Both metals have since broken out of their July trading ranges, with gold and silver advancing 15% and 20% respectively month-to-date in August.
Precious metals markets traded largely rangebound throughout July, with gold delivering a monthly return of just 1%, rising to USD $4,052 per troy ounce (oz) by month end. Silver on the other hand experienced a marginal decline, falling 1.5% to USD $57.7oz.
Both metals have since broken out of their July trading ranges, with gold and silver advancing 15% and 20% respectively month-to-date in August.
The subdued price action in July, compared with earlier this year, is unsurprising given the macro headwinds at play. Rising real yields, a stronger US dollar (DXY) and a rate rise in the U.S. by December looking probable, continue to weigh on both metals.
The long-term outlook remains positive, with central banks remaining as a key pillar of demand. Central banks have purchased ~364 tonnes of gold year-to-date with expectations of net purchases to total 700-800 tonnes by year-end.
Technical indicators suggest both precious metals have experienced a textbook correction that mirrors a range of other pullbacks that we have seen within the secular bull market since 2000.
At The Victoria Bullion Exchange, we continue to see strong levels of new account activations and while demand for key physical products is robust.
Call us with any questions:
1-888-300-8809
