Salient to Investors:
Jonathan Butler at Mitsubishi Intl (Europe) expects Fed tapering for the remainder of 2013 which would be bearish for gold. 65 percent of economists expect Fed tapering in September.
John Paulson cut his stake in the in the SPDR Gold Trust by 53 percent in Q2. Hedge funds et al net-bullish wagers on gold tripled since the end of June.
The US Mint sold 11,500 ounces of American Eagle gold coins in August versus 209,500 ounces in April. 1-month gold lease rates in London fell to a 2-month low on September 3 signaling increasing availability of metal.
18 of 31 analysts said gold said a new peak won’t be reached in the next 24 months, 11 said it will. Credit Suisse forecasts gold will average $1,180 in 2014, Societe Generale forecasts $1,150, and Bank of America Corp forecast $1,563.
Robin Bhar at Societe Generale said commodities should be supported by better economic data because it means better demand. Bhar said it is more sentiment driven that Fed tapering would be seen as negative – liquidity is a lifeblood of financial markets and commodity markets.
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