Goldcore notes, Premiums for gold bullion bars in Asia are rising again and are at their highest since October in Hong Kong and Singapore. Premiums are at $2.15/oz in Hong Kong and $1.65/oz in Singapore. Bullion’s strength was also attributed to the euro’s 16 month low, with Fitch warning the ECB to purchase assets to try to stabilize the euro.
A stronger rupee has boosted the purchasing power of gold bullion consumers in India. This is in the run up for the Indian Wedding Season which resumes January 15th and continues until April, leaving a few weeks break for a period that is considered bad luck for nuptials. Chinese demand will weaken next week as many factories and businesses are set to close for the Lunar New Year’s celebrations.
All eyes will now turn to the FED meeting January 25th.
1/25/2012 FED FOMC Interest Rate Decision
January is capped off with the U.S. Federal Reserve making a decision on interest rates on January 25, 2012. Obviously through a Big Ben guarantee, we anticipate there to be no change throughout 2012 with the Federal funds rate remaining close to 0%. The Fed statements surrounding the FOMC meetings will be the key market movers for 2012. Any additional asset purchases or QE3 lingo will be a sure rocket launch for precious metals.