The price of gold is ready for autumn

The price of gold is ready for autumn

The price of gold has confirmed its intention to continue with higher growth. After staying at $ 1,830 an ounce for several days, the spot price of gold is now trading at $ 1,830 an ounce.

Summer 2011 was a special year for gold, as the gold market tends to be quiet in the summer. And the last correction in gold in late August at 11% was so short that potential buyers had only 4 days to buy gold at less than $ 1,800 an ounce.

This rapid recovery of gold is an indication that there are many physical gold buyers in the market who are now willing to buy despite the increasing margin requirements of the CME group and the Shanghai Gold Exchange. In September, we can see an even greater rise in gold prices as the season of festivals and weddings in India begins, during which it is customary to make gold gifts, which will be the main driver of falling gold prices.

Silver has shown more volatility than gold this summer, but a $ 40 / oz price base is not a bad state for silver. Silver is an industrial metal and a monetary metal, and is therefore at the center of a struggle between two commodities: gold and crude, which also underwent a strong correction in August. The relationship between silver and other industrial goods is showing signs of tension. If this ratio falls, then we can expect a rapid rise in the price of silver, which may be closer to its historical relationship with 16: 1 gold.

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