Passa ai contenuti principali

GOLD - Central Bank Gold Demand Won't End Soon As RBI Expected To Buy 1.5 Million Ounces This Year - Analysts | Kitco News

Central Bank Gold Demand Won't End Soon As RBI Expected To Buy 1.5 Million Ounces This Year - Analysts | Kitco News


Central Bank Gold Demand Won't End Soon As RBI Expected To Buy 1.5 Million Ounces This Year - Analysts

(Kitco News) -Generalist investors continue to shun the gold market to focus on record equity prices, but there is still one sector that is interested in the precious metal.

Central bank demand remains an essential factor for the gold market and their appetite is not close to being sated anytime soon, according to some analysts.

Speculation is growing that India's central bank will add to its gold reserves this year. In a recent report, Howie Lee, an economist at Oversea-Chinese Banking Corp. said that he estimates that the Reserve Bank of India (RBI) could purchase 46.7 tonnes of gold in 2019, or about 1.5 million ounces.

His comments come as India sees its gold reserves grow to record levels. According to data from the International Monetary Fund, so far this year India's central bank bought 8.2 tonnes of gold, this comes after the RBI added a total of 42.3 tonnes of gold in 2018. The RBI currently holds 608.7 tonnes of gold, representing less than 7% of its official foreign exchange reserves.

India is joining the ranks of China and Russia, which have been significant buyers of gold so far this year. Analysts say that official gold demand is increasing as countries attempt to diversify their reserves away from the U.S. dollar. The latest data from the IMF shows that China bought 21.8 tonnes of gold; meanwhile, Russia has bought 37.4 tonnes of gold.

"There seems to be some form of pattern, not just the RBI, that central banks tend to increase gold reserves when the global macroeconomic environment is uncertain," OCBC's Lee said. "It's no coincidence that one of the biggest buyers of gold in recent months was China, which is in the midst of trade tensions with the U.S. and may have been seeking to diversify its trillions of dollar reserves."

Daniel Ghali, commodity strategist at TD Securities, said that central bank gold demand has provided valuable support in the gold market. Currently, the gold market is trying to bounce off its recent four-month low. June gold futures last traded at $1,278.30 an ounce, up 0.40% on the day.

Ghali explained that portfolio managers have a little bit more confidence in the gold market when they see growing demand from central banks.

He added that investors shouldn't expect to see an end to central bank buying anytime soon.

"These themes in the gold market play out over months and years," he said. "Last year we saw central bank's buy gold at the fastest pace since the 1970s. I think that is an indication that their appetite is only starting to grow."

Kinesis combines the best of the old world and the new, bringing one of the most stable and secure forms of currency, gold and silver, to the consumer, in digital form.

Commenti

Posta un commento

Post popolari in questo blog

Charting the World Economy: The U.S. Jobs Market Is On Fire - Bloomberg

Charting the World Economy: The U.S. Jobs Market Is On Fire - Bloomberg https://www.bloomberg.com/news/articles/2019-12-06/charting-the-world-economy-the-u-s-jobs-market-is-on-fire Charting the World Economy: The U.S. Jobs Market Is On Fire Zoe Schneeweiss Explore what's moving the global economy in the new season of the Stephanomics podcast. Subscribe via  Apple Podcast , Spotify or  Pocket Cast . The last U.S. payrolls report of the decade was a doozy, beating expectations and doing its bit to keep the consumer in good health heading into 2020. That's good news given the various pressures still weighing on global growth. Here's some of the charts that appeared on Bloomberg this week, offering a pictorial insight into the latest developments in the global economy. U.S. Advertisement Scroll to continue with content ...
Posta un commento
Continua a leggere

Another Paradox: Consumer Spending Expectations Surge, Despite Dismal Income, Earnings

Call it the latest economic paradox. Despite widespread stories of doom and gloom about the state of US consumer finances once the fiscal stimulus bill expires on Dec 31, the latest NY Fed survey of consumer expectations unexpectedly shows that US consumers have little intention of slowing down their spending. In fact, and very paradoxically,  despite depressed and flat income and earnings growth expectations,  with median one-year ahead expected earnings growth at 2.0% for fifth consecutive month and expected income growth barely little changed at 2.14% ... ...  consumers' 1-year ahead  spending growth expectations  jumped to 3.73% over the next 12 months in November  - the highest level in more than four years, not only up from the 3.06% in the previous month but a whopping 33% more than the 2.8% reported last November,  making this the biggest Y/Y increase in expected spending in series history. This bizarre increase took place even as labor market signals were mixed: although t...
Posta un commento
Continua a leggere

China Exports, Imports Fall Sequentially, Adding To Slowdown Fears

China's exports rose 19.3% y/y in July, missing the median consensus expectation of 20% (ranging from 15.4% to 30.7%), and declining sequentially -0.3% in July after rising +5.7% in June. Imports also rose less than expected, up 28.1% Y/Y in July, below the 33.3% median expectation, and fell 6.4% sequentially after surging +11.3% M/M in June. As a result this disproportional slowdown in imports vs exports, China's monthly trade surplus actually rose to $56.6bn in July, slightly better than the $53.3BN consensus, and up from $51.5BN in June due to the bigger miss in imports. ASEAN was China's biggest trading partner in July, followed by the Europe Union and the U.S., customs data showed. China's exports to the US grew 13.4% in July from a year ago, while imports from America rose 25.6%, leaving a trade surplus of $35.4 billion in the month. Some more details: By geography:  Export growth slowed across major export destinations, and exports to major DMs continued to be a ...
Posta un commento
Continua a leggere