The Famous Giant Gold Coin

Gold has begun to climb for the first time in four days as the US dollar comes off seven weekly highs ahead of the December non-farm payrolls data release, later today. Investors have booked profits ahead of the employment data later today, helping to support the gold price.

In other news, the world’s largest gold coin is taking its first trip outside of Australia. The coin, which weighs 1,012 kg and was minted by the Perth Mint, is now on show in Hong Kong. The decision to show the coin in Hong Kong is a strategic move given the popularity of the Perth Mint’s coins both in Hong Kong and China. The interest surrounding this coin is telling, as with physical demand we continue to be told that interest in gold is old fashioned and simple, however the existence of a giant gold coin sets something off in all of us.

Overnight physical buying climbed in China. Volumes on the Shanghai Gold Exchange reached 8 month highs overnight. Premiums climbed to $19 from $17.

The Shanghai Gold Exchange, the world’s largest physical gold exchange, has announced that 2014 will see the launch of an international board in the city’s pilot free trade zone. With the aim of attracting foreign investors to China’s gold market, contracts on the board will be priced in yuan rather than foreign currencies. This will be a major move for the international physical gold market. China is now the world’s biggest gold importer, all spot gold bought and sold in the country passes through the SGE.

As we reported yesterday both the Bank of England and the European Central Bank held their first monetary policy meetings of the year. Both maintained rates at record lows. Draghi’s post-meeting press conference was decidedly dovish where he expressed concerns over the single-currency union’s low inflation rate.