Gold Prices May Soften as August Approaches

Gold prices reached approximately $4,138 in recent trading sessions. According to Jeffrey Christian of CPM Group, this may be the near-term peak for gold prices. In his analysis, Christian explains why gold and silver could soften during the first two or three weeks of August.

The August COMEX gold futures roll is largely behind the market now that open interest in the August contract has fallen from 27.5 million ounces at the end of June to 2.7 million ounces. Most of those positions moved into the December contract, indicating a shift in investor sentiment.

Silver continues to trade around $60, with CPM Group expecting both gold and silver to face short-term pressure before prices potentially strengthen during the final four months of the year. Christian also discusses platinum and palladium, which remain weaker than gold and silver.