Marex Spectron Bullion Thoughts

Last week saw the long awaited pull back in gold and silver that I had been looking for. However it hasn’t lasted long as the stock market decided yesterday to fall out of bed, which has encouraged some small safe haven buying in gold and the yen (which in turn helped gold). Although there are plenty of doom and gloom merchants around who will tell you this is the beginning of the end for the stock market, I am not one of them. I think this is a healthy, albeit rather vicious correction and we may see more over the next week, but on the whole I really wouldn’t panic. As such, I don’t think gold will go a lot higher and if the stock market does recover, the dollar may well do the same, at which point gold comes lower again.

All in all though the market really isn’t very exciting, with the eyes of the world far more on stocks, bonds and currencies. Gold overall will continue to follow the dollar and with another rate rise on the cards next month, the upside remains limited.