For the first time in history, the Chinese authorities have granted gold import licenses to two foreign banks operating in the country. ANZ and HSBC are the two nominated banks to receive gold import permits. The move is aimed at boosting gold supply into the country.
Wholesale London gold sank against all currencies Thursday morning, falling 1.9% vs. the dollar to hit six-month lows after initially trading flat overnight despite the U.S. Fed finally reducing its $85 billion per month in asset purchases.
What is the true demand for gold? How much is really available in any given year? Does supply and demand really determine the price of gold anymore? The Gold Report called Sprott and John Gravelle, global and Canadian mining leader for PwC, which produced the report for the World Gold Council, to find out.
Analysts cited comments from a U.S. Fed policymaker on a likely reduction next month in the pace of asset purchases for a new one-month low in gold Wednesday morning, with prices eventually bouncing $15 from $1,262 per ounce as world stock markets also slipped.