On Monday, gold continued its upward climb beyond the $3,300 mark to reach fresh record levels beyond $3,400 on the Comex in New York. UK bullion markets remained closed on Monday due to the Easter holiday.
Bullion reached new price highs in China in what many analysts referred to as the “Chinese frenzy” for gold. Gold recorded its eighth straight high hitting $109.7 (800 yuan) for each gram.
President Trump also launched an attack against Jerome Powell, the U.S. Fed chair, complaining about the Fed’s delay to make further interest rate cuts as the possibility of higher inflation increased amid the growing trade war between America and China. Trump even mentioned that he couldn’t wait to sack the Fed chair as the dollar index tumbles due to the trade war.
The current rise of gold over the Easter Week reached 2.3% after bullion hit $3,357 and then retreated by $50 as the London Metal Exchange closed for Easter.
In Shanghai, gold rose 1.1% on Monday marking a sixth straight record high for the precious metal. That increase meant that the premium for shipping gold to China remained at $20 for each ounce, and this was approximately twice the usual premium for gold shipments to the Asian country which is the leading importer and miner of gold. China’s central bank is also the leading purchaser of gold among all central banks in the world.
Bloomberg reported on Monday that gold-trading activity reached feverish levels in China as tensions between China and America showed no sign of slowing down. Bloomberg also revealed that authorities in China are continuing to issue new licenses to firms interested in importing the precious metal into the country. These import licenses are geared at augmenting the workloads of banks that have traditionally monopolized gold trade in the country.
It should be noted that a pilot program was initiated in China allowing insurance firms to make investments in gold in order to optimize investment portfolios. This pilot program has boosted gold trading in the country.
Last spring, China directed banks to stop opening new accounts intended to trade in gold. As a result of this directive, cash inflows into gold ETFs almost doubled according to records depicting trading activity from March last year. However, trust funds focusing on gold in China only hold 4% of the bullion needed to back gold-linked ETFs around the world.
As the global hunger for gold climbs to new levels, gold extraction companies like GEMXX Corp. (OTC: GEMZ) are poised to optimize value for their stockholders.
NOTE TO INVESTORS: The latest news and updates relating to GEMXX Corp. (OTC: GEMZ) are available in the company’s newsroom at https://ibn.fm/GEMZ
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