Gold prices returned from the New Year 2017 holiday to track the rising Dollar on Tuesday, pushing higher against non-US currencies as Washington’s president-elect Donald Trump was rebuked by Beijing over his threat to start a trade war with the world’s second-largest economy.
Gold prices held tight around last week’s close of $1151 per ounce, rising to 1-month Euro highs above 1110 as world stock markets gained but government bond prices fell again, nudging interest rates upwards.
Gold prices in Shanghai held firm overnight versus China’s Yuan, offering importers a $24 per ounce premium above comparable London quotes – down sharply from the new 3-year highs hit amid tighter import licensing by Beijing before Western dealers shut for Christmas, but still 10 times the average incentive of the last 3 years.
Data released last week put China’s net gold bullion imports through the key conduit of Hong Kong at the lowest since last January in November.
On an annualized basis, however, Hong Kong’s net shipments to China – the world’s No.1 gold consumer, importer and mining producer – held 3.5% ahead of 2015.
This post was published at FinancialSense on 01/03/2017.