Quotes from Commerzbank Corporates & Markets:
-The gold price is trading more firmly this morning at $1,215 per troy ounce. Physical gold demand appears to be picking up again now that Chinese traders have returned after the New Year celebrations. This is reflected in the premiums being paid on the Shanghai Gold Exchange, which have risen to $5-6 per troy ounce as compared with international prices.
-Before the break for the New Year they were $2 lower. Further economic figures will be published in the US this afternoon, such as consumer prices for example.
-Because of the sharp year-on-year fall in oil prices in January, they could have dipped into negative territory for the first time since October 2009, which would contribute to higher real interest rates in the US. This would in turn have a negative impact on gold, as it increases the opportunity costs of holding gold.
