May 17, 2012
China's gold demand hit a record high in the first quarter on investor worries over inflation and property market curbs, the World Gold Council said on Thursday, bucking a lower trend in global consumption driven by higher gold prices.
Global gold demand fell 5 percent on the year to 1,097.6 tonnes in the first three months of 2012, as jewellery and technology sectors bought less gold with average prices up 22 percent from a year earlier, but investment demand and central bank buying helped cushion the fall, the industry group said.
China remained the world's top gold consumer for the second quarter in a row, with its gold consumer demand up 10 percent to 255.2 tonnes, beating India's 207.6 tonnes, which was a 29 percent decline on the year. More...
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Gold has been flirting with 5-month lows over the last couple of sessions, but could be close to finding a floor. Despite underwhelming physical demand and persistent U.S. dollar strength, a notable shift toward “preemptive monetary easing” by the Fed, coupled with the rising possibility of Eurozone QE could fuel a new leg up in what has been a decade-long rally for the yellow metal.
It hasn’t looked good for gold over the last couple of months. Bullion prices dropped more than 5% in April and have continued their decline in May. More...
Falling Re: Gold is the safest investment bet nowThe Rupee's southward plunge, to its lowest level against the dollar, has set off alarm bells all around, but the currency's travails are but a mirror of what is ailing the Indian economy these last two years.
In response to the fall, on a day when the stock markets too lost nearly two per cent, Finance Minister told Parliament on Wednesday, "This is a difficult world, international situation is difficult. Country after country is facing major economic crisis."
Although he clarified that there was no need to press the panic button, yet, there are not many takers for his limited optimism. More...
Featured Commentary:
Behind the predictable thrust and parry of presidential candidates, President Barack Obama's operatives are quietly conjuring a grand illusion to help him win re-election this November.
"It's the economy, stupid," said Bill Clinton campaign operative James Carville in 1992, knowing that incumbent presidents usually win if the economy seems good, and lose if the economy appears bad.
President Barack Obama's problem is that the economy is very bad right now. If this election becomes a referendum on his failed economic policies, Mr. Obama is toast . . . hence all his distractions to bamboozle voters.
