'Au'-sterity for gold as prices plunge - The Buzz

Gold producers, ignored as global stocks rebounded in the past two years and investors turned to exchange-traded funds that track bullion, face closing mines or shutting themselves down after the metal’s worst slump in three decades this week made 15% of miners unprofitable.

Filed under: Investing

China exerts a massive amount influence on commodity markets.  It is said to account for 40 percent of base metal consumption and 23 percent of major agricultural commodities, according to an IMF working paper by Shaun Roache.

  Gold in USD, by Tick, – (Bloomberg) Gold extended gains above $1,400 an ounce on signs that jewelers, investors and store of value buyers of gold are taking advantage of the biggest slump in prices in three decades.

From GoldCore

Panic, depression, rage, suicidal ideations: watching the US mainstream media, one would think that these are the prevailing sentiments among those who unlike the prevailing "developed world" speculative class, are invested most heavily in physical old - Indians, who collectively comprise the largest end-demand consumer segment for gold products. One would be very wrong.

Today’s AM fix was USD 1,462.25, EUR 1,123.43 and GBP 947.79 per ounce. Yesterday’s AM fix was USD 1,446.50, EUR 1,107.07 and GBP 937.64 per ounce. Gold climbed $33.90 or 2.37% yesterday to $1,464.30/oz and silver surged +4.83%. Gold has surged 4.9% in dollar terms so far this week and is headed for its biggest weekly gain in one-and-a-half years. Gold has recovered in all currencies and is up by 4.8% in euro terms and 3.7% in sterling terms. 

The “coordinated smashdown of gold and silver” was on everyone’s mind this week, but is it true? Did the price of paper gold (futures) divorce from the price of physical gold? One thing is for sure, the dollar gained from 21g to over 22g of gold on Friday. A 5% move in the world’s biggest paper currency is a big move.