Since yesterday gold has been trading in the range of $1190-1200. It did pick up in the last hour due to a weaker than expected PPI, with data showing it has declined for the first time in 18 months. This gives little hope to investors that there may be some doubt in the hike of the US interest rate this coming month.
Gold ETF sold 87,800 ounces in their last trading session, bringing this year’s net sales to more than 791,000 ounces.
Gold / silver ratio is still trading below the 85 level, with the market feeling it may revisit above that level in the upcoming days. The market is also looking at the gold /copper ratio, as it has dipped beneath 4 for the first time since November 2014, meaning that the rising price of copper has picked up due to the an increase in its demand for industrial production; whilst with the falling price of gold, investors are less concerned about hedging against economic uncertainty.
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