With global borrowing costs so low and still some murmurs of possible QE3 doing the rounds there are a few people out there scratching their heads as to why Gold isn’t rising..
Physical demand from the likes of India is not at normal levels, partly due to the Indian government recently imposing import duties on the metal which led to a strike by the local jewellery traders, but also that normal strong demand ahead of the Hindu Akshaya Tritiya Festival at the end on the month has so far failed to emerge
There’s also talk in the press that Syria has been unloading some of its Gold to raise revenue to combat sanctions imposed by the West and other Arab countries, which has bitten hard into the Syrian Central bank and the country’s oil exports. Some traders out of the UAE have said that Syria has been unloading Gold at rock bottom prices some as much as 15% below market prices, but wouldn’t divulge where.
Gold trading around 1642/43
