Gold drops for second week – Sabayik

Gold price dropped to $1.322 per ounce pursuing a downward tendency for the second week in a row, following a six-week bullish trend, buoyed by relative recovery of the US dollar value, according to Sabayik Al-Kuwait for commerce and precious metals trade company.

The gold was also affected with risk appetite on part of the stock markets, post the positive results by the stock markets, following positive declarations by majority of companies in Q2 2016, as well as continuing decline of the euro and the sterling pound.

Sabayik Al-Kuwait said in its report, issued on Sunday, that fall of the euro and sterling pound came after the European central bank announced, on Thursday, maintaining the interest rate unchanged.

Profit generation also contributed to slashing the ounce value, where on Wednesday it stood at $1. 313.

It forecast rebound where the ounce value would exceed $1.330, and probably would climb to $1.375, within the coming month, advising investors to wait till August 4th or 5th when the picture will become clearer and the central banks declare their next financial policies.

Meanwhile, the silver closed at $65.19 per ounce. (KUNA)