News

Advertisement
Bullion Desk - Home of Free Gold News and Bullion News
09 February 2011

Gold premiums move down on rising Gold Price

Mondays rise in prices causes premiums to descend

Tuesdays rise in Gold Prices, on the back of a rate increase by the Peoples Bank of China (PBOC), caused 1oz fixed price Gold premiums to fall back further from their recent highs to around 16% yesterday.

Golds positive response to the rate move in China, a further effort to damp rising domestic inflation, was a surprise to some analysts, as the exact same move by POBC in January sparked a considerable sell off of Bullion. However this time the move was seen by the Gold market as a validation of higher inflation in the global economy, all of which is likely to prove supportive to Gold and Silver moving forward.

Rising prices further eased premiums. 1 oz Gold bars in the United States trade currently at 16.2% premium down from the 16.4% yesterday. In the United Kingdom 1 oz Gold Bars were priced at 19.8% premium. In physical Silver prices, 1 oz Silver Bars in the United States are asking 57.5% premium over Silver, and in the UK 1 oz Silver Bars asked 79% premium.

While these premiums would still indicate a very tight supply situation, the fall across the board in Gold and Silver Premiums would appear to be as a result of rising prices rather than significantly easier supply.


Advertisement
Buy gold online - quickly, safely and at low pricesThe Real Asset Co. Buy Gold Online