Spot Gold Price to Surge Higher?
Arizona gold nugget
The gold market has been typically quiet this summer. Whether or not the typical autumn surge will follow, who can say? But hedge funds have trimmed their futures position, ETF buying has stalled, and London dealing volumes have shrunk, along with price volatility.
If the gold market were re-loading its gun, ahead of a fresh crisis of confidence in everything else, it would choose just those bullets. Correlations come and go for the gold price, meanwhile now moving with oil, and moving in opposition to stocks.
With the jump in gold yesterday, this could be a technical breakout for both ghold and silver. Institutional momentum-based buying and short-covering appear to be at play as we head into September, historically one of gold’s strongest months of the year. However, because of the size of yesterday’s move and the weakness this morning, we could see a small retracement for a day or two before the upward move continues.
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