Weekly Gold Report
Week High….$1218.80 ……7/13
This week’s Gold market covered a very volatile $33.00 range as the summer dull-drums expose the lack of confidence from investors globally. This week has found Gold trading in a very technical range as lack of buying momentum has forced the bulls to take profits as the high price of Gold has cooled the demand for physical Gold. There is still an insatiable demand for Gold world-wide but with the economic uncertainty savvier investors are looking for a price dip before re-entering the market.
The gold market is waiting for some fundamental news to help guide traders seeking direction. The Jewelers of Indian will be looking to re-stock for Their upcoming Wedding and Festival season beginning in September. The jewelers of India have been very quite since May and the celebration of Akshaya Tritiya which is probably the most auspicious Hindu Holiday for the giving of Gold as gifts. The higher prices have pushed India’s investors into Gold ETF’s…..(up 76% in June) However since India is the world’s largest consumer of Gold I expect the jewelers of India will buy Gold for the upcoming season’s no matter the price. Obviously They are side-lined hoping for a price dip….
There has been a lot of noteworthy headlines this week…including 29,000 more Americans found jobs… The following are several more news worthy comments…
Federal Reserve Chairman Ben Bernanke while delivering a speech was quoted as saying “Small businesses are central to creating jobs in our economy” adding “they employ roughly one – half of all Americans and account for about 60% of gross job creation”…….. He then stated “ we have also been focused on strengthening the nation’s banks, so that they can resume normal lending as quickly as possible”… Creating jobs and helping small business is the road to economic recovery in my opinion….
It has certainly become evident that many investors disposable income has become their priority income.
As the summer markets continue I expect the volatility and the choppy conditions to remain. As we all remember the Gold made it’s mammoth run last year…after Labor Day…
Mike Daly/ Gold Specialist
*THERE IS EXTREME RISK TRADING FUTURES, OPTIONS, and FOREX*