TNAG-1267-FCO40-1616-Economic-situation-in-Hong-Kong-1983 — Page 261

FCO40 Hong Kong Department Records 聯邦事務部香港部檔案 All

8.16

Trading on the loco London gold market was erratic,

From US$455 per ounce at the

with prices fluctuating widely.

end of 1982, the price rose steadily to reach US$507 on 3 February, influenced by the anticipation of lower US interest

rates. It then fell sharply from US$506 an ounce on

21 February to US$406 an ounce on 1 March, responding to the declines in oil prices. The price then stabilized within a

narrow range of US$420 and US$440 until a sharp fall

re-emerged in early June which pushed the price down again to

US$401 on 8 June, the lowest since November 1982. This fall

was accounted for by the strength of the US dollar and

persistently high US interest rates. Up until the end of

June, the metal was traded in the range of between US$400 and

US$420 an ounce, closing at

at US$417 an ounce, down 88 from

US$455 an ounce recorded at the end of 1982.

3.17

The tael price of gold on the Chinese Gold and Silver Exchange showed a similar pattern in the first three

months. Having risen to HK$3,956 per tael on 16 February, the

price plunged to HK$3,196 by 1 March. It then moved within a

narrow range of HK$3,280 and HK$3,450 in the remainder of

March. In the second quarter, the tael price was boosted by

the weakening Hong Kong dollar, to HK $3,718 on 31 May. It subsequently fell back on the easing of the loco London price and on the strengthening of the Hong Kong dollar, to HK$3,557

at the end of June, which was still HK $65 per tael higher than

at the end of 1982.

33

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