Gold and silver prices rose together for the first time in seven weeks, but the metals stayed within well-defined ranges during quiet, end-of-summer trading, setting the stage for positive seasonal factors and possibly rising prices in the period ahead. The strengthening dollar continues to be a major impediment to higher metal prices and dollar bearish developments are sorely needed for any sustained gold rally this fall.
Safe haven demand remains strong due to developments in both Ukraine and Iraq while gold buying in Asia has stayed soft, as is usually the case at this time of the year. With stock markets reaching fresh record highs and investors bidding bond prices higher as well ahead of an important Federal Reserve meeting in September, look for volatility to return and for gold and silver prices to soon break free from their recent trading ranges.
For the week, the gold price rose 0.5 percent, from $1,280.80 an ounce to $1,287.20, and silver gained six cents to $19.46 an ounce. Spot gold is now up 6.8 percent for the year, still one-third lower than its record high of over $1,920 an ounce three years ago, and silver moved back into positive territory for 2014, now up 0.1 percent for the year but still 61 percent below its all-time high of about $50 an ounce reached in early 2011.
After a June surge (a month during which prices normally move lower), it’s been a difficult summer for the monetary metals that always seem to run into some sort