by Alasdair MacLeod
As our headline chart shows, this week gold and silver continued its sideways drift in a narrowing trading range. On the week, gold rose by $15 to trade at $1954 in early morning European trade today, and silver was unchanged at $27.13. Comex volume in gold was moderate while in silver trading was light. It is characteristic of markets which have found a balance to trade sideways until a breakout occurs. All we can do in these circumstances is bide one’s time, and bulls will look to add on the dips and bears to sell on the rallies.
Buying appears to have revived in Asian markets, with prices firmer overnight, only to be sold down in US trading. This is partially confirmed by Asian ETF sales which are growing again. It is worth noting that the Chinese yuan has risen against the dollar, making gold prices more attractive, reversing the collapse in eastern demand when the gold price ran up to $2,000.