Market Sentiment shifting

Sure was very positive news on the physical front. Looks like it is picking up momemtum to surpass last year.

India and China on pace to buy more this year and so are the Central Banks, basically increasing demand on all fronts yet the paper Gold price goes down. Those paper shorts are starting to tremble, I heard there is a rift developing in the Bullion Banks, as some are going to the long side.

I updated my charts in the Gold and Precious Metal sector under Interest Blog

Just in - World Gold Council said on Thursday.

Overall demand reached 1,121 tonnes in the last quarter, up 8 percent year on year to its highest since the second quarter of 2013. The rise was tempered by increased outflows from bullion-backed exchange-traded funds, however.

Bar and coin buying more than tripled in the United States to a five-year high of 32.7 tonnes, and rose 70 percent in China and 35 percent in Europe. That followed a more than 6 percent slide in spot gold prices in July, their biggest monthly drop in two years. ...

However, outflows from gold ETFs -- popular investment vehicles that issue securities backed by physical metal -- increased by 24 tonnes year on year to 65.9 tonnes, helping to offset the rise in demand elsewhere

Very surprising the big physical demand in the US, seems the swich from paper to physical continues

Looks like Gold will end down today, another record for the history books. That is down 16 of last 18 days, I heard that 15 out of 17 never happened before

This is a very interesting article and great read. The 7 biggest lies about Gold (that are believed)

www.moneymetals.com/news/2015/10/22/lies-about-gold-000778

Looks like China will have direct influence on London Gold fix - Chinese government owns majority interest in China Construction Bank that will join the twice-daily electronic auction process to set the benchmark price of gold, its operator Intercontinental Exchange said in a statement on Thursday.

CCB on Wednesday confirmed it would be the second Chinese company to gain access to the 138-year old London Metal Exchange's trading floor with the acquisition of a majority stake in UK metals trading firm Metdist Trading Ltd.

www.reuters.com/article/2015/10/22/china...dUSL8N12M44H20151022

NEW DELHI, India -- Prime Minister Narendra Modi will launch the first Indian gold coin bearing Ashok Chakra and other schemes on November 5.

Security Printing and Minting Corp. of India Ltd will be minting these coins, the sources said, and 20,000 coins of 5 grams and 30,000 coins of 10 grams would be made available, the sources said. ...

Austrian Central Banks wants to repratriat 50% of their gold back from the Bank of England, worth about $3.5 billion but it will take 5 years. Again this is ludicruis, as it means the physical gold is simply not available, it was sold a long time ago

Kitco intervieded - Peter Mooslechner, executive director of the Österreichische Nationalbank, at the London Bullion Market Association (LBMA) conference in Vienna, to get his take on the matter

‘It was of big importance during the period of the Brenton Woods system…but it has now become part of a much greater monetary and economic area,’ he noted. ‘It has transformed into something like the basic part of reserves to be held as a liquidity buffer or for security reasons, but not so much as an active part of management of gold reserves anymore,"

www.kitco.com/news/video/show/LBMA-2015/...es-Gold-Repatriation

The London Bullion Market Association, which oversees trading and is holding its annual conference starting Monday, has invited proposals on how to improve the city's over-the-counter market and has suggested more detailed reporting of transactions. At the same time, the World Gold Council has also agreed with five banks to talk about starting standardized central clearing and listed derivatives.

London's market, where custom deals are made on delivery times and size, has come under focus as regulators around the world scrutinized commodities trading and lawmakers have pressed for tighter bank controls.

www.bloomberg.com/news/articles/2015-10-...ullion-world-gathers

Gold has climbed about $80 in the last 2 weeks and appears market sentiment has changed since the Fed backed away on interest rates