September will be critical month for Gold investors: Sharps Pixley
NEW YORK (Scrap Monster): September will be a "critical month" for gold investors, said Sharps Pixley in a commodity snippet.
According to Sharps Pixley, India, where demand has been soft so far this year due to tax hikes and a weak rupee, is entering its seasonally strong period.
The market will be watching to see if the Federal Reserve launches more quantitative easing, with Chairman Ben Bernanke speaking at a Jackson Hole, Wyo., symposium Friday, followed by a meeting of policy-setters in mid-September.
They continued that, "September will be a critical month for investors not only because of the Jackson Hole conference…but also due to the various announcements out of Europe."
"The ECB's president, (Mario) Draghi, would not attend the Jackson Hole conference as he prepares for the ECB meeting on 6 September when another bond purchasing program may be announced. The 'Troika' will also decide if Greece has met the conditions for country aid while Germany will rule on 12 September whether the ESM (European Stability Mechanism) is constitutional or not," Sharps Pixley concluded.
Global gold prices are modestly lower in early U.S. trading on Wednesday, on some more profit-taking and on chart consolidation. The market place is quieter as traders and investors wait for an important speech by U.S. Federal Reserve Chairman Ben Bernanke on Friday.
The outside markets are in a mildly bearish posture for the precious metals so far Wednesday, as the U.S. dollar index is firmer and crude oil prices are weaker.
December gold last traded down $4.10 at $1,665.60 an ounce on the Comex division of the New York Mercantile. Spot gold was last quoted down $3.60 an ounce at $1,663.50. December Comex silver last traded down $0.215 at $30.75 an ounce.
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