 "Chris Wood says gold could visit $ 1000 level")
Christopher Wood, managing director and chief strategist of CLSA, the Hong Kong-based investment banking and broking entity, has forecast a bearish trend in gold prices.
He said in his noted Greed and Fear report on Friday that gold could even dip to $1,000 an ounce, “if the (US) Federal Reserve really starts raising rates, with the ultimate issue remaining whether America can really normalise monetary policy”.
The report refers to a key data point, the quarterly employment cost index due to be published on July 31. This would have significance for movement of gold prices in the near future.
The report said, though, that, “it would certainly be surprised if China had not bought a lot more bullion. Data from the Swiss Customs administration suggests massive flows into China. Thus, Swiss exports of gold to China and Hong Kong totalled 630 tonnes and 1,713 tonnes, respectively, since January 2012.”
Russia has also been continuously adding gold to its reserves.
On Friday, gold was trading at $1,080 an ounce in the international market and silver at $14.47 an oz. Here, spot gold closed Rs 350 down to Rs 25,000 per 10g, while silver closed Rs 550 down at Rs 34,200 a kg.
He said in his noted Greed and Fear report on Friday that gold could even dip to $1,000 an ounce, “if the (US) Federal Reserve really starts raising rates, with the ultimate issue remaining whether America can really normalise monetary policy”.
The report refers to a key data point, the quarterly employment cost index due to be published on July 31. This would have significance for movement of gold prices in the near future.
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Early this week, these had started falling on the understanding that China had added 604 tonnes of gold to its reserves since 2009, much lower than earlier estimated by the market. And, hence, future gold demand from China for reserves might not be that high.
The report said, though, that, “it would certainly be surprised if China had not bought a lot more bullion. Data from the Swiss Customs administration suggests massive flows into China. Thus, Swiss exports of gold to China and Hong Kong totalled 630 tonnes and 1,713 tonnes, respectively, since January 2012.”
Russia has also been continuously adding gold to its reserves.
On Friday, gold was trading at $1,080 an ounce in the international market and silver at $14.47 an oz. Here, spot gold closed Rs 350 down to Rs 25,000 per 10g, while silver closed Rs 550 down at Rs 34,200 a kg.