14.03.2014 - Gold physical demand stays subdued as prices rally
Gold prices are up about 14% on the year as investors return to commodities and the yellow metal gets a safe-haven bid on geopolitical worries, but one key market participant is largely absent. Physical buying, particularly out of Asia, has been subdued at best for the past few weeks, as seen by the small premium or occasional discount Shanghai Gold Exchange prices trade versus spot. Additionally, gold-market traders pointed to positive gold forward rates, known as “gofo” rates, or lease rates, which also suggest the physical market isn’t tight...............................................Full Article: Source
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