Looking For Signs in Gold Market
Precious metals have been bouncing around this week, up one day, back down the next. Lot's of fluctuation, but no significant trend or direction and the floor seems solid at about $875 for gold and $16.50 or so for silver.
In times like these, I always find it enlightening to keep an eye open for indicators. Read the articles, blogs and opinion pieces, but also look for news stories which may offer some clues about the nebulous future of precious metals prices.
One article of special interest turned up today from the Shanghai Daily, through the China.org.cn website. In general this story indicated that gold demand in China for the second quarter was weak, due to buyer indecision. Looks like market price fluctuations have created a wait and see attitude among all types of buyers in the second quarter and I think this may be true of other markets, not just China.
As we sit on this precious metals ledge,with the Federal Reserve considering a directional turn in raisring interest rates to strengthen the dollar, it would seem that we have come to a potential pivot point for the U.S. economy and in turn the world economy and in turn gold.