June 2017 Summary
Gold prices fell $26.50 in the month of June to close the month at $1,242.50 for a 2.09% loss. Quarter over quarter, prices lost $6.50, or 0.52%. Through 2 quarters in 2017, gold prices are up $90.50, or 7.89%.
Gold prices rallied at the beginning of June. The dollar was weak; US economic data was soft and May Indian imports were higher year-over-year. Terrorists struck in the UK and there was Mid East tension over Qatar. Later in June, UK elections were to come and Comey was to testify. However, the Fed was expected to raise rates mid-month.
Prices traded to the month’s high of $1,295.75 on June 6th and then began a steady decline – by the 13th prices hit $1,267.25. On the 14th, the day the Fed tightened, prices traded as high as $1,282.50, but the downtrend reasserted itself the next day, and by the 21st prices had traded $1,241.25. Geopolitical issues mentioned earlier were not impactful. The dollar had turned up and Fed members made hawkish comments.
On the 26th we learned Chinese imports from Hong Kong were down 40% month-on-month but the top story was a sale of over 18K lots on Comex — the equivalent of 1.8 million oz. – within 1 minute. Market participants speculated it was a “fat finger” error, as trading such massive volumes in a flash did not seem logical. Prices fell over $20.00 intra-day on the 26th, but the low for the month was not seen until the 30th, when prices dipped to $1,236.75. This price slump occurred against a backdrop of a weakening dollar and higher Treasury yields.
In other markets in June, silver and platinum fell 4.02% and 2.54% respectively. Copper and palladium rose 4.49% and 0.26% respectively.