Pinnacle Activity Ticker
Market Summary: What's Driving Gold and Silver
Pinnacle Digest writes: Of the thousands of news articles and analyst commentary released each and every day on the precious metals sector, Adrian Ash attempts to summarize and highlight only the most important issues. Towards the end of this week, Standard Bank strategist Steven Barrow, stated, "The labour market needs to improve for QE3 to end and, if it does not improve as the Fed wants, other [monetary policy] measures will be introduced."
Evy Hambro, co-manager of the UK's giant Blackrock Gold & General mining-stock fund commented that, "If the third round of quantitative easing leads to further weakness of the US Dollar, [other] central banks may be prompted to switch more cash reserves into gold."
The price of gold has already made a substantial move since the beginning of August and is now consolidating as it appears ready to move through $1800 an ounce. Harshad Ajmera of the JJ Gold House wholesalers in Kolkata stated, "There has been a sustained pickup in the last 10-15 days as people are comfortable with the current rates."
In respect to the $1791-1800 price level, Swiss refinery MKS's Moudi Raad in Geneva stated, "Thick producer and physical offers were present on the last 2 attempts through this area."
Ash reminds investors that next month brings the Hindu festival of Diwali, typically the peak season for India gold demand amid the post-harvest wedding season.