Gold prices ended the U.S. day session near unchanged levels in subdued U.S. trading Monday. There were no major, fresh news developments in the world marketplace and the summertime doldrums have taken over in many markets. December Comex gold was last up $3.20 an ounce at $1,346.40. September Comex silver was last up $0.162 at $19.87an ounce.
World stock markets were mostly firmer Monday. Many global equities market indexes are at or near record or multi-year highs amid major economies that are awash in central-bank-infused cash. The U.S. stock indexes set new highs Monday. The rally in world stock markets has been a bearish element working against the competing asset class, safe-haven gold.
The key “outside markets” on Monday were in a bullish daily posture for the precious metals markets: The U.S. dollar index was slightly lower. Nymex crude oil prices were higher and hit a four-week high.
The week started off on a positive note for gold. It rose $3.00 per ounce (at 4PM Eastern Time) with a tangible assist from a weaker dollar. Silver rose as well, more or less in the same fashion, but with more upward momentum provided by regular trading.
The weaker dollar seems to be in tentative trading territory, however, as there is much in the way of mixed messages stemming from various data releases. Employment is up but spending is down. Housing seems to be booming but large segments of the society can’t get a mortgage. 2016 looks to be the second biggest U.S. car sales year on record. Wages and inflation aren’t budging in real terms.
Billionaire George Soros isn’t waiting around to see if this year’s surge in gold-mining shares will last.
Soros Fund Management LLC, which took a $263.7 million stake in Barrick Gold Corp. in the first quarter, cut its holdings in the world’s biggest producer of the metal by 94 percent in the ensuing three months, a U.S. regulatory filing showed Monday. After climbing 169 percent in the year through June, its best-ever performance for the period, Barrick shares have slipped from a three-year high reached last month.
Toronto-based Barrick, Soros’s biggest holding in the first quarter, was the investor’s biggest sale in the second quarter. The holdings in Barrick slumped by 18.35 million shares to 1.07 million shares, according to a filing released Monday.
As Soros cut his stake in Barrick, which surged 56 percent in the second quarter in Toronto trading, he bought 240,000 shares of SPDR Gold Trust, an exchange-traded fund that tracks the price of gold. In the first quarter, his firm disclosed owning call options on 1.05 million shares in the ETF.
Gold is at a key juncture and minutes from the July meeting of the Federal Open Market Committee, due out Wednesday, plus speaking appearances by regional Fed presidents this week could dictate near-term price direction, says Mitsubishi.
Reference: Bloomberg, KITCO
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