Gold News & Info

Source: Dr. Bill Musgrave, American Gold Exchange

Austin— Gold rebounded 0.5% on safe-haven demand buying ahead of tomorrow's U.S. presidential election. The closeness of the race is breeding uncertainty about future economic direction, and gold is a traditional asset-of-choice during political and economic uncertainty. The markets generally see an Obama victory as being more bullish for gold because Romney is perceived as less inclined to maintain the loose monetary policies, including QE3, that have helped to drive gold prices higher since 2008. Bargain-hunters also bid-up gold, after Friday's 2.4% loss. Silver and palladium tracked gold higher, gaining 0.9% and 0.6%, respectively, while platinum fell 0.6%.

At the Comex close: December gold added $8 to $1,683.20; December silver picked up 27 to $31.13; January platinum fell $2.20 to end at $1,542.70; and December palladium gained $3.35 to $603 an ounce.

Gold's gains were suppressed by a substantial rally in the dollar after new fears about Greece drove the euro to a two month low. Greek Prime Minister Antonis Samaras warned that Greece may be forced to leave the euro if its parliament doesn�t approve a new round of austerity measures. Severe cuts are required by the so-called troika (EU, ECB, IMF) in order to qualify for another tranche of aid, without which Greece is likely to slip into insolvency. A stronger dollar suppresses the gold price by making it more expensive to holders of other currencies.

Chinese gold imports from Hong Kong jumped by 30% in September, according to Blooomberg, as demand for physical bullion is starting to regain traction. The Chinese economy is picking up steam after a slowdown of nearly two years, and individual investors are again turning to gold as a hedge against inflation. Renewed demand from China would be quite bullish for gold going forward. With an exploding middle class, China is expected soon to surpass India as the largest gold-consuming nation.