At New York’s opening gold was trading in the euro at €1,021.56 and at $1,111.15.
Tuesday saw sales from the SPDR gold ETF of 6.199 tonnes making over 16 tonnes sold this week but nothing was sold from the Gold Trust leaving their holdings at 680.105 tonnes and at 160.30 in the Gold Trust. These sales were sufficient to cause such an ongoing fall in the gold price and if they continue, expect more falls. On top of that the Commercials are short again.
What investors and traders should be working out now is the impact of the arriving Yuan Gold Fixing in Shanghai. The arbitrage trade between the two centers will blossom and further squeeze the influence of both London OTC trading and New York’s COMEX. With gold likely to return to a greater role in a multi-currency system we would expect developed world selling by institutions to be curtailed so as to keep hold of the gold they have.