Spot gold fell 0.2 per cent to $1,562.81 per ounce by 0107 GMT. In the previous session, prices hit their highest since April 2013 at $1,582.59. US gold futures fell 0.2 per cent to $1,566.00.Gold prices inched lower on Tuesday, a day after hitting their highest in nearly seven years, with a lack of immediate escalation between the United States and Iran denting bullion‘s safe-haven appeal.
Goldmax
Anglo’s De Beers unit will mine 1 million carats less than previously forecast in both 2020 and 2021, according to an investor presentation on Tuesday. That equates to less than 1% of global output, but slows the pace of the company’s expansion as an oversupply of rough diamonds weighs on the industry.
De Beers’s buyers have grown increasingly frustrated with the cost of rough stones as the price of polished gems slump. That’s led to wafer-thin margins and losses for some of the traders buying stones from De Beers and Russian rival Alrosa PJSC.
The crisis has spread to engulf the world’s diamond miners as well. De Beers, which dictates prices to its select group of clients, reported sales through November were more than $1.2 billion lower than the same period in 2018.
The company, which says it mines to meet demand, has responded by offering more flexibility to its customers, allowing them to reject some purchases. Last month, De Beers cut prices across the board by about 5%.
Even so, the company’s production is still set to rise to as much as 34 million carats next year, from 31 million carats in 2019.
Bloomberg
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GOLD FALL :: Investment demand for gold, which had slipped by 35 per cent in the July-September quarter, may decline further in the fourth quarter of 2019 as rural India has stayed away from investing in gold after the kharif crop harvest. Investment demand for gold in rural India, which picks up every year after harvesting of the kharif crop, has plunged 50-60 per cent this year compared with a year ago.
Crop loss due to heavy and unseasonal rains this year has kept farmers away from gold purchases. Farmers are now buying gold only for wedding purposes, and the ticket sizes are small. Of the 850-900 tonnes of gold consumed annually in India, rural consumption accounts for nearly 60 per cent.
U.S. Federal Reserve ::
Gold has managed to hold above $1,450 since there is some bargain hunting. This is a good entry level for the ones who missed out previously, Reduced expectations of further interest rate cuts by the Fed has weighed on spot gold prices.
Investors are closely watching U.S. data for signs on the health of the world’s largest economy, which could influence the U.S. Federal Reserve in its decision on further monetary easing.
Gold demand remained subdued in China this week against a backdrop of slowing economic growth, and in Hong Kong where protests continued, while prices in India flipped into discount as demand eased.
In Hong Kong, gold premiums remained unchanged at 30 cents to 50 cents an ounce range over benchmark prices, as people awaited district council elections on Sunday after months of unrest by pro-democracy protesters, which caused gold demand to weaken in the region.
YELLOW METAL SLUMP
:: Gold prices on Thursday fell Rs 47 to Rs 38,108 per 10 gram in futures trade as participants cut down their bets amid a weak global trend.
::On the Multi Commodity Exchange, gold prices for delivery in December fell by Rs 47, or 0.12 per cent, to Rs 38,108 per 10 gram in a business turnover of 1,876 lots.