Marex Spectron Bullion Thoughts

Despite what various news services and market commentators would have you believe, there is no trade war between the US and China. There is the threat of one, but it is a long way off and there will be plenty of rhetoric and backroom negotiations before anything is actually concrete. However, as per usual the market and various participants got over excited yesterday and decided that this was a reason to buy gold (it really wasn’t!). We were at the top end of the range and with a spurious reason for buying it, what yesterday actually provided was a good chance to sell. Luckily, enough people worked that one out and after a high of 1352.50 on June, we are now trading at 1330.

The market continues in its range bound state and even though the momentum buyers and sellers get stung every time, they still seem to hang onto the belief that it will work one day. It probably will, but when they least expect it and for the time being, unless something definitive happens in the global economy or geopolitically, continue to trade the range.

The dollar remains fairly moribund and the stock market somewhat volatile. Watch these for short term moves as always. Today sees little in the way of economic releases apart from Initial Jobless Claims and with the market sitting near the middle of the range, I wouldn’t expect too many fireworks ahead of tomorrow’s major employment numbers. We will play the waiting game ahead of those.