Supressed Gold Price and Poor Sentiment Indicates a Good Time to Buy

Today’s AM LBMA Gold Price was USD 1,179.25, EUR 1,055.68 and GBP 761.27 per ounce.
Yesterday’s AM LBMA Gold Price was USD 1,180.50, EUR 1,049.19 and GBP 763.51 per ounce.

Gold fell $4.70 or 0.4 percent yesterday to $1,181.50 an ounce. Silver climbed $0.01 or 0.06 percent to $16.04 an ounce. Gold is on track for a 1% gain in dollar terms, is flat in euro terms and is lower in sterling terms.

Gold in Singapore for immediate delivery was steady at at $1,183.03 an ounce near the end of the day,  while gold bullion in Switzerland was again marginally lower.

Even though gold declined yesterday on the back of positive U.S. retail figures, it is still on track for a 1 percent weekly gain due to a weaker U.S. dollar.

Gold is not seeing a boost from safe haven buyers due to the Greek financial crisis, which may or may not include an exit from the euro. European Commission President Jean Claude Juncker said today that stalled debt talks between Athens and its creditors would restart but put the ball firmly in the Greek government’s court to come up with an acceptable deal.

The question is whether this is due to quite poor sentiment in the gold market or are banks that have been found rigging most markets, manipulating the gold market?

Poor sentiment towards gold is seen in liquidations of the gold ETFs such as the SPDR Gold Trust, the world’s largest. It has seen its holdings fall again this week to the lowest levels since 2008.

With sentiment poor and prices depressed or suppressed, depending on your point of view, gold looks gold value at these levels and is overdue a bounce. The possibility of a Greek financial debacle should support gold and potentially push it higher before the important June end deadline.

The psychological price level of round number $1,200 per ounce will offer resistance but should gold rise above it, we would expect a move to $1,250 in short order.

The sharp bond market selloff is bullish for gold as it is starting to pinch American consumers and companies, causing a mild economic tightening that will raise alarms at the Fed and will likely delay the expected hike of interest rates in coming months.

U.S. mortgage rates have reached their highest level in 18 months, auto loans are getting more expensive, and corporations across the board have seen their borrowing costs jump as U.S. and European debt retrenched in recent weeks.

Asia’s demand has faltered a bit with monsoon season in India and China’s surging stock market has softened buying of the yellow metal but demand remains quite high as seen in the premiums on the Shanghai Gold Exchange (SGE).

In late morning European trading gold is down 0.13 percent at $1,180.14 an ounce. Silver is off 0.44 percent at $15.95 an ounce, and platinum is also down 0.81 percent at $1,098.90 an ounce.

Source: http://silveristhenew.com/2015/06/12/supressed-gold-price-and-poor-sentiment-indicates-a-good-time-to-buy/