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Thomson Reuters GFMS Key Gold Market Developments:

Date of Release: 4th May 2012

IMPORTANT NOTE: The following is for informational purposes only and was developed by Thomson Reuters GFMS. It does not take into account the investment objectives, financial situation or particular needs of any particular person. Information is from sources believed to be reliable, but is not guaranteed as to its accuracy or completeness. Opinions and estimates are the judgment of Thomson Reuters GFMS and are subject to change without notice. Distribution of this information does not constitute agreement with, or an endorsement of, the views expressed. Obviously, future outcomes are impossible to predict with certainty. Investors should obtain advice based on their own individual circumstances and understand the risks before making any investment decisions.

Gold suffered from another major fall in early april, as the price slumped from an opening of $1,677.50 to a three-month low of $1,621 on the 4th. Thereafter, while it immediately rebounded, prices failed to breach $1,670, with the yellow metal oscillating roughly between $1,630 and $1,660 for the rest of the month.

In April, gold fell in every major currency bar the rupee, the rand and the swiss franc. Due to the renewed weakness in the indian rupee, the local gold price hit a fresh all-time-high at the end of april.

Consistent with the trend that developed in late february, investors continued to cut their long positions on comex in april, as net ‘investor’ long positions dropped by 10% or 55 tonnes from 27th March to 24th april.

Gold eTfs also witnessed some modest outflows. at end-april, combined gold eTf holdings amounted to 2,408 tonnes, down by some 30 tonnes from the peak registered on 19th March 2012.

Additional Information

• Gold Market Outlook for Next Three Months
• Gold Market News