Gold at a 50 day low

With positive company data out of the US and many northern hemisphere traders thinking more about burgers than bullion, volumes are right down for gold and the spot price has taken a hit.

It seems local sentiment for physical isn't reflecting the price. New Zealand Mint is seeing a number of New Zealand clients increasing their holdings of physical metal, seeing the price dip as a buying opportunity.

Mike O'Kane at New Zealand Mint commented "we are seing more long term clients getting back in to the market at the moment."

Marianne another trader at the Mint noted "It isn't just the existing clients, I have had quite a few fist time buyers who have been watching the price decide that it is time to book in their order."

The Australian has reported that the generally positive results for the stress test have resulted in some of the fear premium coming out of gold.

The article also notes that demand for gold is coming from physical right now, rather than ETF's (electronically traded funds).

Gold's 100-day moving average and long-term support trendlines lie within the $US1174-$US1181 range, said Walter de Wet, a precious metals analyst at Standard Bank in London.

"In the physical market, buying interest is providing support around this crucial technical range for gold," he said.