Gold quiet in light summer trade
Gold prices did not do a heck of a lot today as trading interest in
gold and other markets appears to be a bit on the slow side. This could
likely be attributed to the fact that summer is winding down for many as
kids get ready to go back to school.Many are likely trying to squeeze
in a little more summer break before getting back into daily routines.
Things have also been quieter on the headline and geopolitical front in recent days. No new major headlines have hit markets, and it also seems that investors are patiently waiting to see if the stock market starts to recover or if there is more downside in the coming weeks.Even with the market gaining back some lost ground, it seems that risk aversion is still prevalent. German five year bond yields remain low as investors snatch up the comfort of these instruments.
Gold prices are staying above the psychologically important $1300 level-at least for now. While the fact that the bears have not been able to take prices lower may be of note, it is equally worth noting the fact that the bulls have not been able to get much done either. Gold remains sideways and range bound until proven otherwise. The gold and precious metals markets will likely continue to watch the equities markets for signs of trouble as well as the geopolitical front for key headlines or signs of escalation. The longer the gold market remains in this sideways trading range, the greater the potential likelihood of an eventual breakout that could be significant in nature.
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12 Aug 2014 | Categories: Gold