Thursday, January 12, 2012

After holiday pullback, premiums on gold rising again as sales increase in asia

After gold prices fell nearly 30% in the last part of 2011, the pullback appears to now be complete as premiums for purchasing the yellow metal are now increasing over in Asia, as sales begin to build once again in early January.

Demand in Asia continues to be strong. China remains the world’s largest producer of mined gold.

Premiums for gold bullion bars in Asia are rising again and are at their highest since October in Hong Kong and Singapore. Premiums are at $2.15/oz in Hong Kong and $1.65/oz in Singapore. Bullion’s strength was also attributed to the euro’s 16 month low, with Fitch warning the ECB to purchase assets to try to stabilize the euro.

Spot gold was up 0.6 percent at $1,650.34 an ounce at 1009 GMT, having earlier touched a one-month high at $1,652.30. U.S. gold futures for February delivery were up $12.60 an ounce at $1,652.20.  - Zerohedge


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