China increases gold reserves post six years
- The People's Bank of China (PBoC) boosted its gold reserves overnight by 57%. This move was made for the first time in six years.
- Analysts predicted that this shift would not have a deep impact on prices.
- This report came in after months of speculation that the Chinese government was surreptitiously buying gold.
- The move made China the world's fifth largest gold reserve.
Google vs. gold: The investment battle
In 2005, an individual, Rick Munarriz debated over Google or gold as a means of investment when both seemed to have equal footing in the market. By the end of 2008, Google closed at $307.65 a share, while gold closed the year at $866 an ounce.
With falling prices, dealers stock gold
- Dealers in India resorted to stocking gold due to the plummet in the prices in the domestic and global gold market.
- With US Federal Reserve tightening the polices and proposing a change in rates, dealers anticipated a further fall in the price.
- Meanwhile, Indian markets expected a surge in retail jewellery sales as the market had become sluggish after Akshaya Tritiya.
Chinese gold dumping triggers trade and panic
- Gold prices declined as the Chinese makets off-loaded it. In addition, speculators capitalised on the declining trend and traded actively hinting at global liquidation.
- Chinese gold reserves were reduced to half its expected level as a result of the dump it made in the market.
- It was gauged that 33 tonnes of gold was traded on the Shanghai spot market.
Dubai fights obesity with gold
Using gold as a means to curb the national obesity, Dubai launched a program in 2014 that paid children 2 grams for each Kilogram (roughly 2.2 Pounds) of weight that they shed.
Gold prices plummet to a five year low
- Massive selling on Shanghai Gold Exchange pushed gold prices by 4% to a five-year low. The prices dropped to $ 1,088.05 an ounce, the lowest since March 2010.
- RBI has taken several measures to bring pricing under control; India had earlier spent $15.2 Billion to make the biggest import in May 2013.
- Despite the fall, transactions were minimal anticipating a further downside in prices.