Tsuen Wan International: Gold prices well supported by macro environment says Barclays.

June 20, 2011 - PRLog -- In a recent update available to Tsuen Wan International, the bank says gold prices remain well supported despite the seasonal weakness in physical demand.

On the supply side, China's Ministry of Industry and Information Technology declared that its gold output rose by 4.24 per cent year on year for the year to April and was up 5.05 per cent year on year at 29.819 tonnes in April alone.


“Even though supply from China remains healthy, it is outpaced by its demand growth, in turn keeping China a net importer of gold, a dynamic unlikely to shift in the near term, in our view.” The Barclays update said.


Prices dropped slightly across the complex in recent days led by the weakness in palladium. Palladium prices lost 2.5 per cent to close at $752.4 an ounce, its weakest close this month as concerns over a drop in demand continue to weigh upon prices. Platinum prices fell by per cent to settle at $1752 an ounce, its lowest close since 23rd May, Tsuen Wan International data shows.

The PGMs have been caught between supply side constraints and physical demand, from China in particular, providing support on the downside but a demand drop off capping the upside. Short term investor interest has turned positive in recent days with speculative interest in Nymex palladium climbing to a three month high.

Gold prices are expected to remain in positive territory for the remainder of the year

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