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Barclays said in a weekly report that release of FOMC minutes would have impact on the market. Tapering may conclude in October while but not confident enough to provide firm guidance on the expected timing of any rat..

13 Jul 2014

LONDON (Commodity Online): Gold gain strength on a weaker dollar last week while inflows into exchange traded funds (ETFs) remain positive.

Barclays said in a weekly report that release of FOMC minutes would have impact on the market. Tapering may conclude in October while but not confident enough to provide firm guidance on the expected timing of any rate hike.

"Gold ETP flows have been largely positive recently,and although they may have lent support to prices, we do not think this move is sustainable in the long term. Net speculative positioning in COMEX gold has continued to rise in recent weeks, with last week capping off a one-month streak of increasing net speculative positioning. In summary, investor demand has been strong lately, but we would caution against interpreting this as a longer-term change in investor sentiment."

Gold demand is expected to increase this year although not the same extent as last due when opportunistic buying on price dips resulted in larger buying activity. India's gold bar premiums may rise as government surprised market expectations of a cut in gold import duty by continuing to maintain status quo. This could lead to rise in bar premiums from current levels after witnessing a fall of $20-30 per ounce recently on hopes of duty cut.

The World Gold Council expects China's gold demand to increase by 25% over the next four years (after a slight correction this year) due to a growing middle class. 


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COMMENTS (1)
AF51
13 Jul 2014
Reliability of Barclays is not to be demonstrated.
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