Los Angeles CA, August 11 (Tangible Investments) - by James O’Dell - Gold and Silver prices retreated on Friday as the metals consolidate, with Gold easing $4.15 or 0.32 percent to end the week at $1,309.30 an ounce, as shorter term investors drawn by the spreading geopolitical unrest, took profits when Russia announced an end to troop maneuvers near Ukraine's border which saw tensions in the area diminish somewhat. The price of Silver dipped $0.07 or 0.35 percent to finish the week at $19.91 an ounce, while the Gold/Silver ratio inched higher to 65.76.
Gold has held above its most widely followed moving averages, including the 200-day, 100-day, the 50-day, the 20-day and the 10-day MA. Volume in the yellow metal remains low but volatility has picked up. Interest in Gold from short-term tactical investors increased amid geopolitical unrest, but physical demand is lagging so far, said Barclays on Friday.
"The only supporting factor for Gold right now is the geopolitical situation. Though we have seen some easing in tensions over the weekend, the underlying problems have still not been resolved," said Ronald Leung, of LeeCheong Gold Dealers. George Gero, of RBC Capital Markets, reported that Russia was willing to talk. “That turned S&Ps around,” said Gero.
"We had profit-taking in the Gold because of that from the get-me-out-for-the-weekend crowd.” Still, added Gero, geopolitical tensions remain on several fronts, including Ukraine, the crisis between Israel and Hamas, and U.S. air strikes on Islamic State fighters in Iraq. “So I don’t see any geopolitical improvements so far anywhere,” said Gero. “That means there will still be haven seekers either in Treasurys or Gold.”
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