Gold Up for Second Straight Session

Thursday, 30 May 2013
Written by  Bloomberg
Published in Gold Investing
The demand for gold and other precious metals was up today as the dollar dropped again and buying of ETP’s (Exchange Traded Products) both helped the yellow metal gain for a second straight session. This is not something that has been happening very often, so it is nice to see the yellow metal move up in price in consecutive sessions.

Fiscal-Cliff

Assets for gold were up, while the dollar fell for the second straight time. While gold is up for a second straight day it is still down by a total of 5 percent for the month of May. Barring a huge jump tomorrow, the yellow metal is poised to end the month of May down overall.

“Strong physical demand, especially in Asia, is supporting gold and could contribute to higher prices,” said Mark O’Byrne, executive director of GoldCore Ltd. in Dublin. “Gold is oversold on a host of benchmarks and sentiment towards gold today is negative which is bullish from a contrarian perspective.”

Gold for immediate delivery climbed 0.8 percent to come in at $1,403.74 an ounce during early trading in London. Futures for August delivery advanced 0.6 percent to come in at $1,400.50 an ounce on the Comex in New York. Trading of gold on Comex was 45 percent higher than the average for the past 100 days at this time of day, according to data compiled by Bloomberg.

Gold has dropped 16 percent this year and entered a bear market last month as the U.S. Dollar Index strengthened 4.6 percent and the MSCI All-Country World Index rallied 9 percent. This is also the first time gold has been back up over the $1,400 per ounce price mark in some time.

We will see what the yellow metal can do tomorrow (Friday) as it will try to spike upward in price for a third straight session. We are now just a couple of days away from June and the midpoint of 2013. Gold has yet to find a foothold to make any sort of significant move in 2013.

If the yellow metal is unable to spike back up in price over the next several months then it will be the first time in over a decade that the yellow metal does not end the year up overall.

Original Article: Bloomberg

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