Gold, Silver, Metal Prices Commentary – July 21, 2010

Bullion update ...Good Morning,

Tuesday’s price recovery in gold extended into the overnight hours and over to the early part of Wednesday’s action overseas. Sporadic bargain buying and some short-covering were noted ahead of the New York opening. The yellow metal rose as high as $1199.00 basis spot ask values but remained largely confined to a roughly ten dollar range in the absence of fresh news of either the bullish or bearish variety.

Traders are currently focusing on tracking risk appetite and are keeping an eye on slowing investment flows into gold as the euro-centric crisis appears to be dissipating. Holdings in the SPDR Gold Trust fell by more than six tonnes through yesterday’s close. There is still quite a bit of work left for the metal to accomplish before participants can declare the current slump as having come to an end.(…)
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