Gold continues to rattle around $1500 mark. UBS says seasonal factors about to kick in.

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(USAGOLD – 9/26/2019) – Gold continued to rattle around the $1500 mark in a continuation of the price weakness begun yesterday.  Though a number of factors are working on the price at this juncture, the ebb and flow of trade negotiations between the United States and China has become the dominant influence – at least for now.  Gold is level on the day at $1507.  Silver, the more volatile of the two primary precious metals, is down another 13¢ at $17.85.  Over the past two days, the dollar has been the chief beneficiary of renewed optimism on the trade front.

UBS, the Swiss-based investment banker, says seasonal factors are about to kick in for gold which will lend support to the metal through the remainder of the year. “With gold prices holding well, the fear-of-missing-out is likely rising,” says Joni Teves, a strategist at UBS’s global research team. “This is encouraging and implies that any downward pressure coming from macro factors over the remainder of the year is likely to be absorbed by fundamental demand. . . The continuation of gold’s uptrend should eventually attract more investment interest as well as momentum buyers.” US-based funds, says the bank, were responsible for two-thirds of the inflows into gold ETFs so far this year. (as reported at MiningNews.net)  Most of that demand, we would add in turn, has come from funds and institutions hedging a lengthy list of market uncertainties.

Quote of the Day
“Most of these people [living in emerging nations] don’t really understand what is happening outside their boundaries, so they have no option but to buy gold, silver, and currencies of Western countries. And that is why I think support for precious metals will continue to increase going forward. I don’t know what influence it will have in pricing, but really, if I had to suggest to someone on how to preserve his wealth, my suggestion would primarily be focused on gold and silver.” – Jayant Bhandari (StreetWise Interview with Maurice Jackson)

Chart of the Day

Chart courtesy of HowMuch.net

USAGOLD note:  This chart will come as a surprise even to those who monitor the global economy and financial markets on a regular basis.  Gold is by far the largest form of money in circulation – over five times larger than the dollar’s circulation. The euro is a distant third, and silver, surprisingly ranks fourth.

Source: USA gold