Next week brings the end of the third quarter, cold comfort for bullish gold traders who are likely hoping the fourth quarter will usher in the stronger trading pattern traditionally seen in gold. As of Friday, gold prices are down about $100 an ounce from where they settled on June 30, at $1,322. Silver is also down sharply from its June 30 settlement of $21.115 an ounce.
Sometimes the start of a new quarter brings a fresh perspective and allows money managers to redeploy funds to new investment strategies.
George Gero, vice president with RBC Capital Markets Global Futures and a precious metals strategist, said whether gold gets a bounce next week as the fourth quarter debuts depends on news headlines.
“If gold rallies, money managers may be incentivized to allocate gold. But if the stock market is steady and … yields (rise), those (are negative) for gold. But all of this could be helpful for silver because it’s a more industrial precious metal,” Gero said.
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Chart courtesy of Kitco Weekly Gold Survey.