news.goldseek.com / Julian D.W. Phillips / 18 October 2016
Gold Today –New York closed at $1,254.60 on yesterday after the previous close of $1,251.40. London opened at $1,260.00.
– The $: € was weaker at $1.1004: €1 from $1.0097: €1 yesterday.
– The Dollar index was weaker at 97.73 from 97.94 yesterday.
– The Yen was stronger at 103.90: $1 from 104.10: $1 yesterday against the dollar.
– The Yuan was slightly stronger at 6.7378: $1 from 6.7388: $1 yesterday.
– The Pound Sterling was stronger at $1.2276: £1 from Friday’s $1.2179£1.
Yuan Gold Fix
The difference between New York’s close and Shanghai’s gold prices is gaining momentum. Yesterday and today there is a $10 difference, commonly referred to as the ‘premium in Shanghai. Such a comment implies that Shanghai has to add on an amount because gold is less available there and must wait for imports to even out prices. But the reality is that China has more than enough physical gold to satisfy the market on ‘normal’ days. When demand is growing ahead of supplies, it’s because of a short-term increase in demand over supply, a different feature. That’s why prices rise anywhere in the world. The question to be asked is, “Which price reflects the balance of supply and demand better and which price should world markets, as well as suppliers and buyers, use as a basis for their contracts?”