The spread of strike action to gold miners from platinum and palladium miners has stoked gold supply concerns. Some investors appear to have been hedging their mining company equity exposures by increasing their direct holding of metals. Holdings of gold and platinum ETPs have risen to an all-time high.
Key events to watch this week: Focus on the central banks
The minutes from the meeting in which FOMC members decided to embark on QE3 will be released this week.
The minutes will give a view of the thought process behind the decision to move ahead with another round of quantitative and other easing policies.
The BoE and ECB will have policy meetings this week. While changes in policy rates are not expected, the ECB’s press conference may give further details about its policy of potential “unlimited” purchases of European sovereign bonds.
ETFS Physical Swiss Gold Shares (NYSEArca: SGOL)