Each weekday, Cash4Gold will troll through the web's gold banter and post some of the bigger or more interesting stories. Following is a run-down of today's features:
"FOCUS: Gold Market Enters Seasonally Soft Summer Period"
Author: Allen Sykora
Main Points: Gold prices could drop during the summer due to a historical investment slowdown and an inflation that has yet to come as a result of continued economic sluggishness.
"We expect prices to head lower," said Carlos Sanchez of research with CPM Group, "possibly to $860 or $840. Weakness would be due to fabrication demand being reduced. Usually, gold-gift-giving holidays occur at the beginning of the year and latter part of the year, not only in developed countries but developing countries like India and Pakistan."
James Moore of TheBullionDesk.com concurred, adding that "given the fact we haven't seen a step-up in buying interest, maybe we have to go back to the $880 area and maybe even back to the $850 before we can pick up fresh buying."
Analysis: It appears the bull run is over, and selling will continue for the immediate future. We haven't covered the summer lull much in the past, but it will certainly dent any upward potential that the precious metal has for now. Gold still has long-term potential given the likelihood of another run once inflation hits, but that may still be some time. The bottom is likely a ways away.
Gold remained largely unchanged to close the week, finishing at $933.75 an ounce.