Continued Selling From Asia Pressures Gold

Shanghai (June26)  Gold fell overnight on continued selling out of Asia, says TD Securities. “The Shanghai gold arbitrage, a good indicator for physical demand, was trading negative $2-4, confirming that demand is exceptionally poor,” TDS says. “The other driver has been the news that China's chief auditor has discovered $15 billion of loans backed by falsified gold transactions, leading to a fear that what little collateral there may be left might be sold to pay for the loans.” However, TDS adds, “we would note that when copper had a similar story, the initial choppiness in the market calmed down and there was little material impact from the fraud story.” As of 8:28 a.m. EDT, Comex August gold was $8.70 softer at $1,313.90 an ounce after an earlier low of $1,306.80.

Source:  KITCO NEWS