Last week, German Bund yields dipped to new historic lows and US 10 year bond yields have also dropped sharply. In addition, recent flows into gold exchange traded funds (ETFs) have been positive. Some equity money has been moving back into gold and the precious metals for diversification purposes as the equity rally becomes increasingly extended.
“At a time of escalating geopolitical risk in the Ukraine, Russia and the Middle East, with increasing volatility in equity markets and declining real yields investors are again looking to Gold’s defensive properties to offset potential declines in more cyclical assets.
On the Comex division of the New York Mercantile Exchange, gold futures for August delivery traded at $1,311.80 a troy ounce, down 0.16%, after hitting an overnight session low of $1,308.00 and off a high of $1,319.00.
Silver for September delivery was down 0.28% at $20.953 a troy ounce. Copper futures for September delivery fell 0.05% at $3.197 a pound.
At $1312 levels Investing.com charts signal neutral trends on a daily basis while on an intra-day strong selling is indicated.