Chinese consumers, including those from the Mainland, are snapping up more golden horse accessories and gifts this year compared to last year's golden reptiles — snakes are viewed as both malevolent and divine by the Chinese.
We are among the group that has called for a market correction for some time. The global markets reacted after the Chinese reports of contraction. Other factors governing the activity are the U.S. economy, corporate earnings, the labor situation, and of course the ongoing European debt crisis.
Emerging-market currencies had their worst selloff in five years yesterday. The U.S. 10-year yield fell three basis points, or 0.03 percentage point, to 2.75% as we seem to be experiencing a “global flight to quality.”
The LBMA and the GFMS expect an average gold price of $1,219 and $1,225 in 2014. This compares with an actual average price of $1,411 last year and a gold price of $1,204.50 for London Gold Market PM Fixing as of Dec. 30, 2013.
By December, the most recent month for which statistics are available, the U.S. dollar Fiat Money Quantity (FMQ) had grown to $12.48 trillion. This is $5.05 trillion more than if it had grown in line with the established average monthly growth rate from 1960 to the month before the Lehman Crisis.
Hedge funds raised bullish gold wagers to the highest in eight weeks as signs of stronger Chinese demand drove prices to the longest rally since August. Goldman Sachs Group Inc. says the gains will be short-lived.