Analysts cited comments from a U.S. Fed policymaker on a likely reduction next month in the pace of asset purchases for a new one-month low in gold Wednesday morning, with prices eventually bouncing $15 from $1,262 per ounce as world stock markets also slipped.
September silver futures continued to impress yesterday, reaching a seven-week high. The gold-silver ratio should be closely watched at present, having been around 65-66 it is now closer to 61 as silver holds its own.
Whilst the Indian government may be getting their way with a reduction in the current account deficit, it seems state gold controls are just leading some citizens into criminal activity and unemployment.
The midweek session in precious metals opened with some price softness across the complex but the situation soon shifted a bit towards the firmer side of prices (at least in gold which rose to near $1,620 an ounce) as poor US May retail sales data once again rekindled QE “Fedspectations.”
Spot metals dealings in New York this morning opened on the plus side for all components in the complex but gold. The yellow metal was quoted at $1,591 down about $3 while silver climbed 15 cents to $28.68 the ounce.
Gold prices added over 1% ahead of the ECB rate-setting meeting this morning as the post US jobs data-sparked Friday rally continued to unfold. The gold market’s net speculative length is at or very near multi-year lows.