Gold rose by more than 2% last week, even while oil fell by more than 5%. Gold rose from $1094 in the London setting last Monday (August 10) to $1119 this Monday, August 17 while gold fell from $45 to nearly $42 per barrel.  Gold got a double boost last week:

Gold rose by more than 2% last week, even while oil fell by more than 5%. Gold rose from $1094 in the London setting last Monday (August 10) to $1119 this Monday, August 17 while gold fell from $45 to nearly $42 per barrel.  Gold got a double boost last week:

Gold rose back above $1100 Monday morning, rising $15 per ounce in about two hours (10 am to noon, Eastern time) from $1,095 to nearly $1,110 after trading below $1,100 for the previous two weeks.  Silver rose from $14.90 to $15.40 in the same two hours. The proximate cause is that Federal Reserve Vice Chairman Stanley Fischer said that the Fed won’t likely raise rates until inflation has returned to normal.

Gold rose back above $1100 Monday morning, rising $15 per ounce in about two hours (10 am to noon, Eastern time) from $1,095 to nearly $1,110 after trading below $1,100 for the previous two weeks.  Silver rose from $14.90 to $15.40 in the same two hours. The proximate cause is that Federal Reserve Vice Chairman Stanley Fischer said that the Fed won’t likely raise rates until inflation has returned to normal.

Gold rose back above $1100 Monday morning, rising $15 per ounce in about two hours (10 am to noon, Eastern time) from $1,095 to nearly $1,110 after trading below $1,100 for the previous two weeks.  Silver rose from $14.90 to $15.40 in the same two hours. The proximate cause is that Federal Reserve Vice Chairman Stanley Fischer said that the Fed won’t likely raise rates until inflation has returned to normal.

Gold reached a 5-1/2 year low on the London morning gold setting last Friday, July 31, at $1080.05 per ounce.  However, the afternoon setting was $18.35 higher (+1.7%), at $1098.40.  In New York, gold rose from $1080 at 8:00am Friday to $1102 at 9:30 before consolidating at $1095 over the weekend.

Gold reached a 5-1/2 year low on the London morning gold setting last Friday, July 31, at $1080.05 per ounce.  However, the afternoon setting was $18.35 higher (+1.7%), at $1098.40.  In New York, gold rose from $1080 at 8:00am Friday to $1102 at 9:30 before consolidating at $1095 over the weekend.

Gold suffered a “bear attack” in China last Monday, July 20, when Chinese traders pushed gold down to $1080 before buyers moved in.  A huge wave of selling (representing 33 metric tons of gold in the most actively-traded futures contract) traded hands in two minutes, sending gold down $40 in minutes.  There was a holiday in Japan and it was late Sunday in New York, so there was no immediate buying.  After that, gold drifted above and below the $1100 line all week long, touching $1076 on Thursday in London before closing the week (in Asian trading) at $1098.  There are many reasons cited for the selloff in China, but most likely China’s stock market crash caused some investors to sell gold to meet margin calls.

Gold fell to $1101 on Monday, July 20, based on overnight selling in Asia. In essence, many investors are responding to the “good news” coming out of the Greek compromise, the Chinese market rally and the arms deal with Iran, but any one of those dangerous situations could backfire at any time.  Gold hasn’t dipped below $1100 since late March of 2010.  Physical demand for gold remains strong in the U.S., Asia and Europe, but leveraged professionals remain the “tail that wags the dog,” pushing gold further down.  However, gold is still up so far in 2015 in terms of the euro and in Canadian or Australian dollar terms.

Gold fell to $1101 on Monday, July 20, based on overnight selling in Asia. In essence, many investors are responding to the “good news” coming out of the Greek compromise, the Chinese market rally and the arms deal with Iran, but any one of those dangerous situations could backfire at any time.  Gold hasn’t dipped below $1100 since late March of 2010.  Physical demand for gold remains strong in the U.S., Asia and Europe, but leveraged professionals remain the “tail that wags the dog,” pushing gold further down.  However, gold is still up so far in 2015 in terms of the euro and in Canadian or Australian dollar terms.