Gold almost reached trading above last week’s record high. Several factors could have kept the precious commodity at bay. The post G-20 Summit’s negative sentiment set the pace for the global economic recovery concerns. Also, the head of the CIA announced that Iran could produce two atomic weapons in the next two years.
Nevertheless Rick Bensignor, chief market strategist at investment banking group Execution Noble LLC said that gold’s daily sentiment index was also at an extremely high 90 percent bullish sentiment on Monday June 28, and that added to the metal’s vulnerability.
Analysts have predicted that the price of gold will be influenced by the levels of eurozone debt and the stability of the region’s banking system, which is still uncertain.
“Really the big driver is investor perception, investor risk appetite and do we see any nervousness over the European (debt) issue,” said Societe Generale analyst David Wilson in an interview with Reuters.
“The underlying safe haven concerns have supported prices—the economic environment, Europe’s fiscal outlook, and the longer term prospects for inflation,” said David Moore, commodities strategist at Commonwealth Bank of Australia.
“The G-20 hasn’t had a significant impact on markets, and while concerns about Iran’s nuclear capacity are nothing new, there seems to be additional clarity.”
Spot gold was at $1,240.45 an ounce by 2:33 p.m. EDT, compared with $1,253.40 in New York on June 18.
“Sentiment is still quite brittle, so we can get intraday moves in either direction, but the longer gold stays above $1,250 and consolidates, the more likely we are for a leg up rather than a leg down,” commented Wilson.
Among other precious metals, silver was at $18.77 an ounce, from $19.04 late in New York, as well as the platinum group metals complex, platinum was down 0.2 percent at $1,564 and palladium was down about 1.4 percent at $466.50.
Nevertheless Rick Bensignor, chief market strategist at investment banking group Execution Noble LLC said that gold’s daily sentiment index was also at an extremely high 90 percent bullish sentiment on Monday June 28, and that added to the metal’s vulnerability.
Analysts have predicted that the price of gold will be influenced by the levels of eurozone debt and the stability of the region’s banking system, which is still uncertain.
“Really the big driver is investor perception, investor risk appetite and do we see any nervousness over the European (debt) issue,” said Societe Generale analyst David Wilson in an interview with Reuters.
“The underlying safe haven concerns have supported prices—the economic environment, Europe’s fiscal outlook, and the longer term prospects for inflation,” said David Moore, commodities strategist at Commonwealth Bank of Australia.
“The G-20 hasn’t had a significant impact on markets, and while concerns about Iran’s nuclear capacity are nothing new, there seems to be additional clarity.”
Spot gold was at $1,240.45 an ounce by 2:33 p.m. EDT, compared with $1,253.40 in New York on June 18.
“Sentiment is still quite brittle, so we can get intraday moves in either direction, but the longer gold stays above $1,250 and consolidates, the more likely we are for a leg up rather than a leg down,” commented Wilson.
Among other precious metals, silver was at $18.77 an ounce, from $19.04 late in New York, as well as the platinum group metals complex, platinum was down 0.2 percent at $1,564 and palladium was down about 1.4 percent at $466.50.
