Pinnacle Activity Ticker
Gold Price Stuck for the Summer
In the latest update from Bullionvault.com, gold’s range-bound performance over the past couple months is explained.
There is an overall lack of interest in the market and that includes gold trading. Traders would rather watch the Olympics and/or simply enjoy the summer than fight the doldrums. Because of this, gold has been in a rather tight range of $1570 to $1620. It has become very difficult for the gold market to gather any sort of momentum. In addition, India, the country that has typically been the largest consumer gold market in the world, is experiencing a lack of buying.
As Ben Traynor from Bullionvault.com explains “In India, which is experiencing a drier than usual monsoon, physical gold dealers continue to report subdued demand in what is traditionally the world's biggest gold buying nation.”
Indians are sticking to cash over gold as emergency funds may be needed given the severity of the drought.
Despite the slow summer, many traders and bullion dealers agree that the second half of the year is looking optimistic for gold as purchases are anticipated to rise. With the constant threat of inflation, given the perceived global need for more stimulus, gold is looking attractive to many.
Click here to read full article.