Breaking News

Gold dives after HSBC lowers exposure to the metal

CommoditiesJan 24, 2013 08:24PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items

Investing.com - Gold futures continued sliding in Friday’s session following a bearish day during Thursday’s U.S. trade and after another major global bank less-than-enthusiastic comments on the yellow metal.

On the Comex division of the New York Mercantile Exchange, gold futures for February delivery fell 0.13% to USD1,667.65 per troy ounce in Asian trading Friday. Gold futures fell 1.07% during Thursday’s U.S. session.

The yellow metal is likely to test support USD1,653.55 a troy ounce, the low from Jan. 11, and resistance at USD1,695.85, Tuesday's high.

The catalyst behind Thursday’s slack performance was some profit-taking after a decent run over the past few days on new U.S. policymakers will soon vote to extend the government's debt ceiling for three months.

However, global banking giant HSBC said it has lowered its exposure to gold to 7% from 8% in its strategic portfolio and to 7% from 9% in its tactical portfolio. HSBC. In recent weeks, Citigroup and Goldman Sachs have lowered their price targets on bullion.

Morgan Stanley also lowered its 2013 price forecast for gold by 4% to USD1,773 though the bank did say gold may trade up to USD1,845 per ounce in 2014.

Gold prices are also being hampered by news that demand has waned in India after the country raised its import tariff on gold to 6% to lower its current account deficit. Media reports have said some Indian buyers have not been tempted by significant discounts on gold offered by local dealers. India is the world’s largest gold consumer.

Meanwhile, Russia’s central bank said it intends to continue purchasing bullion as part of its efforts to bring gold to 10 percent of its total foreign currency reserves. The bank first announced that plan in 2005.

Elsewhere, Comex silver for March delivery 0.25% to USD31.642 per ounce while copper for March delivery added 0.17% to USD3.683 an ounce.

Gold dives after HSBC lowers exposure to the metal

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Post also to:
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Faizan Abbasi
Faizan Abbasi Jan 25, 2013 8:07AM GMT
Saved. See Saved Items.
This comment has already been saved in your Saved Items
A question: In the 3rd last paragraph, it's mentioned that India is the world’s largest gold consumer. it's for physical right?
0 0
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Post 1000
Please wait a minute before you try to comment again.
Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Add Chart to Comment
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email