Asian Metals Market Update: July-20-2016

Jon Banking, Economy, Fiscal Policies, Gold, Market Commentary, Precious Metals, Silver

The key reason why gold and silver are falling is that the UK has deferred exit from the European Union to next year. The focus of investors has now once again shifted to US economic progress and US interest rate hikes. There is speculation that there will be a December interest rate hike by the Federal Reserve. Fundamentally also gold and silver are weak due to lack of demand in Asia. Going forward news from the UK will be positive rather than negative for gold and other safe havens unless the UK decides to remain in the European Union.
We have the European central bank meeting today. There is expectation that there will be more easing. Gold and silver will rise if more free money is flooded in the markets.
Unwinding of long gold positions as gold August futures expire next week aided by momentum short sellers is also causing the fall in prices. Silver is just tracking gold.

This post was published at GoldSeek on 21 July 2016.