Adrian Ash
BullionVault
July 27, 2010
THE PRICE OF GOLD slipped back below $1185 an ounce in London trade on Tuesday morning, holding above yesterday’s 1-week closing low but remaining “directionless” according to one Chinese dealer.
“Investors are unclear about the immediate trend,” agrees Pradeep Unni at Richcomm Global Services in Dubai, telling Reuters that “physical gold buying is only expected to emerge by the end of this month.”
But “Current levels [of physical gold buying] compare well with previous highs reached earlier this year and late-2009,” says Walter de Wet at Standard Bank.
“We expect support from the physical market to increase towards Q4:10. Buying of gold for jewelry demand, especially in India, may increase in August/September.”
On the broader financial markets today, European equities rose to new 10-week highs as Deutsche Bank and UBS both reported stronger-than-expected revenues, and Britain’s BP oil giant slated $30 billion of assets for sale to help fund the Gulf of Mexico clean-up.
All major commodities rose in price, with US crude oil contracts gaining above $79 per barrel and silver prices rising to $18.30 an ounce.