Markets Await Inflation Figures

"Market awaits UK, U.S., China and eurozone states inflation data."

Gold is lower in Asian and early European trading on low volume as the dollar has risen and renewed risk appetite has resulted in tentative gains in equity markets. Gold's marginally higher weekly close last week was positive from a technical point of view and could lead to follow through this week as momentum following traders and funds "make the trend their friend."

Gold is currently trading at $1,207/oz and in euro, GBP, CHF and JPY terms, at €960/oz, £804/oz, CHF 1,284/oz., JPY 106,825/oz., respectively.

Silver's price action was even more positive and silver rose 1.5% last week (see below) while gold and silver mining shares surged in value. Much of the speculative froth that had entered the market has been eliminated with speculative longs rushing for the exit in the recent selloff. There has also been significant short covering by the commercials, which might indicate that higher prices are expected after this correction.

Gold in USD—60 Days (60 Minutes)

The market awaits inflation data this week (in eurozone states, the UK, U.S. and China), which will indicate whether the extremely lose fiscal and monetary policies of recent months (and indeed years) are leading to inflation pressures. UK inflation figures will be closely studied tomorrow after worries from Bank of England rate-setter Andrew Sentance about prices rising despite the economic slack created by the recession. The very poor trade and current account deficit figures may lead to the sterling coming under pressure in the coming months.

Announcing Streetwise Live! Events
Source: Streetwise Reports (07/13/2020)

Streetwise Reports is offering 100 investors—at no charge—the opportunity to meet via Zoom with executives of precious metals companies as they discuss recent developments at their companies and upcoming catalysts.

"China's export quota could be opportunity for Canadian miners"

Mexico: Gold's Next Powerhouse Player
Source: Marc Davis, BNW News (11/03/2009)

As the world's key gold producing nations struggle mostly in vain to replenish dwindling below-ground supplies, Mexico is bucking the trend in a big way.

Where Have All the Gold Mines Gone?
Source: Brent Cook, Exploration Insights (04/14/2009)

Given the declining global gold production, mining companies’ demand for reserve replacement and the acute dearth of new gold discoveries, there is no doubt that real economic discoveries will be exceptionally valuable. . .the opportunity for stellar profits is the best it has probably ever been. Identifying the few successes, however, will require vigilant and constant technical assessment of geology and drill results, always with an eye to mine economics.

Congo Completes Mining Review, Says Majors Quit Talks
Source: Reuters (12/20/2008)

"Review process is extended an additional 45 days to allow six companies to return to the negotiating table for direct talks with government ministers."