The gold market continues to fight off a three day high to low washout of $40, with a bounce of $13 and has forged part of the bounce in the face of dollar adversity. It does seem as if the gold market was pressured while silver prices were held back yesterday because of the chain reaction of a resumption of trade talks which in turn lifted the dollar.

In our opinion, the dollar ultimately was lifted because of the trade news as US scheduled data in the same timeframe should have pressured the greenback.

In looking forward the gold market should draft support from news that the Russian central bank bought 18.6 tons of gold in June bringing the year to date purchases to 96 tons for the first six months of 2019. The Russian central bank has reportedly 2208 tons of gold as per a recent Russian central bank report.

The gold market continues to be supported while silver continues to be lifted by rate cut hopes but both markets continue to see ongoing inflows into ETF's. Apparently the world's second-largest gold backed ETF on Monday saw its biggest inflow in more than a year while the smaller silver I-shares trust on Monday pulled in 146.5 million ounces which is the most since 2013.

However total Gold ETF holdings yesterday declined by roughly 80,000 ounces. Yesterday silver back ETF's jumped the most ever and extended their inflow pattern to a 12th straight session.

Yet another supportive element for gold came from bullish comments from the Commonwealth Bank of Australia and Sprott-Asset-Management.

Minimally countervailing the upward track in gold prices this morning is news of a 19% second quarter gold production gain from Polymetal. On the other hand Russia's Polymetal pegged its silver production to have declined by 11% in the first six months of this year relative to year ago levels.

Early today gold was given a lift by higher gold closes in Hong Kong and Shanghai. In the end the path of least resistance remains up in both gold and silver.

It should be noted that one metals fund manager overnight indicated that gains in gold prices should result in even larger gains in silver prices. Not surprisingly, silver continues to see a series of bullish price forecasts with another fund manager projection yesterday calling for $17.00 silver pricing late this year and $18.75 pricing at the end of next year. Yet another fund manager projected silver to have another 40% of upside capacity.

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Non-Reliance and Risk Disclosure: The opinions expressed here are for general information purposes only and should not be construed as trade recommendations, nor a solicitation of an offer to buy or sell any precious metals product. The material presented is based on information that we consider reliable, but we do not represent that it is accurate, complete and/or up to date, and it should not be relied on as such. Opinions expressed are current as of the time of posting and only represent the views of the author and not those of Zaner Financial Services LLC, unless otherwise expressly noted.