07 August 2010
Gold Price Regains $1200, Silver at $18.30
Gold positive news week pushes yellow metal above $1200 per troy ounce
A solid rally in precious metals this week finished off with a push above $1200 for Gold prices and, also saw Silver settle at $18.30 on the London afternoon fixes on Friday.
Investors increasing concern about the US economy, in particular surprise decline in US non-farm payrolls of 131,000 this week, sent investors turning to the yellow metal, as physical buyers also bolstered demand.
Indications of robust buying from India's jewelry sector also supported demand for Gold.
On Tuesday, China unveiled a series of measures to liberalize its local gold market. Measures allow more commercial banks to import and export Gold, which the market took as a sign of potential increasing demand. It also allows the four state owned banks to trade gold bars.
According to the WGC, China has the world's 6th biggest gold reserves of 1,054 tonnes. Though some commentators point out Chinas track record of being slow to declare increased reserve allocations in Bullion.
Premiums at BullionSupermarket.com remained subdued on Friday with 500 oz Silver Philharmonics showing particularly good value, trading at 18.59%.
1 oz Gold Philharmonics also showed good value, at 6.63% premium.