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Indian Gold Demand Was Down 39% in Q2 – but Will Rise 27% in Q3

By , Associate Editor, Money Morning • @TaraKateClarke -

gold demand

Indian gold demand fell 39% at 204.1 tons in the second quarter according to data released by the World Gold Council (WGC) last week. Gold jewelry demand was also down 18% at 154.5 tons.

Import duties leftover from a currency crisis in 2013 have stifled Indian gold demand from their origination through this Q2.

Although the duties were supposed to have been repealed, they still haven’t been. Here’s why – plus two reasons the country’s demand will pick up quickly in the latter half of 2014…

Four Compelling Reasons to Buy Gold Stocks Right Now

By , Associate Editor, Money Morning • @TaraKateClarke -

gold stocks

Gold prices have rallied 8% so far in 2014. It follows that investors in gold stocks - which are closely linked with gold itself - stand to profit. But the first half of 2014's gains aside, pressures shaping the yellow metal right now demand an allocation of gold stocks in a healthy investment portfolio.

In fact, Money Morning Chief Investment Strategist Keith Fitz-Gerald said in May that the case for owning gold has never been stronger.

"Many investors are asking themselves if now is the time to buy gold. I think that's the wrong question," Fitz-Gerald said. "What they should be asking themselves is if they can afford not to buy gold."

Here’s why…

The Asian Giant Stampeding into Gold

By , Guest Writer, Money Morning -

As interest rates rise federal debt will be rolled over at higher rates, increasing the federal debt burden, suggesting a tipping point for Treasuries. Will the Fed try to suppress yields with printing more easy money?
Couple this with the outrageous demand for gold in the Asian giant and you have a "perfect storm" forming to drive gold's price higher.
Frank Holmes explores gold's bullish prospects...

Gold Prices Going Up Regardless of Jackson Hole Outcome

By , Contributing Writer, Money Morning -

Investors want to know if this week's Jackson Hole, WY meeting of central bankers will result in further stimulus measures and a rally in gold prices - but they don't have to wait to know gold is headed higher in 2012.

Gold fought back from its Tuesday morning low of $1,659.10 an ounce after a read on consumer confidence showed sentiment dropped in August to its lowest level in nine months. Americans have become increasingly worried about their employment scenarios and the overall outlook on the sluggish U.S. economy.

"Bad news is good news for gold again," Charles Nedoss of Kingsview Financial told CNBC.

Gold for December deliverylost $5.90, or 0.4%, to end at $1,669.70 an ounce on the Comex division of the New York Mercantile Exchange - but the slip won't last.

"Before you know it, gold is going to push for the next level, somewhere above $1,700 an ounce," Michael K. Smith, president of T & K Futures in Florida, told MarketWatch.

Gold glistened last week on news of possible additional monetary intervention from the U.S. Federal Reserve.

Following the release of the Federal Reserve's minutes last Wednesday, gold prices climbed to a 16-week high on hopes the central bank may engage in a fresh round of monetary stimulus to give life to the besieged U.S. economy.

"Many members judged that additional monetary accommodation would likely be warranted fairly soon unless incoming information pointed to a substantial and sustainable strengthening in the pace of the economic recovery," according to the Federal Open Market Committee (FOMC) meeting minutes from July 31 - Aug 1.

Gold futures for December delivery hit $1,655.90 an ounce Wednesday after the 2 p.m. announcement, marking a then four-month high.

Gold prices continued the rally Thursday, gaining some $32.70 as the metal relished in renewed safe-haven buying. The precious metal was buoyed by an uninspiring manufacturing report from China revealing production fell to a nine-month low in August. The data suggested more action may be needed to boost the Asian nation's lackluster economy.

Now analysts see even more upside potential as the gold-price trend slopes upward. Deutsche Bank AG (NYSE: DB) expects U.S. and Chinese policy measures to support gold's growth over the next quarter or so.

Read More…

Gold Prices: Central Banks See Shine in Yellow Metal

By , Contributing Writer, Money Morning -

When Federal Reserve Chairman Ben Bernanke failed to hint at more monetary stimulus last week, gold prices took a small hit.

But the picture for gold investors just brightened again thanks to increased activity from central banks.

Central banks are buying the yellow metal in copious amounts, marking the first time since 1965 that bankers have been such steady buyers.

Central banks amplified their gold stores by 400 metric tons, the equivalent of almost 2,205 pounds, in the 12 months through March 31. That was an increase from 156 tons in the same period a year ago, according to data from the World Gold Council.

Barron's reported Saturday that the World Gold Council "is now confident that central banks will continue to buy gold and has added official sector purchases as a new element of gold demand," according to a report from London-based bullion dealer Sharps Pixley.

The fresh facts indicate that central bank purchasing will continue for the foreseeable future.

That is quite a turnaround from the heavy selling the banks made from 1966 through 2007. During that time central bankers engaged in substantial selling, with only short periods of meager buying.

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