Quality Products International

Gold prices remain steady

by on May.31, 2011, under General News

QPI Ltd Commodities division is continuing to work with a number of commodities including Coal and some food items such as Peanuts.

By far the most interesting at present is our work with physical Gold.

It is interesting to see continued media coverage talking about macro economic reasons for gold to remain steady and probably continue to increase.

Gold Steady on Greece Debt Fear

Gold held steady on Monday, buoyed by the ongoing debt crisis in the euro zone, while silver trimmed gains as a hike in margins by the Shanghai Gold Exchange kept sentiment in check.

Fung said $1,500 should offer strong support to gold, and prices are likely to reach $1,600 by the end of the year as investors continue to buy bullion to protect themselves against economic uncertainties, a view echoed by other market players.

“Gold is likely to slowly move up during the summer unless we see big headlines, such as the U.S. raising interest rates earlier than expected.” Sluggish consumer spending and a seven-month low pending home sales in April stoke worries that the U.S. economic recovery was losing momentum at beginning of the second quarter.

Technical analysis suggested that spot gold may retrace to $1,513, said Reuters market analyst Wang Tao.

Hand full of gold, QPI Ltd

Kilo Bar of .9999 pure gold

Full Article: CNBC

Our experience at QPI Ltd and some of our key associates in this trade, is that we have many, many people looking for Gold, however sources of fresh supply of gold remains limited. Much of the gold trade is currently “vault to vault” cycling of existing stock.

We recently visited Africa to asses new suppliers. Many of course were simple scam operators, and some proved to be legitimate, however all are limited in what they can offer.

While I am not in a position to speak with authority about economics, it would appear that the basic supply and demand theory would keep upward pressure on gold at least at the micro economic “coal face”.

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