30 August 2011
Gold Coin Trading Thin as Seasonal Lull and Mainstream Media "Gold Bubble Drum Banging" Weigh on Activity
Gold coin and bar trading activity began the week in thin conditions according to BullionSupermarket.com the Gold and Silver price comparison site.
"Recent price volatility in both Gold and Silver might be having an effect. The traditional summer lull, combined with the recent hurricane on the US east coast and the media banging the Gold Bubble drum as hard as they can all add up to some headwinds for coin sellers.” said Jon Hunt founder of BullionSupermarket.com.
However as buyers exercise caution, Gold prices climbed 2.5% on Tuesday as President of the Chicago Federal Reserve indicated new stimulus measures might be needed to kick-start the US economy. His comments came on the same day as US house price figures recorded an annual 4.5% decline. This was spun by the mainstream financial media as stabilization of the housing market, the previous figure last month recording a 4.6% fall, the largest fall for 2 years.
The bailout of Greece may well be back to square one, as Finish insistence of collateral for the Finish portion of the Greek rescue deal, threatens to derail the package. If the rescue package falls at this hurdle, Financial markets, and Gold, are in for yet another wild ride.
At BullionSupermarket.com, an increased availability of small Gold bars saw 5 gram Gold bars traded at an average of 13.4% over the London Gold price.