The later summer months between Independence and Labor Day are quite slow in the markets…precious metals like gold and silver bullion are no different.
After reaching a record high of nearly $1260 per ounce in early June, the last few weeks has seen the gold price slightly pullback and stabilize around $1200 an ounce.
This week (June 12th), has seen investors split between safe-haven assets and more risky ones. Reaching a weekly high of $1218 on Tuesday, gold pulled back slightly to the $1205-$1210 price range. U.S. stocks have seen a rally this week and the dollar has fallen against the euro to a two-month low of 1.2777. Profit taking and renewed fears of deflation after retail sales fell for a second straight month also fueled the ups and downs of the first part of the week.
According to some analysts, another reason for gold’s weak performance lately is the unwinding of the gold-euro position following the sovereign debt crisis in Greece. That situation seems to be under control for now so investors are also slowly creeping back into the Euro.
Signs show a $1200 gold price is well supported but to return to record territory, gold will need to break above $1230 an ounce. But as the dog days of summer drag on, don’t expect to see any big increases. Currently, markets are looking toward July 23rd when EU financial institutions will undergo a stress test. Another factor on where gold will go after the summer is India and the fall wedding season there.
And expect to see increased interest in gold and silver bullion as the Christmas holiday season approaches later in the year.
What does all this mean? Perhaps now is the time to consider investing in gold bullion while markets are relatively calm…it may be the best price you will ever be able to purchase this valuable asset for.
So if you want to take advantage of this calm before the potential storm, buy gold bullion through our secure online ordering system at Provident Metals today. And if you have any questions, please contact us today.
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