Market Update GoldCore 2 July

Market Update GoldCore

Smart Wealthy Money Seeking Storage Outside Banking System

Today’s AM fix was USD 1,260.75, EUR 967.95 and GBP 829.93 per ounce. 
Yesterday’s AM fix  was USD 1,243.50, EUR 952.80 and GBP 816.27 per ounce. 
Friday’s AM fix was USD 1,203.25, EUR 921.89 and GBP 789.33 per ounce. 

Gold climbed $20.50 or 1.66% yesterday and closed at $1,252.70/oz. Silver hit $20.09/oz in Asian trading fell back in London and rebounded higher in NY, but finished with a loss of 0.1% at $19.60/oz.

Gold ETF outflows continue and are at a four year low, with SPDR Gold Trust saying its holdings dropped to 968 tonnes, a figure not seen since 2009. However physical demand remains robust as seen in China, in the U.S. Mint figures and the increasing demand for international bullion storage, outside the banking system.

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Investors will keenly wait for the U.S. nonfarm payrolls figure on Friday. A good jobs number will see gold come under pressure again while a poor number could lead to further buying.

Physical demand remains robust globally and especially in China where Reuters report "stock loading in the market and physical buying in Shanghai."

There is also the interesting trend of many western banks, some who are making loud bearish noises in public, quietly moving to offer their high net worth client’s storage in Zurich, Singapore and Hong Kong.

Smart money is still accumulating physical gold and the banks know this and realise that in order to retain clients and income they must offer bullion services and storage outside the still fragile banking system.

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"The time to buy is when there is blood in the streets" - Rothschild

The U.S. Mint sold 14,500 ounces of gold coins on the first day in July, according to figures on the Mint’s website. At that pace, total sales for the month would be 333,500 ounces, up 993.4% from a year earlier according to Bloomberg.

Gold is "extremely oversold" on a variety of indicators including long-term momentum indicators.

Gold appears to be close to a bottom and there is major support between $1,000/oz and $1,200/oz. Further weakness is possible and buyers should wait for a higher weekly close before dollar, pound and euro cost averaging their physical accumulation.

Ignore the considerable noise, alarmist articles and headlines and always focus on the fundamentals, on the importance of diversification and most importantly always have a long term perspective.

News From Around The World

Jim Rogers on Gold: "Certainly Close To a Bottom"   Bull Market Thinking

Real Difficult Time Right Now Getting Physical Metal   Zero Hedge

"We believe gold and gold miners represent good risk/reward"   Zero Hedge

"Has Gold's 'Bubble' Burst Or Is This Another Buying Opportunity?"

Are you concerned about the sharp fall in gold and silver prices in 2013? Are you unsure as to the outlook for the precious metals and to whether you should be selling or buying?

If so, don't miss this opportunity to join us for a webinar on Tuesday, July 2nd at 1300 GMT. We will look at the performance so far in 2013 and the outlook for the second half of the year and more importantly for the coming years.

Join Mark O'Byrne, Head of Research and Founder at GoldCore.

In this 45-minute webinar, discover:

• Where We Are Now In The Market Cycle
• The Outlook for Gold and Silver This Year And Coming Years
• Learning From The 1970s Bull Market and the 1975/76 Price Collapse
• The Safest Way To Own Gold and Silver
• Knowing When To Reduce Allocations Or Sell

ENDS

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