NEW YORK (Scrap Register): 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 said “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; INTL FCStone sees prices trading between $1,225-$1,295 in July. Analysts list a potential July range of $15.60 to $16.60 for silver prices.