Categories: Precious Metals
Topics: General Precious Metals

Investment Demand Sustaining Gold’s Run

Investment Demand Sustaining Gold’s Run
By Joe Foster, Gold Strategist

Market Review

Following the June 23 Brexit vote when the U.K. chose to withdraw from the European Union, bond yields fell to record lows and gold rallied to two-year highs, reaching $1,375 per ounce on July 6. In the U.S., subsequent strong economic results in manufacturing, retail sales, and housing created U.S. dollar strength and gold consolidated its Brexit gains, declining to $1,310 per ounce on July 21.

However, as was the case throughout the post-crisis expansion, good economic news doesn’t last long and the month ended with disappointing durable goods and pending home sales reports, along with second quarter GDP growth of just 1.2%. The U.S. dollar reversed course and the gold market demonstrated its resilience, advancing to end the month with a $28.80 per ounce (2.2%) gain to  nish at $1,351 per ounce.

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