There’s so much “different” gold news today that we can’t limit ourselves to just one bit. Here’s a quick review of what’s affecting gold this morning.
Preliminary numbers out of India show demand for gold was up in July. Initial reports from the Indian Ministry of Finance show gold imports are up 20% in July year-over-year, to 65.6 tonnes. That’s a positive sign in a market looking for support. Projected whole-year figures for 2018 still look down, possibly as low as 700 tonnes total by the end of December. That would be an 8% drop from 2017. So gold bugs are looking for still more increases in the coming months to help close the gap.
Meanwhile, more voices are calling the bottom in gold. Chantelle Schieven, head of research at Murenbeeld & Co, noted in an interview that gold is now “the ultimate contrarian play,” while Standard Chartered says they’re looking for gold to recover in September, just one month away. That’s a brave call in a market that’s bouncing along it’s year-low.
Finally, US-Japan trade talk announcements are due later today. This may have a small effect on the gold market, but this Gold Enthusiast thinks direct ties to gold are mythical more than realistic. Strangely absent from the news lately is the fact that the Russian ruble has plunged, now bouncing near 2-year lows following the latest sanctions by the US.
All in all these things are at the very least not giving gold any more reasons to drop, if not propping up the bottom. In the end of course, the market gets the final say…
Signed, The Gold Enthusiast
DISCLAIMER: No specific securities were mentioned in this article. The author is long a small basket of gold mining stocks, no positions large enough to affect any market, and no intentions of trading any of it in the next 48 hours.