China Gold: Demand Rises 20% YTD
China’s demand for Gold reportedly rose almost 20% in the 1st 9 months of this year amid strong sales of Bold bars.
China’s gold demand rose 16 percent year on year to 815.89 tonnes in the first three quarters of 2017, Xinhua reported, citing the China Gold Association.
Jewelry consumption rose 7.4% to 503.87 tonnes.
Gold fell to a 1-week low on Friday as consensus-beating US economic data drove USD higher, outweighing the impact of a lackluster jobs report.
Spot Gold fell 0.6% to 1,267.95 oz by 2:26p EDT (1826 GMT), and was on track for 3d straight weekly decliner. It hit its lowest mark since 27 October at 1,265.16.
US Gold for December delivery settled down 0.7% at 1,269.20.
Meanwhile, Gold Bugs are concerned with another nation’s buying activities.
Turkey’s central bank is buying Gold again. The Big Q: How much and why?
Official data show Turkey added 3.8-M oz of Gold worth almost $5-B to reserves this year. While actual purchases could be much less, the figure is skewed by metal deposited by commercial banks, even if Turkey bought just 33% of the reported amount, it would still rank among the Top 2 to 3 buyers this year
While the central bank cited a diversification policy, some analysts speculated that the country could be shoring up reserves amid rising tensions between Turkey and its traditional Western allies.
“There could be any number of reasons why they’re doing this, we just don’t know,” a London-based analyst at Societe Generale SA, said. “One of the popular views is that they are fearful that their neighbors will antagonize them further, and that this will help them weather that storm.”
While Turkey has boosted reserves before, holdings more than 4X’d in the 3 years though late Y 2014, the recent increase comes amid deteriorating relations between the country and nations such as Germany and the US. The central bank also started its latest buying spree as President Recep Tayyip Erdogan called for Turks to use Gold instead of USDs to help stem a drop in the the Turkish lira.
Changes in official reserves are part of a strategy of diversification, the central bank said by text, without elaborating.
Have a terrific weekend.
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