-- Posted Monday, 23 August 2010 | | Source: GoldSeek.com
Gold got off to a slow start on Monday morning. It tried to go through $1,230 gain but pulled back in London to Fix at $1,227.00. After the Fix, but well ahead of New York, gold slipped another couple of Dollars leaving a directionless market waiting on the States. Once New York appeared on the horizon gold moved up $1. The U.S. gold market looks to U.S. economic news to guide them on gold prices. The housing numbers due out this week look as though they are going to more than disappoint the market.
With the gold price narrowing its trading range around $1,230 buyers and sellers appear to be coming to a balance at this level. This promises volatility, once the new direction is given.
The Euro is falling still and now stands at $1.2696: €1.
We are including an article [with the important conclusions for Subscribers] on why the gold market should not be called a ‘bull’ market in the next issue of the Gold Forecaster.
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Gold - Very Short-term
The Fix at $1,227 this morning shows that the trading range for gold has narrowed sharply to around $1,230, but today may well tend weaker. Both gold and silver remain risky today, but we expect a weaker bias in gold.
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Silver – Very Short-term
Silver is struggling to hold above $18.00 and now stands at $17.95. On balance we expect a negative day for silver.
Gold Price Drivers
We are just about at the end of August now and the European gold market comes to life then, alongside the gold buyers of Ramadan and those with post harvest profits. This represents the tide flowing fully in the gold market, irrespective of U.S. or European economic data. The floods in Pakistan are still wreaking their havoc and may stunt demand from that area. India is unaffected by the floods and are having a good harvest.
We see that long-term investors bought around four tonnes of gold last week. This, added to global demand is underpinning current prices. That’s why gold-positive news lifts the gold price so well, for there is little stock around when the gold season moves up the gears.
Hope that things are just not as bad as they seem has held so many markets above realistic levels, but we are now rapidly approaching the time when reality could impact hard on people’s views. We see so little by way of optimism at the moment at a time when stimulation of the housing market in particular, is sorely needed. Unfortunately there is no sign of it just yet. Gold will continue to be a wealth haven.
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Regards,
Julian D.W. Phillips
-- Posted Monday, 23 August 2010 | Digg This Article
| Source: GoldSeek.com
