Morning Snapshot: Gold moving sideways early

Gold continued to move quietly higher this morning with most of the markets waiting around to hear from the Fed.  Gold is trading in $1312 range up slightly from yesterday. Silver is trading flat at $17.32.  Gold reversed course late yesterday after President Trump’s latest salvo leveled at North Korea, coming off a low in the $1306 range yesterday.

The Fed will announce its policy decisions today noon MT and Chairwoman Janet Yellen will hold a news conference at 12:30 MT.  We may have more for you then . . .

No surprise to readers who follow the USAGOLD blog, but confirmation neverthesess:

“Speculative positioning in gold,” reports Economic Times, “has been on the rise since mid-August wherein hedge funds and money managers were net longs at 138,566 contracts, which has now increased to 249,588 net longs as on September 5, clearly defining the road map for rising price of the yellow metal.

As far as investment demand goes, inflows in the SPDR gold trust have grown by 22 tonnes since August and the current holdings as on September 14 stood at around 838.64 tonnes, reflecting the incremental demand arising out of geopolitical worries.”

USAGOLD note:  We are not sure we would go along with the “demand arising out of geopolitical worries” as the chief reason professional investors are gold – a rather simplistic view.  There is considerably more going on with respect to gold than the roller coaster ride imposed by the North Korean situation.  Geopolitical concerns are one of many in the list of gold investor concerns – an important one but still on a longer list of factors.


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