BUY GOLD prices in London’s wholesale market held steady against a falling US Dollar on Friday, heading for a 1.3% weekly drop but rising 1.4% across the month of April at $1267 per ounce., the price to buy gold rose 1.4%,
Ahead of the US open, that beat the S&P500 stock index’s 1.1% gain from the end of March.
Crude oil traded flat around $50 per barrel. Silver prices held almost 5% lower, fixing in London at $17.41 but averaging their strongest level in April at $18.05 per ounce since September.
“Support remains firm at $17.26,” reckons bullion bank and London market maker Scotia Mocatta’s New York desk, pointing in its daily technical note
to the “76.4% Fibo retracement
level of [silver’s] March-April rally.
“[But] momentum indicators are bearish and risk remains…Silver appears poised to target the $17 level.”
After finding strond demand to buy gold at an opening suggestion of $1261.50 on Thursday afternoon, the LBMA Gold Price
today met weaker buying and solid selling above $1266 at the 10:30 fixing.
The process – now formally regulated under UK law – found a balance between buyers and sellers at $1265.55, pulling the AM benchmark’s April average up to $1267.15 per ounce, highest monthly London AM Gold Price average since October.
Gold priced in Sterling also recorded its highest monthly average since October.
Prices to buy gold in Euros averaged their highest level since September this month, despite the single currency’s strong rally on the FX market after France’s first-round election result last weekend.
“Silver may be down, but the return of ETF investors suggests it’s not out,” says Bloomberg, noting the recovery to 1-month highs in the size of the giant iShares Silver Trust
Rallying from mid-April’s drop to the smallest size in a year, the SLV ended Thursday needing 10,272 tonnes of bullion to back its shares in issue, equal to almost two-fifths of the world’s annual silver mine output.
The largest gold ETF
in contrast – the SPDR Gold Trust (NYSEArca:GLD) – lost almost 1 tonne of bullion backing as shareholders liquidated 0.1% of the stock on a $1 rise in the spot price.
That took the GLD’s total backing to 853 tonnes, equal to one quarter of annual world mining output.
Friday meantime marked the festival of Akshaya Tritiya
in India, a key date for new ventures and now also for buying gold on Hindu calendars.
One of the four most auspicious days
on the Hindu calendar, and now the single heaviest day of Indian household gold demand, “People have great faith
on Akshaya Tritiya and we expect growth to be robust 20-30%,” said Nitin Khandelwal, chairman of All India Gems & Jewellery Trade Federation.
“[But] jewellers will be looking for maximum sales for this day,” Khandelwal added, “as it will be done before GST” – the general sales tax set to apply to consumer goods across India within the next few months.
“A high GST rate such as 6-8% could adversely affect the industry,” warned specialist analysts Metals Focus in a recent report, “resulting in more off-the-book transactions.
“We believe that an overall tax structure, covering both the bullion import duty and GST, should be no higher than 12-14%.”
Mobile payments wallet Paytm yesterday launched a new gold app
, offering to let Indian households trade as little as 1 Rupee of gold at a time (1.6 US cents), stored with government-backed MMTC-Pamp, the joint-venture with leading Swiss refiners MKS Pamp.
Global e-tailer Amazon meantime said
that April’s jewelry promotion in India has netted 3 times its typical sales, driven by demand for 22 carat items as well as small bullion coins.
Private demand to buy gold in China – now the world’s No.1 consumer market, overtaking India since 2013 – rose 14% between January and March
from the first quarter of 2016, the state-approved China Gold Association said Friday.