India Gold - Customer Zone - Reuters

COMMODITIES GOLD GOLD: REBOUNDS WILL RISK SHIVER BATTERED AVERSION ON JAPAN AFTER BY BANISH DEBT SHARPEST U.S. CREDIT DOWNGRADE CORRECTION LOSS DOWNGRADE SINCE DESPITE FEARS? MAY CORRECTION FEARS AUGUST 2011
* "Gold is a widely traded, universally accepted hard asset and a proven safe haven instrument," it said. "Investors have traditionally
turned to it when faith in government policies - as reflected in a government's credit rating, the value of its currency
and demand for its bonds, and even in levels of social unrest - deteriorates."
* The bank reiterated its decision on Aug. 8 to lift its 2011 gold price forecast to $1,590 an ounce from $1,525, raise its price
view for 2012 to $1,625 from $1,500, and increase its 2013 gold forecast to $1,550 from $1,450.
BANK OF AMERICA-MERRILL LYNCH (AUG 9)
* Bank of America-Merrill Lynch said in a research note it was revising its 12-month gold target to $2,000 an ounce.
* "Physical gold is the ultimate collateral because it has no credit risk, so emerging market central banks have been diversifying
their foreign exchange reserves into gold and other non-dollar, non-euro assets in recent quarters," it said.
* "Looking ahead, the deterioration in credit quality in Europe and the U.S. coupled with an increased probability of QE3
means these pressures will continue," it added.
JPMORGAN (AUG 8)
* JPMorgan said rising expectations that the financial crisis would flare up once more following Standard & Poor's downgrade
of the United States' credit rating last week had caused it to lift its price view on gold this year.
* "Before the downgrade, our view was that cash gold could average $1,800 per ounce by year end," the bank said in a note.
"This view will likely now prove to be too conservative: spot gold could drive to $2,500 per ounce or higher, albeit on very high
volatility."
GOLDMAN SACHS (AUG 7)
* Goldman Sachs said it was raising its gold price forecasts to $1,645 an ounce, $1,730 an ounce, and $1,860 an ounce on a
three, six, and 12-month horizon respectively. "With our U.S. economics team now lowering their outlook for U.S. economic
growth to 1.7 percent in 2011 and 2.1 percent in 2012, we now expect real interest rates will remain lower for longer, and we are
now raising our gold price forecasts," it said.
* "The recent escalation of sovereign debt concerns suggests that the near-term risk to our new forecast is skewed to the upside,
and we continue to recommend long trading positions in gold," it added.
UBS (AUG 3)
* UBS said it was lifting its one-month gold forecast to $1,725 from $1,575 previously, and its three-month price view to $1,850
from $1,600. "With U.S. growth strait-jacketed and as expectations for some form of Fed easing grow, the macro climate remains
gold-supportive," it said in a note on Aug. 3. "There are still valid concerns about global growth, neither European nor
U.S. debt issues have been comprehensively dealt with and European peripheral bond spreads reached record levels yesterday."
* "From the potential for quantitative easing in the UK, to the reality that U.S. rate hikes are more than 12 months away, to
continuing central bank diversification towards gold, there's no shortage of positives in the months ahead."
Vietnam to allow gold imports to cool local prices
By Tran Thuy
HANOI, Aug 23 (Reuters) -
V ietnam's
central bank has authorised at least one domestic firm to import more gold to help cool soaring prices and
state-run newspapers said it may open the market to unlimited imports to narrow the gap between local and world
quotes.
Central bank officials, including Governor Nguyen Van Binh, could not be reached for an immediate comment, but
sources with knowledge of a meeting between Binh and senior editors on Tuesday morning to discuss gold-related policies
said the issue of allowing unlimited imports did not come up.
However, the State Bank of Vietnam has agreed to allow Saigon Jewelry Co (SJC), one of the country's biggest gold trading
companies, to import gold based on its demand, said Nguyen Cong Tuong, deputy director of sales at SJC.
The move would help narrow the difference between domestic and international prices, which on Tuesday was around $45 an
ounce. Analysts say the gap fuels gold smuggling and speculation.
"State Bank's permission to import has effectively cut the domestic price from up to $100 higher than international price per
tael to a few hundred thousand dong," SJC's Tuong said.
Early this month, the State Bank of Vietnam approved 5 tonnes of gold imports and said it could double the quantity soon as
surging prices sparked a frenzy at gold dealers and jewellers.
The State Bank said in a statement on Tuesday three tonnes of gold had been imported by far.
The measures come as gold prices in Vietnam rose to fresh record highs in recent days as world prices surged to all-time
highs above $1,910 on Tuesday, due to gold's safe-haven allure amid nagging fears about the world economy.
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