Gold premiums in China at 3-year high as Indian demand stays weak

Section:

By Sethuraman N. .R and Rajendra Jadhav
Reuters
Friday, December 16, 2016

Gold premiums in China surged to their highest in nearly three years this week on fears of limited supply of the metal, while demand in India remained weak amid low prices due to a severe cash crunch following the government's demonetisation move.

The supply shortage, traders said, was due to Beijing's efforts to restrict import licenses.

The import curbs may be part of China's efforts to limit yuan outflows after the currency's slide to its weakest in more than eight years, traders said.

China allows only 13 banks, including three foreign lenders, to import gold, according to the Shanghai Gold Exchange.

"The drag on supply is having an impact on pricing," said Cameron Alexander, an analyst with Thomson Reuters-owned metals consultancy GFMS.

Gold premiums in China against the international benchmark rose to over $40 an ounce this week, the highest since January 2014, according to Thomson Reuters data. Last week, premiums were quoted around $28-$30. ...

... For the remainder of the report:

http://www.reuters.com/article/asia-gold-demand-idUSL4N1EB2U8



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Market Analyst Fabrice Taylor Expects K92 Shares to Rise
as Company Commences Gold Production and Gains Cash Flow

Interviewed on Business News Network in Canada, market analyst and financial letter writer Fabrice Taylor said shares of K92 Mining (TSXV:KNT) are likely to rise, even amid declining gold prices, because the company has begun producing gold at its mine in Papua New Guinea:

http://www.bnn.ca/video/fabrice-taylor-discusses-k92-mining~1008356

Taylor cited the company's announcement here:

http://www.k92mining.com/2016/11/6114/



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