Here is a story that caught my eye overnight that I wanted to share with my readers: China to make it easier for gold imports and exports to cross their borders.
China’s customs and central bank will allow companies that have done frequent gold transactions crossing the border to apply for a single permit that will allow up to 12 gold shipments.
Starting June 1st, the rule will take effect in the following cities:
I believe this has all come about because of the Shanghai Gold Exchange’s influence. This is significant because China is the largest gold producer and consumer of gold in the world.
Gold purchases have increased of late, as economic growth continues to increase, which in turn increases demand for gold coins and bars. It seems that finding metal in China has become a problem for most dealers and in turn must rely on imports to fill the void.
Back to today’s market:
Strong rally in the gold market this morning off of a lower than expected job number. This job number virtually takes any chance of a June rate hike off the table unless something unforeseen happens.
Total non-farm payroll increased by 160,000 jobs well below the expected 205,000 forecast.
Gold ETF holdings now at a year high sitting at 59,387,919 ounces.
Author Name: Walter Pehowich
Walter Pehowich is the executive vice president of precious metals investment services for Dillon Gage with over 38 years of experience in precious metals investment services. His career began in 1977 at Bache (which evolved to Prudential-Bache Securities and then Jefferies Investment Bank). While at Jefferies, he served as senior vice president with oversight of investment grade precious metal products. Pehowich holds a National Futures Association (NFA) Series 3 license, authorizing him to advise and sell alternative investments in commodities and futures markets.