CEW – Current Event Write-Ups
Status of Gold Market in US
Gold is one of the precious metals in the world and it got a price hike of more than four percent in last 28 days, which happened due to increase of Chinese buyers’ interest in gold. One of the largest substantially supported gold exchange traded fund in the world known as SPDR Gold Trust had reported its seven weeks high growth in the sales of gold reason behind substantial increase in the prices too. Although the same fund has not seen any growth in the month of December and January but saw a massive response from the market this month of February. The reason given by experts against this rise was not because of influence of US economic factors but demand from the east countries especially from China.
The start of the year 2014 was not good for the equity market and poor performance of US share market diverted investors to invest in the gold as a promising investment instrument created up in the gold market. According to news on 14th February increase in the physical demand for gold was due to economic uncertainty. It was reported that market of silver metal showed a growth over the gold market which looked more promising. Some of the experts’ analysis showed that increase in the gold demand may not sustain for long. (Saefong &Watts)
It was in the new on 17th February updated by Market Watch that Chinese firm Gold leaf Jewelary acquired an energy firm of Texas under its diversification strategy and to compensate the losses company had in the present gold processing business.
On February 18 it was in the news that World Gold Council reported a slowdown in the demand for gold futures in trading electronically. It was due to fifteen percent slump in the gold demand in the year 2013. According to council report China overtook from India as the new gold buyer nation in the world.
Kitchen, Michael. Gold falls as report highlights drop in demand. 18 February 2014. 18 February 2014.
MarketWatch. China's Goldleaf Jewelry to buy Texas energy firm. 17 February 2014. 18 February 2014.
Saefong, Myra. SPDR Gold Fund holdings rise to a more than 7-week high. 14 February 2014. 18 February 2014.
Saefong Myra & Watts William. Gold up on week, highest close in over 3 months. 14 February 2014. 18 February 2014.