A Gold Moment: September 2, 2014
Gold has fallen back under pressure as days pass without any evidence of economic instability. Whether it is expectations of rate changes from the Fed and the other central banks or any destabilization of trade due to the many geopolitical battles, the more time that passes without monetary incident, the less need money managers feel a need for a safe haven like gold. The trouble in Ukraine does not seem to be waning at all. In fact the Russian president has been quoted as talking about a political solution contrary to what the west has been looking for. At the same time NATO is planning on building a force to protect Eastern Europe. Even these seemingly inflammatory statements have been viewed as contained.
The ECB is meeting this week and many traders have little hope they will hear some words to give the Euro a boost. The strength in the USD that comes fro the weaker Euro is also adding pressure to gold for now.
Technically, despite the pressure on thespot price today, consolidation is still the theme as intraday charts are oversold. The upside was tested last week at 1292 level and failed. This week starts with a test of the downside. If buyers do not materialize between 1270-1272, a close under this level will trigger sell stops sending gold to test 1258 and behind that, the June low of 1240 .
ETF: GLD Deposits: 795.00 tonnes -0.60
Comex GC O.I. : 365,562 +4588
ETF: SLV Deposits: 10,311.68 tonnes unch
Comex SI O.I.: 159,634 +951