Mostly: Classical

[amarksp]

Martin M sightings...
"We're only within a few dollars of the last correction in June," notes Vancouver-based gold watcher Martin Murenbeeld. It closed at its last low of $562.30 on the New York Mercantile Exchange on June 14.

The culprits include the U.S. dollar — which usually moves in the opposite direction of gold — showing some surprising recent strength and tensions on the world political stage easing up a bit, he explains, noting gold is always more attractive in times of uncertainty.

Declining oil prices have also fuelled speculation that demand for raw materials may be easing.

"We would need a geo-political shock to get back to $700. I don't think the market is in the mood to hit that price level right now," says Murenbeeld. "We'll just have to wait this out."

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The recent strength in the U.S. dollar, worries about an economic slowdown and the plunge in commodities such as oil have all contributed to the drop in the price of gold to $583 (U.S.) an ounce from more than $700 an ounce in May, said Martin Murenbeeld of Victoria-based M. Murenbeeld & Associates Inc., publisher of the Gold Monitor.

There is a certain sense that the strength in the U.S. dollar is not sustainable, Mr. Murenbeeld said. “But right at the moment, the U.S. dollar is looking pretty darn good.”