-- Posted Friday, 1 July 2011 | | Disqus

Gold lost ground yesterday and is weak again this morning. The risk trade gathered strength as traders took a bullish view on the global outlook. Greek progress outweighed concerns over China's slow down in manufacturing, as represented by the Chinese Purchasing Managers Index's lowest number in 20 months. Continuing inflation concerns across Asia are prompting central banks to engage in monetary tightening. China's inflation is still uncomfortably high, standing tall at 5.5%, which exceeds official targets of 4% by a considerable margin. Oil is lower at $94.35. compressed by lower Chinese demand.

China continues to be the economic growth story of the past decade. How it responds to the oncoming fiscal stresses, unemployment concerns, civil unrest and an increasingly mobilised population is anyone's guess. Transitioning from the world's biggest producer to one of the world's biggest consumers without agonising and painful economic contractions is a worry. Gold is being accumulated in record amounts by the Chinese public - this should have a positive net stabilising effect.

GOLD
Gold is trading lower at $1,493.71/oz., €1,028.16/oz and £931.27/oz. Support is forming up at $1,491/oz, with retracement to $1485/oz very possible.

SILVER
Silver is trading lower at $34.25/oz, €25.58/oz and £21.29/oz.

From the GoldCore Trading Desk: GoldCore traders report a slight sentiment shift in client outlook, shifting more to the longer-term debate over economic growth, may be indicative of reducing immediate concerns over Greece. GoldCore has recently secured significant capacity in 1 oz gold bar format, interest is high as premiums nice and tight.

Mark is travelling on business, this market update has been authored by Stephen Flood.

http://www.goldcore.com/

-- Posted Friday, 1 July 2011 | Digg This Article | Source: GoldSeek.com

comments powered by Disqus
Previous Articles

© 1995 - 2019

Live GoldSeek Visitor Map | Disclaimer