Bouncing around within a fairly narrow range, the price of gold seems to be caught in a neutral pattern, analyst Manford Mallory of Capital Group Securities of Toronto told The Northern Miner.
The precious metal, whose afternoon fix in London at presstime was $432.85(US) per oz, was, about a week ago, riding in the $444 range. At the beginning of June, the gold price was in the $465 range. In New York this past week the metal dropped to as low as $426.
Mallory, who foresees the price continuing to drift for the next few months at least, said the current price-trading range appears to be a balancing off involving several factors.
On the bearish side, he said, concerns about inflation have abated, gold-loan activity as a corporate means of raising finances seems to have peaked and a more stable U.S. dollar seems to have found a bottom.
Counteracting these trends is a strong physical gold bullion market — coins, for example, are selling well — and a buying spree by a number of Far East purchasers, the Taiwanese government in particular, and private-sector investors.
The price of another precious metal, silver, went on a brief tear recently, reaching $7.82(US) per oz in London. It has pulled back and at presstime was selling below the $7 mark.
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