The absence of substantial demand could hurt gold prices even as investment demand stays strong.
"[Scrap] gold ... was making its way onto India's shopkeepers' shelves," says Nadler. "Physical buyers in India ... turned away from buying the precious metal for the moment, as the perception that gold prices are too high and that they might correct soon dented festival-related shopping enthusiasm."
In other gold news, the
Wall Street Journal
will close its commodity proprietary trading desk to meet with the recent financial reform law. Its prop desk is in London and its dismantling might force liquidations in the gold futures market.
were settled down 3 cents at $19.39 while copper closed up 10 cents to $3.47.
Base metals were rallying Wednesday
on the news the
China's manufacturing rose in August
to 51.7 with any number over 50 indicating activity.
Gold mining stocks
, a risky but potentially profitable way to
, were mixed Wednesday.
was up 0.28% to $42.17 while
popped 2.25% to $16.54. Other gold stocks
were trading at $6.25 and $14.18, respectively.
Written by Alix Steel in
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