We believe that investors are likely to interpret this ... as being positive for the gold market as it will raise speculation that China will increase its gold holdings.
"John Reade" was an Irish people/Irish-born Canada/Canadian journalist, essayist, and poet once considered "the grand old man of Canadians/Canadian letters." He is best known as the literary editor of the The Gazette (Montreal)/Montreal Gazette, a position he held for almost 50 years.
More John Reade on Wikipedia.After the rapid rally in gold over the past few months a correction is almost inevitable at some point and this could be it.
The risk remains that the rand will be at the higher end of people's forecasts.
Gold has started 2006 in a positive manner and we suspect that this strength will continue in the near term.
Platinum has been much more resilient than we expected.
We expect that funds held 17-18 million ounces of gross long positions as of Tuesday. If the net long position is more than this then we will become even more bearish; only a release that shows that the net long positions declined from the 15 million ounces reported last week would make us positive about the short-term outlook for gold.
In an environment where mine supply is broadly static, central bank sales effectively constrained and scrap supply declining, strong physical demand is genuinely important.
The release of the COTR report tonight is likely to be the final piece of information we need to decide to sell gold.
But the other factor is that we have indications that Chinese demand for platinum is recovering despite prices being stable between $845 and $880.
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