Morning Gold Market Report While Gold prices remained under the weight of fear of the Feds next move earlier this week a shift in headline flow was seen in favor of the bull camp overnight. With an Indian Congress leader calling for a reduction in the gold import duty directly ahead of an upcoming election, one has to think that politicians will not want to anger voters and therefore part of the gains this morning might be the result of improved Indian gold import demand hopes. Not surprisingly, the Indian Finance Minister spoke up in favor of keeping the import duty in place until Indian officials could confirm an improvement in Indian current account deficit figures. Another issue that might provide some support to gold from the overnight news flow is news that two Russian gold miners saw lower gold production and or expect to see gold production decline in 2014. Russias Nord gold expects 2014 production to 4,000 to 34,000 ounces lower in 2014 relative to 2013, while Russian Miner Petropavlovsk also expects to see output reduced by roughly 116,000 ounces on a year over year basis. Apparently Russian miners are reducing production due to the fact that gold prices in 2014 are sitting roughly 30% below the levels seen at the start of 2013. Gold could have been out favor this morning because of news that South African gold miners arent expected to join South African platinum workers in the current strike and gold could have been undermined by a decline of 1.2 tons in GLD holdings overnight. Unfortunately, traders might expect to see ongoing chatter on the prospects of additional Fed tapering directly ahead, especially if positive leading indicators, Existing home sales and Chicago Fed data manages to countervail a minor rise in US initial clams. Gold might also be limited today by an ongoing slack tone toward China, as the release of the HSBC Flash Chinese Manufacturing PMI number last night kept slow growth fears alive in China. Comex Gold Stocks were unchanged at 7.812 million ounces.
Posted on: Thu, 23 Jan 2014 14:38:36 +0000
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