This morning’s New York trading action started off on the downside once again for the metals. Gold practically erased yesterday’s gains and dipped to near the $1,640 per ounce while silver also retreated from last night’s closing values and dropped to near $32.20 the ounce.
Commodity price risk that is now to the upside and Barclays Capital analysts believe that 2012 is going to be a good one for producers of industrial metals and precious metals, Kevin Norrish, the bank’s managing director of commodities research, told the Investing in African Mining Indaba here Monday.
The spot price of gold bullion fell back to $1,516 per ounce Tuesday morning in London - nearly 4% below last month's record high - after recovering half of Monday's 1.3% drop. Commodity markets were mixed while stocks rose.
Based on current economic factors, we expect gold prices will end the year somewhere between $1,700 and $2,000 per ounce. Silver and platinum prices will experience similar growth based on investor demand.
The warning bells are going off not so much because an intermediate degree correction has begun, those happen like clockwork about every 20-25 weeks, but because of how quickly this daily cycle has topped - in only three days.