CCTV Script 23/04/2013
This is the script of CNBC's news report for China's CCTV on April 23, Tuesday.
Welcome to CNBC Business Daily.
Gold turned lower on Tuesday after rising to a 1-week high on bargain hunting.
The precious metal is regaining ground after hitting a two-year low last week.
Analysts say that outflows from Gold ETFs are continuing to hurt confidence in the precious metal.
And our next guest says that he is not seeing much upside in the gold trade.
[Sound on tape by Andrew Su, CEO, Compass Global Markets: I think that we will have a dead cat bounce, at least in the next few days. But in the medium term, we are neutral gold. We need to see what's happening within the markets, and in particular, what's happening with quantitative easing in the US. We've taken most of our bets off the table.]
But could the decline in Gold be an indication of a weakening global economy? Well, one analyst told CNBC that the fall in commodity prices could simply be coincidental. Have a listen.
[Sound on tape by Michael Kurtz, Global Head Of Equity Strategy, Nomura: I think there's a big share of the market that still interpret this pullback in commodity prices in the context of a potential rollover in global growth or threat to a global recovery. It's kind of coincidental that the commodity price pullback occurred after we got that rather disappointing GDP number from China and in the immediate aftermath of a weak jobs number and the weak retail sales data out of the US.]
Despite a drop in HSBC's China Flash PMI number earlier today, gold managed to hold its ground.
China is the world's second-biggest gold buyer, and softening of the economy, could hurt physical demand for the bullion.
But our next analyst says that for now though, healthy demand for the physical bullion is helping stem gold's decline.
Have a listen.
[Sound on tape by Daniel Morgan, Global Commodities Analyst, UBS: It looks like the price has stabilized, it's a good thing for gold holders, and that's something we're looking for. One of the themes behind the stabilization seems to be physical demand. We've seen stories from China and India, that consumers are looking at this price as an attractive entry point for gold.]
Li Sixuan, from CNBC's Asia headquarters.