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| Bullion Tips |
Bullion Tips - The yellow metal dominated the world market scene
all of the last week. Gold declined to a five-year low, slipping to
an intra-day low-point of $1,072.30 by Friday. A late rally that day,
moreover, pushed prices back to around to be $1,100 an ounce. At
best, it helped pare losses from last Monday when the price slid to
its lowest from March 2009, to $1,088.05 an ounce.
The August Comex gold futures still ended their
5th consecutive week in negative territory. Though the rally suggests
that there would be an improvement in market sentiment, the bearish
undertone persists among retail investors. Surely, price movement is
set for an unpredictable phase, at least in the near-term. The
reasons behind the sliding interest in gold is not difficult to
fathom. An emerging rise in the U.S. interest rate, for the 1st time
in nearly a decade, is playing the villain. At the moment, a stronger
dollar remains the topic that dominates over discussions in the
marketplace.
An unintended release on a rate forecast on the
website of the Federal Reserve, though it was later-on withdrawn,
only helped to confound the confusion. Understandably, all eyes are
now on the Fed Reserve. A protracted oversupply situation, weak
demand, the Greek crisis and the Chinese market fall have all come
together to drag oil prices down. The fall of oil could still prove a
rescuer for gold. If there is a significant consequential fallout on
U.S. domestic inflation, the oil price fall could steady the Fed’s
tightening policy. A continue recovery in gold prices, it seems, that
it is inversely related to the growth prospects of the U.S. economy.
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