Marex Spectron Bullion Thoughts

The gold market is sitting in the doldrums with little to no excitement in the world to push it one way or another. As such, the price is drifting lower and is purely following dollar moves, especially dollar yen. This has strengthened significantly over the last few days and has created the move lower in precious metals.

The London Bullion Market Association had its annual conference last week and struggled to come up with anything interesting to tell anyone. The forecasts, which are made at each conference predicted that the price of gold would be at 1369 usd per ounce this time next year, which reflects the feeling that we really won’t see a great deal in the market unless geopolitical influences move it dramatically.

I wish I could come up with a nugget of good news and positivity for the market, but I’m afraid I think we are in for a period of sideways moves, dictated as always by the dollar and any adverse headlines. Expect moves to be exaggerated on figure releases and Fed comments.