Gold spot price ranges
USD: 661.90 – 649.30
NZD: 874.00 – 855.00
NZDUSD: .7650- .7525
A busy week – the Reserve bank has again intervened with the exchange rate locally, it doesn’t appear to be having much impact however with record highs recorded on the NZDUSD cross. This of course makes it a good time to look at buying gold in New Zealand dollars, as the high exchange rate suppresses the price.
Gold movements: The stronger US dollar and US Treasury bonds have kept the price fairly static, there is currently a strong support above $650/oz and we’ve seen a period over $660 later in the week. The long term prognosis is still quite positive with demand being predicted high enough to easily absorb the future sales by the Central bank (Swiss Natural bank selling 250 tonnes for example).
Oil prices have also played a part - with the crude prices dropping back below $70/barrel with the strike in Nigeria not expected to have a large impact on the market.
A labour strike in the gold mines in South Africa has been postponed until after talks are held on July 2. The labour demands are for 15% wage increase as well as 61 other demands. This could have quite an impact so would be well worth watching.
The lower prices seen over the last month are being viewed as a consolidation period, prior to another bullish growth period in the gold market. With the increase in investor interest towards Gold and Silver, and the demand for alternative investments increasing, there is a positive attitude to the medium and long term view for the strength in the precious metals.
Following on from last weeks article about Egypt reviving some of their Gold mines -
Clue to Egypt's Gold Source Discovered
