INTL FCStone looks for gold prices to perform better in July than they did during a 'miserable' month for the metal in June. Analysts expressed surprise that gold fell last month, considering the dollar index 'flatlined,' Treasury yields fell, inflation picked up in the U.S. and Europe and equity markets were wobbly.
They chalked up gold's declines to the general rout in commodities. In a monthly commodities outlook, INTL FCStone says “we are loathe to pick market bottoms, particularly when prices are falling, but have to suspect that gold will do somewhat better in July and doubt that the same set of aforementioned variable factors (should they persist) will contribute to another leg lower.
In fact, so far in July, gold’s tone has improved somewhat and we see that continuing as we head deeper into the month; we see prices trading between $1,225-$1,295 in July.” Analysts list a potential July range of $15.60 to $16.60 for silver prices.
Source: Kitco News