Robust Demand for Bullion in Europe, Middle East and China Again - Very Little Selling

[pmbug]

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Last week's price drop has stimulated demand from Europe and the Middle East and Asia with GoldCore and other dealers confirming still robust demand and little or no selling of bullion.

Gold bar premiums in Singapore and Hong Kong rose from last week, as demand is expected to increase during the upcoming Chinese New Year holidays and buying interest has returned after last week’s price drop. Premiums in India have also increased.

Demand from China ahead of the Lunar New Year in late January should help support prices. While demand may not be on the massive scale seen last year – demand will likely be very high again which makes gold well supported at these levels.

Reuters report that Societe Generale points out in a note this morning that turnover on the Shanghai Gold Exchange was at record levels yesterday morning. "After an average daily turnover of 6.5 tonnes during November, volumes have averaged 11.5 tonnes daily since the 12 December, when gold had dropped below $1,700," Soc Gen said.

This means that average daily turnover on the SGE is up a significant 77% from levels seen in November suggesting that China’s influence on the gold market may be reasserted in the coming days.
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More: http://www.goldcore.com/goldcore_bl...ddle-east-and-china-again-very-little-selling

It was just two weeks ago that reports of demand for physical gold in India was waning on the weakness of the Rupee were breaking news.

It's been about a month and a half since I saw any news of the Shanghai Gold Exchange. Interesting to track it's influence in the physical market in anticipation of PAGE rolling out in June.