Market Update (3rd November 2014)

The following is the gold market update for late October, for the period 27th October to 31st October 2014.

The week started with the gold price in not too bad a condition at around 1230 USD/oz. However, from Wednesday onwards, news emerging that the US Federal Reserve resolution favoured the ‘hawks’; promising-looking third quarter GDP figures for the US; as well as an unexpectedly relaxed policy from the Japanese Central Bank; and a strong USD in the currency markets, all contributed to a dramatic fall of 70 USD/oz in the gold price over just a few days. Such was the drop, that on Friday a new four-year low point was set at 1161.40 USD/oz. This shows that there is still plenty of space for movement below last year’s trough of 1180 USD/oz.

In summary, the markets opened this week at 1231.04 USD/oz, closing at the end of the week at 1172.60 USD/oz, representing a fall of 58.44 USD/oz or 4.74%. The week’s high was 1234.85 USD/oz, and the low was down at 1161.40 USD/oz.

The market for late date 1 oz bullion silver Pandas, ever popular among many Mainland investors these days, stands like this.

In the Mainland coin markets, the 2014 1 oz silver Panda has a value which has recently been holding steady around 168-169 yuan; prices for the 2013 1 oz silver Panda have touched 210 yuan; and the 2010 1 oz silver Panda is doing rather well at 460-500 yuan – possibly due to an announcement that it will form a coin exchange fund soon to be floated as a stock on the Nanjing Exchange.