If you are selective, you can leverage the next rally phase in gold by buying financially strong gold mining companies with real-time production.
Tanzania is one of the world's poorest economies in terms of per capita income, however, Tanzania averaged 7% GDP growth per year between 2000 and 2008 on strong gold production and tourism.
But Treasury auction demand has been strong while gold has faltered and investors have perceived some weakness in the euro and yen.
Reports Tuesday said demand for physical gold in India continues very strong, with small gold bars unable to be found in that country.
Gold market bulls were encouraged Thursday when the World Gold Council reported strong world central bank demand for gold in the third quarter, at a total of 148 tons.
Treasury yields plunged today on strong demand, while gold, oil and equities were also strong.
December silver futures prices closed nearer the session high Tuesday and saw spillover buying support from the strong gains in gold.
FORBES: Comex Gold Soars to New All-Time High on Strong Investor Safe-Haven Demand
And, whereas September-December historically has been a seasonally strong period for gold, there also has been a seasonal tendency for corrections in October, Person added.
FORBES: Gold Traders Eye U.S. Dollar, Technicals As Consolidation Continues
The U.S. Mint also reported very strong sales for gold coins.
FORBES: METALS OUTLOOK: Tug-Of-War Action Possible For Gold Next Week
This lag sets the stage for a possible strong rally in gold equities relative to bullion once mean reversion to historical levels kicks in, just like it has done time and time again.
FORBES: Gold Stocks Look Like Diamonds In The Rough With Metal Making New Highs, Stocks Slumping
There are some market watchers who believe after the strong rally in gold, the metal could trade in a range or even pull back in the next week or so, even as they have long-term bullish viewpoints.
FORBES: METALS OUTLOOK: Nervousness Regarding Global Economy To Support Gold Next Week
After a week of strong gains, gold prices pared some of that strength on Friday on a combination of position-squaring ahead of the weekend and after a stronger-than-expected report of second quarter U.S. gross domestic product data.
FORBES: METALS OUTLOOK: Markets Look To Fed, ECB, Jobs Data Next Week
Gold had seen strong selling pressure on Tuesday and Wednesday, and then Wednesday afternoon the CME Group raised futures margins on gold by 27%, to prompt still more long liquidation in gold.
Strong demand for physical gold worldwide, and especially from Asia, continues to underpin the gold market.
Recent strong physical demand for gold from China and India has supported gold prices.
FORBES: Comex Gold Weaker Amid Firmer U.S. Dollar Index, Weaker Crude Oil
That is why the dollar was so strong last week and gold prices fell, Dietrich says.
Strong physical demand for gold supported the price of the yellow metal throughout the week.
FORBES: Two-Faced Gold: Trying To Move From Risk Asset To Safe Haven
May silver futures did not see the strong downside pressure that gold experienced Tuesday and Wednesday.
FORBES: Comex Gold Sharply Lower, At 7-Week Low, As More Near-Term Chart Damage Inflicted
In the field events, Great Britain once again looked strong, winning four gold medals.
BBC: SPORT | Other Sport... | Disability Sport | Encouraging signs
But now gold is strong even as the dollar thrives and economies face deflation.
ECONOMIST: Burnished by bad news, gold looks like a good each-way bet
There were more reports overnight of strong demand for physical gold coming out of the Asian region, and especially India.
FORBES: A.M. Kitco Metals Roundup: Comex Gold Modestly Lower but Well Up from Daily Low
There were more reports Wednesday of strong demand for physical gold coming out of the Asian region, and especially India.
With gold still strong, some mining stocks are lagging the precious metal.
FORBES: 6 Gold And Agricultural Commodities To Buy And Trade
With world Central Banks set to begin the next phase of quantitative easing, there is strong justification to own Gold (NYSE:GLD) and Silver (NYSE:SLV).
What is certain is that the long-term fundamentals for gold remain strong, with a diverse and growing demand base, coupled with constrained supply side activity.
However, strong demand for physical gold did contain selling pressure.
Importantly, the gold and silver futures markets were ripe for corrective, technical and profit-taking pullbacks following recent strong gains that had sent gold and silver prices to multi-month highs earlier this week.
FORBES: Comex Gold, Silver Try To Recover From Wednesday's Shellacking
Headline risk aside, gold-market watchers said the underlying fundamentals for the metal remain supportive given the ultra-loose monetary policy by the Federal Reserve and other Western central banks and continued strong demand for physical gold from Asian nations.
FORBES: METALS OUTLOOK: Higher Prices Expected Next Week, But Outcome Hinges On Eurogroup Meeting
应用推荐