The South African Standard Bank issued its daily commodities analysis for June 28th. The report focused on oil demand surge.
The bank analysts said that gold is testing the $1,200 level. The volume of puts around $1,200 strike on COMEX gold futures for August delivery increased considerably. Gold traders and investors wait for the next week’s U.S. Non-farm payrolls report to decide where to put their money.
Gold correlation with the U.S. equities returned to the way it was pre-launching of ETFs. Now, gold and equities are negatively correlated as they were between 1990 and 2003. Therefore, gold might become a better diversification investment tool for investors if that’s the case. Moreover, gold prices might slump even more if the U.S. equities kept its performance better than expected.
Full Report: standard_jun282013