news.goldseek.com / By Frank Holmes / 28 November 2016
The best performing precious metal for the week was palladium, up 2.83 percent. China boasted imports of silver, platinum and palladium in October. In addition, vehicle sales in Europe are up 4.7 percent through October in 2016 versus a year ago. Global auto sales are tracking at over 3 percent, recovering from sub-2 percent growth in 2015.
With worries over a supply shortage due to Beijing’s efforts to restrict import licenses, gold premiums in China jumped to their highest in nearly three years this week, reports the Business Standard. One analyst with GFMS, Zhirui Ji, says potential restrictions on gold imports may have to do with limiting the outflows of the Chinese yuan, which touched an eight-and-a-half year low this week.
Swiss gold exports rose to 162.6 tons in October, reports Bloomberg, up from 147.4 tons in September. Shipments to India and Hong Kong also rose, while exports to China fell during the month. In Russia, October gold buying has reached the largest in a millennium, reports Zero Hedge. Commerzbank explains this humongous gold purchase as follows: “Clearly the central bank was taking advantage of the stronger ruble—which has made gold cheaper in local currency—to buy more gold.
The worst performing precious metal for the week was gold. Through Friday, Bloomberg reports that investors pulled out more than $1 billion from the biggest ETF backed by gold since the end of October. Holdings in ETFs are heading for the biggest monthly drop in nearly three years as the Federal Reserve prepares to hike interest rates. While gold has collapsed in November, “cheaper haven silver entered a bear market,” writes Bloomberg, as investors embrace risk on the back of Donald Trump’s pledge to increase infrastructure spending.