The outlook for the precious metals remains bearish, INTL FCStone said, predicting that gold will trade between $1,050 and $1,131 this month.
The spot gold price was last at $1,092/1,092.9 per ounce, down $4 on the pre-weekend close.
“What has proved to be especially disappointing for the gold bulls is that all the variables that were supposed to rally the market (on paper at least) failed to do so,” the broker said in a monthly report.
This was most clearly evident in June when a Chinese stock market implosion and turmoil in the euro in light of possible Greek exit from the eurozone – the so-called ‘Grexit’ – failed to budge prices, it added.
Earlier, weakness in the dollar that lasted from mid-April to mid-May also fell flat. The greenback was last around 1.098 against the euro, strengthening from around 1.14 in mid-June.
In addition, physical demand remains poor – the recent GFMS survey highlights a 14-percent quarterly decline in global uptake in the second quarter, while ETF holdings continue to lose units, which is why physical premiums remain depressed.
There were outflows in the funds tracked by FastMarkets for the 15th consecutive session on Friday, bringing holdings to 1,529 tonnes, the lowest total in more than six years.
Silver, platinum and palladium will also move lower over August, INTL FCStone predicted.
Silver prices will fluctuate between $14.35 and $15.50. A breach of $14.15 would prove serious as there is not much support below that point, the broker said. Silver recently traded at $14.66/14.71 per ounce, down 10 cents.
Platinum will trade between $915 and $1,040 this month and palladium between $560 and $655 – both are being hit hard by more South African supply and an abrupt slowdown in Chinese car sales, it said.
Platinum was last at $970/975 per ounce, down $11, while palladium at $617/622 was up $9.
(Editing by Mark Shaw)
The post Gold prices to remain depressed in August – INTL FCStone appeared first on The Bullion Desk.
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