Kerr Mines Inc (KER)

[goldenpolarbear]

Overnight, gold prices edged higher on Thursday, as the dollar weakened, after subdued inflation data curbed investor expectations of a rate hike later this year while renewed geopolitical tensions lifted sentiment on the precious metal.

Gold resumed its climb higher, following a two-day consolidation, as data showed consumer spending fell short of expectations while inflation increased at its slowest pace in nearly two years, curbing investor expectation that the Federal will hike its benchmark rate later this year.

Consumer spending, which accounts for more than two-thirds of U.S. economic activity, increased 0.3%, the Commerce Department said on Thursday, falling short of expectations of a 0.4% increase.
In the 12 months through July, the core PCE price index increased 1.4% after advancing 1.5% in June. That was the smallest year-on-year increase since December 2015.

The duo of reports comes a day ahead of nonfarm payrolls, expected to show that the U.S. economy created roughly 180,000 jobs in July.

Gold is sensitive to moves lower in both bond yields and the U.S. dollar – A lower dollar makes gold cheaper for holders of foreign currency while a fall in U.S. rates, reduce the opportunity cost of holding non-yielding assets such as bullion.

Meanwhile, geopolitical tensions resurfaced, lifting demand for safe haven gold, following North Korea’s missile launch over Japan earlier this week, as South Korea's air force conducted an exercise with two U.S. nuclear-capable bombers above the Korean peninsula on Thursday.

Following its recent rally, gold is poised to post a monthly gain in August amid an increase in buying activity among money managers, after net bullish bets on gold rose to the highest in nine-months, according to a report from the Commodity Futures Trading Commission (CFTC) last week.

https://www.investing.com/news/commodities-news/gold-prices-gain-in-asia-as-china-caixin-pmi-jumps-524596

http://www.marketwired.com/press-release/eric-sprott-announces-holdings-in-kerr-mines-2200647.htm

That way of doing business is under threat as the world’s second-largest gold market faces Prime Minister Narendra Modi’s campaign to bring India’s informal economy to book. About three quarters of the estimated $45 billion of the precious metal that is traded in the country each year makes its way through thousands of family-run jewelry shops that have catered for centuries to the nation’s love of gold.

Modi’s financial reforms, including demonetization and a new goods and services tax, combined with a younger generation that shops online, may usher in a wave of takeovers and mergers by big state-wide and national chains as small shops are swallowed up or closed.

“The one story that we hear is that the business is becoming problematic for smaller jewelers,” said Chirag Sheth, an analyst at London-based precious metals consultancy Metals Focus Ltd. “The bigger jewelers have deeper pockets, they have larger shops, better designs and better margins. It is very difficult for a smaller guy to compete.”

Modi in November banned higher denomination notes to bring unaccounted cash back into the system and introduced tougher proof of identity for purchases, capped the amount of cash used in transactions and topped it off with the uniform goods and services tax last month.

An overhaul of the fragmented industry is also on the cards with the government said to be planning a new policy on gold that will bolster confidence among consumers, where the gifting of gold at weddings and festivals or its purchase as a store of value are deeply held traditions. Fixing quality standards and allowing supply chains to be easily tracked are ways to enhance trust.

https://www.bloomberg.com/news/articles/2017-08-29/the-battle-for-india-s-45-billion-gold-industry-has-begun