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Round up of Today’s Gold Price News – Top 3 Articles
A quick look at Today’s gold price news and a brief summary of the Gold Price for the month of July.
Swiss Gold Refinery Valcambi Sold
In today’s gold price news, well-known Swiss gold refiners Valcambi have been sold to the world’s largest Jewellery manufacturer Rajesh Exports Ltd. (REL).
It is no surprise Rajesh Exports have purchased the Swiss refiner. Earlier this year it was reported that the jewellery manufacturer were on the hunt to purchase a refiner and just this month it was widely circulated that REL were looking to take a large stake in Valcambi. Valcambi’s sellers, Newmont Mining Corporation, stated in a press release “we are pleased that Valcambi is being acquired by Rajesh Exports with whom we are continuing our long term contracts and we are confident Rajest Exports will maintain the high standards of Valcambi”
This acquisition has made big news in the gold world, partly because it shows the ambition of the manufacturer to expand its holdings in the precious metals industry. It is more than likely that the purchase will marry together the much sought after Valcambi-Swiss brand with REL’s wider customer base in Asia. To read the full statement Rajesh – Valcambi Press Release.
Dollar Spikes after FOMC Statement & US Data
Afer the FOMC meeting on Tuesday, the committee released a FOMC Full statement on Wednesday with an update about the US markets and indications for the impending interest rates rise. In truth, the minutes did not reveal any information not already in the public sphere and it reinforced the sentiment that it would be looking for specific indicators before any incremental raising of the interest rate “When the Committee decides to begin to remove policy accommodation, it will take a balanced approach consistent with its longer-run goals of maximum employment and inflation of 2 percent.”
Also this week US Weekly Jobless Claims were released, beating the forecast of 275,000 with data of 267,000. US Q2 GDP also released better than expected results with growth estimated to be 2.3%, much improved from the 0.6% last quarter.
Following these announcements, the dollar rose to a one week high and has gained just over 8 percent this year.
Paper Gold Sell-off Continues
After Shanghai’s huge 33 tonne sell-off of gold a couple weeks ago, the ETF sell-off hasn’t been abated. Trade reports have intimated that gold holdings are at their lowest since the end of 2009, with outflows recording their eleventh consecutive day. SPDR Gold Funds (GLD) traded on the NYSE, are currently trading at their lowest since mid October 2009 where the price was near the current 104.27. The volumes trading in Oct ’09 were 357.92M compared to 6.66M currently. It appears there is a more gradual slide with the lower volume of trading, with a majority weighted in selling.
Verdict:- It has been a difficult month for the gold price: at the beginning we were watching the Greek tragedy unfold, we’ve seen growth in the UK & the US, currency battles continuing and the Chinese dumping 33 tonnes of gold, only to publicise the first time in 6 years, they have increased their gold reserves considerably. Gold Price News has been coming thick and fast this month and the price has been forced to 5 year lows. Where will the bottom be?
More gold price news next week
Article by Michael Cooper