UK Bank Holiday Spells Thin Markets in Wake of Gold Uptick From Friday, Next London Gold Fix Wednesday
Gold appreciated Friday approximately $65 on poor employment numbers and a JPMorgan forecast revising its Q3 outlook for US GDP by a percentage point. This uptick in gold, as well as silver and platinum, precedes a public banking holiday in the UK and Australia. There will not be a gold fix until Wednesday. Historically on this Monday’s holiday, the Spring Bank Holiday, which also coincides with the Queen’s Diamond Jubilee, gold prices show no clear pattern, but the thin markets and a closed London has, in two of the last three years, meant positive gains for yellow.
In 2011, no significant movement is recorded, just your typical tiny peaks and valleys.
In 2010 on this holiday, gold showed strength, climbing from$1214.30 to $1220.40.
The previous year, in 2009, gold had a more considerable uptick, climbing from $1,557-$1,573.
Based on very recent history and a cursory look back, gold does not show measurable signs of weakness during the Spring Bank Holiday in the United Kingdom. When combined with the momentum gold took into the end of Friday, it appears as if Sunday-Tuesday could lead a continuation of Friday.