With the Hong Kong government pulling the extradition law earlier this week, the UK government abandoning the attempt to delay Brexit and news this morning that the US and China have agreed to an October trade meeting in Beijing clearly knocks some safe haven longs from gold this morning as that punctures a number of bull themes.
Furthermore US officials have indicated that ministerial level meetings will be held over the coming weeks in Washington and that could add to risk on pressure in gold and silver.
Cushioning the gold and silver markets this morning is news that ETF's increased their holdings of gold yesterday for the seventh straight session with 120,179 ounces purchased yesterday bringing the total gold purchases to 8.32 million ounces.
The gold market might also derive some fresh psychological support from reports that gold ETF holdings earlier this week saw holdings climb above the $1 billion mark which gives credence to the gold bull market and provides advertising for gold derivatives which include futures.
Silver ETF's also added 117,508 ounces bringing this year's net purchases to 113.9 million ounces.
We invite you to subscribe to receive our more comprehensive market update delivered directly to your inbox.
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.
