The current discussion of raising interest rates in Dec has caused downward pressure on Gold as it has been doing since 2011. We expect 4th Quarter data to be good and further drive prices down. Currently the market is moving in the opposite direction of the herd. Gold prices did not start to trend down until the majority of hedge fund managers went long in the future’s market. This combined with the latest Fed statements is what is driving the market down this week.
The fed has announced it will raise interest rates, this combined with China’s stock market collapse has sent the Dow Jones tumbling. If the Fed will reverse course next week, we expect stocks to reverse as well. Our current prediction for gold for the last week in August is positive.
By Mark Hutto
These are US Mint figures for American Gold Eagle’s monthly demand. Look at July. Prices dropped but demand has sky-rocketed. This is where futures trading conflicts with physical demand. The market may correct itself when speculators have to cover their short sales. This could result in some serious upward movement.
If you haven’t heard yet, we have a winner for the $1,000 “Are you for real” diamond contest. A nice couple from White City drove all the way to Ashland to take their chances and came back victorious! Both tried to pick the stone, and Karen R. pulled out a J Si2 .53 carat diamond! Congrats Karen!