Daily Market Update

China Adds 320,000 Ounces To Gold Reserves – First Central Bank Purchase Since October 2016

– China increases gold holdings by large 320,000 ounces
– Gold bullion remains a tiny component of the People’s Bank of China massive foreign exchange (FX) reserves which rose to $3.073 trillion

– China’s gold reserves rose for first time since October 2016 to 59.56 million ounces by the end of December (1,853 metric tons) from 59.24 million ounces 
– Gold climbed 5% in December on equity rout, growth concerns

by Bloomberg:

After a hiatus of more than two years, China is adding to its gold reserves again.

The People’s Bank of China increased holdings to 59.56 million ounces by the end of December, or about 1,853 metric tons, from 59.24 million ounces previously, according to data on the central bank’s website. They had been unchanged since about 130,000 ounces were added in October 2016.

The world’s biggest producer and consumer boosted holdings of bullion in a month marked by mounting concerns that China’s trade dispute with the U.S. is threatening economic growth. Spot gold had its strongest month in almost two years as those fears spurred gyrations in equities and the dollar and boosted demand for the precious metal as a haven.

Speculation that the Federal Reserve may pause its interest rate hikes has given further strength to gold’s rally into the new year and assets in bullion-backed exchange-traded funds are at a seven-month high. Spot gold was trading 0.5 percent higher at $1,291.83 an ounce.

“It’s a bullish sign for gold,” Matthew Turner, a commodities strategist at Macquarie Group Ltd. in London, said by phone. “The reasons could be diversification, a wish to get away from the dollar, but it’s hard to be certain because we just don’t know enough about what their motivations are.”

The Asian nation has previously spent long periods without revealing increases in gold holdings. When the central bank announced a 57 percent jump in reserves to 53.3 million ounces in July 2015, it was the first update in six years.

“I’m always wary of year-end moves, but if they buy again, then it’ll look like they’re on another run of additions, like they did in 2015-2016.” Turner said.

It’s not just China buying. Poland and Hungary surprised the market in 2018 by adding to their gold holdings for the first time in many years.

Central banks were expected to increase their purchases of gold in 2018 for the first time in five years as eastern European and Asian countries seek to diversify their reserves, according to an October projection by consultancy Metals Focus Ltd.

Courtesy of Bloomberg

 

 

News and Commentary

Traders and Analysts Bullish for 8th week in Bloomberg Survey (Bloomberg.com)

Gold up as Fed stance pricks dollar, stocks rally cap gains (Reuters.com)

Gold smuggling to Japan falls; Concerns remain ahead of October tax hike to 10% (JapanTimes.co.jp)

Trump, Democrats hold ‘contentious’ talks, fail to end shutdown (Reuters.com)

Gold falls Friday, edges up for the week; palladium settles at a record (MarketWatch.com)


Source: Bloomberg

Gold Could Climb to $1,400 Amid Slowdown Concerns (Bloomberg.com)

Stock Buyers Beware, the S&P 500 Bottoming Process Can Take Time (Bloomberg.com)

Stocks ‘are only at the beginning of the selloff’: SocGen (MarketWatch.com)

Stock Market Crash Of 2018 Is Rapidly Transforming Into “The Financial Crisis Of 2019” (TheEconomicCollapseBlog.com)

US Housing Market To Get Uglier In Near Future (ZeroHedge.com)

A Perfect Storm: Manhattan Home Prices Fall Below $1 Million For First Time In Years (ZeroHedge.com)

PREPARE NOW For Economic Collapse In 2019 – G EDWARD GRIFFIN (Youtube.com)

China Has a Dangerous Dollar Debt Addiction (Bloomberg.com)

Listen on SoundCloud , Blubrry & iTunesWatch on YouTube below

Gold Prices (LBMA PM)

04 Jan: USD 1,290.35, GBP 1,016.80 & EUR 1,131.24 per ounce
03 Jan: USD 1,287.95, GBP 1,024.05 & EUR 1,132.62 per ounce
02 Jan: USD 1,287.20, GBP 1,014.44 & EUR 1,125.27 per ounce
31 Dec: USD 1,281.65, GBP 1,005.45 & EUR 1,120.03 per ounce
28 Dec: USD 1,277.25, GBP 1,009.16 & EUR 1,114.91 per ounce
27 Dec: USD 1,271.10, GBP 1,006.20 & EUR 1,115.26 per ounce
24 Dec: USD 1,261.25, GBP 996.26 & EUR 1,105.23 per ounce

Silver Prices (LBMA)

04 Jan: USD 15.70, GBP 12.40 & EUR 13.76 per ounce
03 Jan: USD 15.53, GBP 12.37 & EUR 13.70 per ounce
02 Jan: USD 15.44, GBP 12.19 & EUR 13.51 per ounce
31 Dec: USD 15.47, GBP 12.11 & EUR 13.51 per ounce
28 Dec: USD 15.30, GBP 12.05 & EUR 13.34 per ounce
27 Dec: USD 15.06, GBP 11.92 & EUR 13.22 per ounce
24 Dec: USD 14.68, GBP 11.60 & EUR 12.88 per ounce


Recent Market Updates

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– Gold Hedges Stock Market Falls In 2018 – Gains 2.7% In Euros and 3.8% In Pounds
– Hope For Best In 2019 But Prepare For Worst by Increased Allocations to Gold and Silver – Outlook 2019 Podcast
– Prepare For Global Debt Bubble Collapse – Outlook 2019
– Happy Christmas From All The Team in GoldCore
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– Everything Bubble Started Bursting In 2018 – GoldCore Video
– Global Financial System Is ‘Unstable’ and Risk Of ‘Clearing System Seizure’, BIS Warns
– Gold Flowing From West To East and Now To Goldman Sachs
– Brexit Risk Sees Gold Rise To Test EUR 1,100 Per Ounce
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Mark O'Byrne
Executive Director

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