Gold rose $3.80 or 0.23% in New York yesterday and closed at $1,666.10/oz. However, there were more peculiar goings on in the gold market which saw one massive sell order knock prices lower, prior to gold gathering itself and moving higher.
Dollar prices to buy gold hovered just below $1,680 per ounce Friday morning in London – back at levels last seen 10 days ago – as stock markets and industrial commodities ticked lower and government bonds gained.
Silver prices have been boosted by investment and industrial demand this year, the Silver Institute has reported. Sturdy investment demand has pushed the silver price up 20% in the first ten weeks of 2012.
Gold prices briefly fell back below $1,700 per ounce for the second time in a week during Monday morning's London trade, as stocks, commodities and the euro all dipped lower before recovering some ground, following news that China has cut its official target for growth.
Soaring investment demand, continued industrial use, a growing supply shortage, and falling ore quality all signal a sharply bullish outlook for the "poor man's precious metal." So, how can you position yourself to profit from silver's coming advance without exposing yourself to the excessive risk?
A pattern of gold trading higher in Asia and falling just before or at the open in Europe continued again today. Gold ticked a little higher in Asian trade prior to sharp falls before the open at 0800 GMT when gold fell quickly fell from $1,729/oz to $1,715/oz.
This is a tough market to trade in, and I don't want to get chopped around or do any heavy lifting. I'm going to focus my attention on high probability, low risk trade setups until directional biased trades make more sense.
Volatility continued in unabated fashion in the precious metals markets overnight as gold and silver each gave up more than 2% in value on the heels of a firming US dollar. Thursday's gains in gold largely evaporated.
One market trend that seems to be attracting more and more attention is the large performance gap between gold bullion and gold stocks. The price of gold bullion has increased roughly 28% in 2011, while the S&P/TSX Gold Index was recently down 1%.
After July 15, new legislation takes effect banning US over-the-counter (OTC) trading of metals by individual (retail) investors and traders. If you trade these products and would like exposure to the metals markets, you still have options to do so.