FOLLOWING a high of over £220 per troy ounce in mid-June, the market price has steadily declined to plateau at a nominal £202 per ounce, report Michael Bloomstein (Precious metals) of Brighton.
Contributing factors to the decline are the easing of tensions between India and Pakistan, and the Swiss National Bank’s sales of gold in late June, say Bloomstein’s. The price decline has apparently been halted by increased demand for physical metal in India and the Middle East.
The continuing weakness of the US dollar, which was valued at less than one euro last week, has caused the decline in the dollar price of gold to be less marked, and the stream of US corporate accounting irregularities has done nothing to reverse the trend. In the current climate, Bloomstein conclude, commentators see no major change in the sterling price outlook.