Incoming US economic data releases (between June employment and July US employment) has been mixed. The non-recurring factors are no more. It will be technical trade. Physical demand for gold and silver in India and most parts of Asia is more or less zero. People in Asia that want to buy physical gold and are waiting for prices to correct. It is the expectation of higher demand at lower prices which is keeping everyone on their toes.
Lower energy prices will delay interest rate hike measures which will always be a positive for gold. While strong economic growth will always be negative for gold. The ‘Shariaization’ of the world has just begun. The conversion from a Church supported capitalized economy to a sharia world will be very bullish for gold. This conversion will result in fundamentalists from all religions fighting for supremacy or survival. Gold has to rise as a result of the same. (Please note that I do not support religious fundamentals and that I am a communist to the core.)
This post was published at GoldSeek on 3 August 2016.
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