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"Suppressed Price", Poor Sentiment and Greece Risk Means Gold "Due A Bounce"

GoldCore's picture




 

Today’s AM LBMA Gold Price was USD 1,179.25, EUR 1,055.68 and GBP 761.27 per ounce.
Yesterday’s AM LBMA Gold Price was USD 1,180.50, EUR 1,049.19 and GBP 763.51 per ounce.

Gold fell $4.70 or 0.4 percent yesterday to $1,181.50 an ounce. Silver climbed $0.01 or 0.06 percent to $16.04 an ounce. Gold is on track for a 1% gain in dollar terms, is flat in euro terms and is lower in sterling terms.

Gold in USD - 1 Week

Gold in USD – 1 Week

Gold in Singapore for immediate delivery was steady at at $1,183.03 an ounce near the end of the day,  while gold bullion in Switzerland was again marginally lower.

Even though gold declined yesterday on the back of positive U.S. retail figures, it is still on track for a 1 percent weekly gain due to a weaker U.S. dollar.

Gold is not seeing a boost from safe haven buyers due to the Greek financial crisis, which may or may not include an exit from the euro. European Commission President Jean Claude Juncker said today that stalled debt talks between Athens and its creditors would restart but put the ball firmly in the Greek government’s court to come up with an acceptable deal.

The question is whether this is due to quite poor sentiment in the gold market or are banks that have been found rigging most markets, manipulating the gold market?

Gold in Euros -  1 Week

Gold in Euro –  1 Week

Poor sentiment towards gold is seen in liquidations of the gold ETFs such as the SPDR Gold Trust, the world’s largest. It has seen its holdings fall again this week to the lowest levels since 2008.

With sentiment poor and prices depressed or suppressed, depending on your point of view, gold looks gold value at these levels and is overdue a bounce. The possibility of a Greek financial debacle should support gold and potentially push it higher before the important June end deadline.

The psychological price level of round number $1,200 per ounce will offer resistance but should gold rise above it, we would expect a move to $1,250 in short order.

Gold in British Pounds -  1 Week

Gold in British Pounds – 1 Week

The sharp bond market selloff is bullish for gold as it is starting to pinch American consumers and companies, causing a mild economic tightening that will raise alarms at the Fed and will likely delay the expected hike of interest rates in coming months.

U.S. mortgage rates have reached their highest level in 18 months, auto loans are getting more expensive, and corporations across the board have seen their borrowing costs jump as U.S. and European debt retrenched in recent weeks.

Asia’s demand has faltered a bit with monsoon season in India and China’s surging stock market has softened buying of the yellow metal but demand remains quite high as seen in the premiums on the Shanghai Gold Exchange (SGE).

In late morning European trading gold is down 0.13 percent at $1,180.14 an ounce. Silver is off 0.44 percent at $15.95 an ounce, and platinum is also down 0.81 percent at $1,098.90 an ounce.

Must Read Guide:  Avoid Digital Gold  - Own Real Gold  

 

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Fri, 06/12/2015 - 14:13 | 6190735 Flying Wombat
Flying Wombat's picture

Playing Hardball: Germany Now ‘Taking Advice’ on Possible Grexit

http://thenewsdoctors.com/?p=468979

Fri, 06/12/2015 - 12:46 | 6190462 lasvegaspersona
lasvegaspersona's picture

Increased demand for paper gold will be met with increased supply of paper gold with no real risk to the supplier. After all if things get bad they can drive the price even lower and close out accounts. Direxion just announce the closeure of their 3x gold ETF. Beware....physical only fellows.

Fri, 06/12/2015 - 11:28 | 6190207 Conax
Conax's picture

"The question is whether this is due to quite poor sentiment in the gold market or are banks that have been found rigging most markets, manipulating the gold market?"

Hello dumbass, the sentiment for gold is so poor due to that manipulation the existence of which you still can't detect. Gold ain't the half of it- silver is about 1/3 the price it reached in 1980.  Correct for inflation over 35 years and it's absolutely farcical.

Fri, 06/12/2015 - 11:15 | 6190178 Kreditanstalt
Kreditanstalt's picture

Unbacked futures, options and naked shorting are all allowed by LAW. 

It's NOT individual manipulating scapegoats.  Governments permit this COMEX farce to rig the price of real metal by flooding the fake "markets" with PAPER.

Fri, 06/12/2015 - 11:08 | 6190155 wrs1
wrs1's picture

No way gold goes up before oil.  The cheerleading on here against oil fails to recognize the fragility of the position of gold due to low oil prices in the face of massive monetary debasement through fake asset inflation.  Gold is just a useless metal but oil is what puts food on tables and connects the world economny, without a good supply nothing will function and without a good price, the supply will dwindle rather more than quickly and painfully.

Fri, 06/12/2015 - 10:27 | 6190024 harrybrown
harrybrown's picture

working overtime to stack even more at this price, keep it dropping, im loving it

Fri, 06/12/2015 - 09:47 | 6189884 fukidontknow
fukidontknow's picture

Gold's looking mighty fine in my local slave scrip $kiwi.

Fri, 06/12/2015 - 09:45 | 6189883 Racer
Racer's picture

or are banks that have been found rigging most markets, manipulating the gold market?

Why the question mark?!

Fri, 06/12/2015 - 11:18 | 6190186 KnuckleDragger-X
KnuckleDragger-X's picture

The question mark is rhetorical.....

Fri, 06/12/2015 - 09:41 | 6189863 christiangustafson
christiangustafson's picture

OMG wait for equities to crash first!  Margin calls on leveraged stawks will have everyone unloading the precious like crazy.

The gold salesmen who advertise here on the Zero Hedge are truly shameless.

/GC to $700 and it starts to get interesting.  Look out below!

Yes, it will go to $50K/oz, when the dollar eventually fails, but first it goes much lower.

Fri, 06/12/2015 - 13:08 | 6190515 detached.amusement
detached.amusement's picture

yeah, phobos is hitting Mars pretty soon too

Fri, 06/12/2015 - 09:47 | 6189886 unplugged
unplugged's picture

unpossible - betcha the 'usual amount' it wont

Fri, 06/12/2015 - 09:40 | 6189859 unplugged
unplugged's picture

keep up the rigging, please! 

I'm a greedy mo-fo - the more I can stack the happier I get

Fri, 06/12/2015 - 11:53 | 6190288 Creepy A. Cracker
Creepy A. Cracker's picture

Gravity has been working incredibly well with the bounces lately.

Fri, 06/12/2015 - 13:57 | 6190642 0b1knob
0b1knob's picture

The poor gold bugs.   Always the victims of a vast conspiracy to suppress the price of their beloved relic.   So prone to tragic boating accidents.

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