Spot market gold prices fell briefly below $1,690 an ounce Wednesday morning in London trading, remaining close to six-month highs, while stocks and commodities were also broadly flat, ahead of tomorrow's policy announcement from the European Central Bank.
Spot market gold prices traded just above $1,660 an ounce during Tuesday morning's London session, a few dollars down on last week's close, while stocks and commodities were also broadly flat on the day and US Treasuries gained.
Is it risk on, or risk off? Are we looking at a fear trade situation where gold is the only true safe haven asset? Or will the world’s central banks open the monetary floodgates as many suspect is going to happen?
Precious metals headed a bit lower early this morning while noble metals headed in the opposite direction and built on yesterday’s hefty gains. Spot gold was quoted at $1,612 per ounce while spot silver was indicated at $28.05 in early trading.
Spot market prices for buying gold hovered just above $1,600 per ounce Thursday morning in London, well within their trading range of recent weeks, having risen back above that level amid ongoing speculation over quantitative easing.
Gold edged down on Wednesday on profit taking after sustaining three days of gains which saw gold creep slowly above the $1,600/oz. level again. Recent dollar strength and a lack of clarity may be partly to blame for gold’s lack of gains recently.
The precious metals conspiracy camp is possibly about to be dealt another blow by the near-completion of the audit (yes, audit) of the USA’s gold being held at the NY Fed. The Treasury Department has been counting and drilling and drilling and counting the thousands of bullion ingots.
Gold inched up on Tuesday ahead of Federal Reserve Chairman Ben Bernanke's Congressional testimony today and Wednesday which should provide the market with information as to whether the US central bank will flood the market with more US paper.
Sharp losses in the gold mining sector Friday and last week could presage further weakness today but the higher weekly closes for gold and silver were constructive from a technical perspective. After initial gains in Asia, gold fell in Asian trading.
The period of seasonal strength for gold bullion has arrived. The optimal time to invest in gold bullion from a seasonal perspective is today, July 12. The summer months normally see seasonal weakness and it is thus a good time to buy on the seasonal dip.