Gold futures fell for the first time this week as investors sold off their positions ahead of the year’s end. The metal reached a record $1,432.50 an ounce on Dec. 7 and is headed for a 10th consecutive annual gain.
Gold prices spent the week in range-bound territory amid thin volume and year-end adjustments to investor portfolios.
The strengthening of the dollar and rumors of China tightening monetary policy has pushed gold prices down. Some see this as a beginning of a correction for a ‘bubble’ in the gold market, yet many analysts see a continuing positive climate for gold.
With a rich history as the center of the global gold market, India is the world’s leading gold consumer. Although most Indian gold demand is focused on the jewellery sector, investment demand for gold in the region is experiencing substantial growth in the form exchange-traded funds.
Reuters reports that large buyers and institutional investors generally buy the metal from big banks.
321gold.com provides an uodate on the weekly gold market.
Supreme Resources(CVE:SPR) reports a non-brokered private placement financing to raise gross proceeds of up to $400,000. Proceeds of the Private Placement will be spent on the Company’s TAS and Verde Projects located in the Copper Mountain Mining Camp near Princeton, British Columbia and the Ample-Goldmax Property located near Lillooet, British Columbia and for general working capital. [...]
Gold prices traditionally rally off the summer lows in September as many players come back to the market. And if this year holds true to that seasonality, next month might turn out to be “a good September.”
Sprott Asset Management's chief investment strategist, John Embry, told Mineweb’s Gold Weekly podcast listeners Wednesday that if gold’s “not between $1,500 and $2,000 in the next 18 months, I'm dead wrong."
Gold is showing signs prices are well supported at the $1200 level, although a break above $1230 an ounce is needed to set the stages for much higher gains. But don’t expect much in the way of gains over the next several weeks as the seasonally slow summer doldrums drag on.
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