Gold has traded between $1,311 and $1,323 so far today…as of 10:30 am Pacific, bullion is down $3 an ounce at $1,319…Silver is off 2 cents at $19.57…Copper is flat at $2.23…Crude Oil has plunged more than $1 a barrel to $43.07 while the U.S. Dollar Index is down one-tenth of a point to 97.33…
Speculators have cut their record bullish bets on COMEX Gold futures and options for 2 straight weeks, taking the total to its lowest in a month, according to U.S. Commodity Futures Trading Commission (CFTC) data released on Friday…even so, they remain highly elevated (particularly Silver)…
While net length in Comex Gold futures is decreasing, holdings in Gold-backed exchange-traded funds have kept rising this month…this suggests that retail and institutional holdings in ETFs are generally “stickier”, according to Citi Research. “These investors might also be holding Gold given what still remain extremely low rates across most OECD bond markets,” Citi stated.
Gold ETF inflows averaged 90 tonnes per month in the 1st half, the fastest pace since the financial crisis, Citi says. “The rate of builds this month has slowed to around 50 tonnes, though it has continued to tick higher in recent sessions despite the drop in price,” Citi noted. “Should Comex long positioning normalize, and ETF holdings stay stable, any unwind in Gold is still likely to remain orderly.”
The World Gold Council and the Accounting and Auditing Organization for Islamic Financial Institutions are drafting new standards for investing in Gold to comply with Sharia law, according to an Energy and Capital article…if the proposals for the changes (expected in the 4th quarter) are accepted, a flood of new investors could help send Gold prices soaring, the article continues…a similar situation took Gold prices to $1,900 in 2011 when surging demand came from China following the government’s urge for its citizens to own the yellow metal…
No surprises from the G20 meeting over the weekend in China’s southwestern city of Chengdu – the world’s major economies pledged to use all policy tools available to boost growth…Philip Hammond, Britain’s new finance minister, said the uncertainty about Brexit would begin to abate once Britain laid out a vision for a future relationship with Europe, which could become clearer later this year…
Gold 7-Month Daily Chart
Gold’s RSI(14) on this short-term chart is bouncing along support at 50% – only once since the last half of January, when Gold’s new bull run started, has the RSI(14) fallen below 50% on this daily chart, and that was for just a few weeks in late May/early June…
A strong band of price support exists between $1,290 and $1,320, so a drop below $1,290 and the 50-day moving average (coinciding with Fib. support) seems highly unlikely…any weakness in Gold since February has consistently proven to be a buying opportunity, and now should be no different…
In today’s Morning Musings…
1. Like a “military style” campaign – a highly efficient drill program in action at Colorado Resources‘ (CXO, TSX-V) KSP Property in the Heart of Gold Camp as witnessed by BMR…
2. The Silver War: Dolly Varden (DV, TSX-V) stands up to Hecla (HL, NYSE)…
3. Gold and Venture chart updates….
4. Cannabix Technologies (BLO, CSE) firms up after reporting progress on its marijuana breathalyzer…
5. Aphria (APH, TSX-V) surges to another all-time high…
Plus more…click here to read the rest of today’s Morning Musings, and all BMR exclusive content, by taking advantage of our July Special, or login with your username and password.
ALSO…click here for a free BMR eAlert tomorrow on a 9-cent junior ($2.3 million market cap) that’s set to SOAR on higher Silver prices.
