chinese were forbidden from owning gold for more than 50 years.
Gold is relatively unchanged on Tuesday as investors await the US presidential election results, and remain cautious with news of Greece’s two-day general strike against the new austerity package plus the upcoming Chinese leadership transition.