from Gold Silver Security:
As I have been pointing out in our blogs this week; although we are all believers in the fundamentals underpinning the precious metals story, things are not looking as great for the metals right now as we would like, short term. Although this could turn around with more Autumn Asian demand, the limbo from the continual “We will” and “We won’t raise interest rates” yo-yo the Fed is keeping markets in is causing too much uncertainty for gold to take off. This is compounded by the back and forth of good and bad news from government reports.
With oil and the commodities sector in general tanking along with the dollar making steady gains, it is very hard for Western speculators to want to hold on to an asset which, in their words, does not offer ‘yield.’ Unfortunately, this is the perspective of most Western speculative traders, and although they have become suspicious of the whole recovery story, they are still buying into it to enough of a degree that they will not exit the markets.
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