Standard Bank Daily Gold Price Analysis for June 28, 2013

Standard Bank

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