Despite a barrage of gold advertising run on right wing media broadcasts, Gold dropped 3.2 percent July 1st. Gold's biggest one-day drop in five months, despite the poor economic reports that generally would support gold as a safe haven.
Gold prices have fought to stay above the $1200 level, falling to a six-week low Wednesday near $1185 an ounce after an equities rally killed demand for precious metals. Prices reversed course later in the day on fresh bargain buying to close at $1203.20 an ounce.
Thursday Gold futures began falling as a more optimistic economic outlook started to take over the markets, decreasing the demand for safe haven assets like precious metals. Instead, investors turned their sights on equities and oil after the US Labor Department and top US retail chains released reports that helped boost confidence in economic recovery. Gold prices cut as low as $1186.50 an ounce before reversing coarse mid-day to close at $1199.50 an ounce on the COMEX.
Many Factors are influencing the gold market and stirring debate between the bear and bull camps including the euro-gold trade, namely, China’s stance toward gold reserves, Central Bank buying (and now selling!), and physical demand promoted by hefty ad campaigns being aired on every right wing radio commentary.