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April 18, 2013

Release Date: 
Thursday, April 18, 2013

Gold prices rose again today on the New York Spot Market as investors throughout the world continued to acquire physical gold.  Silver prices, however, remained flat. You can see the most current spot prices here.

“Gold retail sales tripled across China from April 15 to April 16, the China Gold Association said. In India, demand climbed to the highest this year, according to the All India Gems & Jewellery Trade Federation. The nations are the world’s top bullion buyers… ‘Physical demand continues to remain strong,’ Phil Streible, a senior commodity broker at R.J. O’Brien & Associates, said in a telephone interview. ‘Some investors are buying gold as economic numbers have been a disappointment.’” (“Gold Climbs in New York on Signs Physical Demand Is Rebounding,” Bloomberg, 4/18/13.)

Gold prices were further helped by disappointing economic news. “The Philadelphia Federal Reserve said Thursday that its business-conditions index edged down to 1.3 in April from 2.0 in March. Economists polled by MarketWatch expected the index to rise to 4.0. Separately, the Labor Department said that weekly initial jobless claims rose by 4,000 — a bit more than expected — to a seasonally adjusted 352,000. And the Conference Board said the U.S. economy has ”lost some steam” and will grow slowly in the near term. Its leading economic index ticked down by 0.1% in March, after three months of gains.” (“Gold climbs toward $1,400 an ounce,” MarketWatch, 4/18/13.)

Sales of physical gold have also increased in Japan, Europe and Dubai, Analyst Ross Norman reported. “The Indian market was the first to respond as prices bottomed (no surprise there - they are always adept at spotting bargains), followed soon after by Dubai, Japan, Europe and now China. Sourcing small denomination bars is now proving difficult as stocks evaporate and dealers can expect to wait between four and six weeks for fresh stocks from the gold refiners. Premiums on bars, as one might expect, are rising fast.” (“Gold crashes but physical demand sees unprecedented demand” Resource Investor, 4/18/13.)

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†This material has been prepared for private use. Although the information in this commentary has been obtained from sources believed to be reliable, Goldline does not guarantee its accuracy and such information may be incomplete or condensed. The opinions expressed are subject to change without notice.

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