China Gold Rush Continues – World’s Largest Jeweller Sees 49% Jump In Sales

Today’s AM fix was USD 1,250.75, EUR 923.88 and GBP 773.69 per ounce.
Yesterday’s AM fix was USD 1,231.75, EUR 911.60 and GBP 760.57 per ounce.

Gold rose $5.60 or 0.45% yesterday, closing at $1,248.80/oz. Silver climbed $0.15 or 0.25% closing at $20.02/oz. Platinum rose $3.19 or 0.2% to $1,380.99/oz, while palladium inched up $6.11 or 0.9% to $712.52/oz.

Gold in U.S. Dollars, 3 Days – (Bloomberg)

Gold was trading near a one-week high today and is turning higher for the week, due to short-covering gains and the market questioning the Iran deal.

Comex had to suspend gold futures trading yesterday again – again for 20 seconds due to a massive sell order that led to just a $10 price fall.

Comex trading was halted for December gold futures at 6:02:24 a.m. GMT yesterday, Damon Leavell, a CME Group Inc. spokesman in New York, said in an e-mail. This led to gold falling to a 4 and a ½ month low near $1,225 an ounce before recovering from the massive sell order. Questions regarding gold manipulation continue to be asked including by Bloomberg (see link) overnight.

While the focus of the Bloomberg story is regarding possible rigging on the London AM Fix, regulators in the U.S. including the CFTC may need to reopen their investigation into manipulation of the gold market after the highly irregular trading on the COMEX last Wednesday and again early on Monday morning.

Without the massive sell order that shut down the COMEX for 20 seconds, gold prices would have been higher yesterday. That one trade pushed gold prices lower as European markets opened up and created very significant short term negative sentiment towards gold.  It led to dozens of headlines that flew around the world which said that gold prices had fallen due to the Iran deal.

IN CHINA, THE GOLD RUSH CONTINUES as Chinese people buy jewellery, coins and bars as a store of wealth to protect from inflation.

The world’s largest jewellery group, Chow Tai Fook Jewellery Group Ltd. , established in 1929, saw sales jumped 49% during the first half of 2013.

Gold in U.S. Dollars, 24 Hours – (Bloomberg)

It posted a first-half profit that beat analyst estimates as the drop in gold prices drove strong Chinese demand for gold. Net income almost doubled to HK$3.5 billion ($451.5 million) from a year earlier for the six months ended September 30, it said in a statement to Hong Kong’s stock exchange today.

Jewelers in China and throughout Asia are benefiting from continuing robust demand for gold. This has led Chow Tai Fook and jewellery outlets having to buy gold bars and rebuild gold inventories.

Retail sales of gold tripled across China after the peculiar “flash crash” of April 15-16 when gold fell 10% in two days. Demand has remained robust and the recent weakness has seen continued demand.

Founded in 1929 in the southern Chinese city of Guangzhou, the jeweller was named after its founder Chow Chi Yuen. “Tai Fook” means “big blessing” in Chinese.

Markets await the release of a batch of U.S. economic reports, including  U.S. housing starts and building permits for October, along with two home-price indexes and consumer-confidence numbers.

GoldCore were interviewed over the weekend about the huge increase in Chinese demand for gold in recent years and how it is sustainable. The video can be watched here:
VIDEO: “China’s Insatiable Demand For GOLD Causing PARADIGM SHIFT”

Gold Prices / Fixes / Rates / Vols – (Bloomberg)

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