The gold ETFs experienced as drop earlier this Tuesday and have been moving around the $1400 mark that has a psychological significance as far as gold is concerned. The yellow metal reached a temporary high last Thursday before experience yet another drop later on Friday. The markets began positively this week before settling to its initial level soon after. The seesaw trend has been prevalent in the gold market of late.
The gold futures so far
The gold futures have experienced a significant slump in recent times with the August futures dropping by 1%, leading to a loss of about $14.50, and slumping from a previous high of about $1415 to $1388. The London Precious metal fixings too showed mixed signs with only modest changes taking place in the gold prices. As per the London Fix, the price of gold fell by about 0.2% leading to a loss of $3 and the final gold prices amounting to about $13990 per troy ounce. Silver on the other hand has performed slightly better when compared to gold. The London Fix estimates a slight yet significant rise in the silver prices compared gold. The silver prices are set at 0.4% higher with a $1 gain. As a result, the silver prices now stay put at $22 per troy ounce.
This has led to a strange dilemma in the market Investors are not sure if it is the right time to sell or the right time to buy, as far as short-term trade is considered. This is likely to continue until a catalyst of some kind decides the directions in which gold is headed. Until then uncertainty prevails.
Bullion coin sales so far
The sales of wholesale bullion coins have seen a rapid increase this fiscal year as opposed to the previous one. There has been a huge demand in the markets for bullion products from the US Mint. As per recent reports, all authorized purchases of silver bullion amounted to about 238,500 troy ounces of silver products, and about 8,000 troy ounces of gold products.
In addition to this, the second edition of the proposed series of ‘America the Beautiful’ coins have been released recently. The new release is being named as Perry’s Victory. The first release involved a tribute to the famous national park of White Mountain. These bullion coins made record opening sales of about 8,900 coins, and 44,500 troy ounces of silver.
Is it the right time to buy?
As far as bullion coins are concerned, the demand never seems to diminish. Investors are constantly making use of the opportunity to get easy exposure to the precious metal. In addition, since the prices have been decreasing steadily over a period of two years ranging from September 2011 to a massive sell out earlier this April, the gold prices have no other go, but to eventually come back as stronger than ever. As a result, even though there is no catalyst to move the gold prices up yet, it would be best to take advantage of the low prices.