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1 Jul 2014
Gold up, up and away on strong demand
FXStreet (Guatemala) - Gold has rallied with the dollar taken lower in a repatriation of funds post a higher performing S&P over the month of June and profit taking on rebalancing of fund manager’s books.
The dollar index has come down and demand for the carry trade and Asian markets is on the increase also. There is of course the requirement for the safety of the yellow metal with the Iraq situation and technical buying is coming into play giving us the biggest jump in nine months in Comex at 1,317 from 1,271 on the first section of the rally, and now we are spiking on the spot gold to just above the 1,332.00 mark. “Iraqi troops battled to dislodge an al Qaeda splinter group from the city of Tikrit on Monday after its leader was declared caliph of a new Islamic state in lands seized this month across a swath of Iraq and Syria” - Reuters. Call options were coming in above 1,300 also in a ten fold increase of the price yesterday on the one month for July giving us a clear indication that there is demand still coming through and gold mining stocks are also on the increase also telling us the whole story right there.
The dollar index has come down and demand for the carry trade and Asian markets is on the increase also. There is of course the requirement for the safety of the yellow metal with the Iraq situation and technical buying is coming into play giving us the biggest jump in nine months in Comex at 1,317 from 1,271 on the first section of the rally, and now we are spiking on the spot gold to just above the 1,332.00 mark. “Iraqi troops battled to dislodge an al Qaeda splinter group from the city of Tikrit on Monday after its leader was declared caliph of a new Islamic state in lands seized this month across a swath of Iraq and Syria” - Reuters. Call options were coming in above 1,300 also in a ten fold increase of the price yesterday on the one month for July giving us a clear indication that there is demand still coming through and gold mining stocks are also on the increase also telling us the whole story right there.