Gold Bounces Along While Silver Lags

Source:

The big question facing the gold investor at a time like this is "Is the $650 level a top - or the $640 level a bottom?" Personally I'd incline towards the latter given that this level has held despite some pretty adverse news in the market regarding Central Bank and IMF current and proposed sales levels.

The month of June has actually seen little change in the price of gold from beginning to end, while silver, which had been outperforming the yellow metal, has been seeing perhaps a little more weakness over the period.

Indeed over the month, the gold price has seemingly bounced along between the $640 level and a little over $650. Every time a breakout seems imminent above or below these two levels, the market counters it immediately.

The big question facing the gold investor at a time like this is "Is the $650 level a top - or the $640 level a bottom?" Personally I'd incline towards the latter given that this level has held despite some pretty adverse news in the market regarding Central Bank and IMF current and proposed sales levels. The market has absorbed some pretty impressive bullion sales levels through May and the beginning of June, while for part of June, the expected continuing dollar weakness did not materialise - until right at the end of the month.

Related Articles

Get Our Streetwise Reports Newsletter Free

A valid email address is required to subscribe