The Wall Street Journal reported that China had taken initiatives to ease up on its monetary policies in order to boost domestic financial institutions to purchase government bonds that would potentially enhance the Chinese financial system’s liquidity level. Throughout this gold buyers continued with a positive attitude towards the precious metal markets which stabilized the market globally even as talks of Greece being on the verge of defaulting on its debts caused a stir in the global markets.
Despite the high confidence oozing out of gold bugs, a stress factor was building over the horizon due to concerns of the stock market bubble that was expected to pop in the summer of ‘2014’ while the gold futures market bears will be supported by a technical advantage based on the natural caps placed on the precious metal commodities. Bullish markets were routinely coming to a screeching halt on a regular 3 week downtrend cycle producing a strong technical resistance at the high of $1,225.00. The silver market meanwhile has been keeping steady with resistance set at $ 17.00 leaving market players with very little room to speculate.
These incidences have created a positive outlook for the precious metal markets as industry players began to hoard up on their gold reserves with high hopes that gold would go back to the much anticipated 1,800 dollars per troy ounce level as most market players were hoping for bit coins to influence the market along with other economic and political problems that were brewing throughout the globe. However, much to the disappointment of industry players, gold prices remained steady and unless there was an actual economic ‘burn’, the precious metal markets are expected to remain steady for at least a another year. As a matter of fact gold prices slid from 1264 dollars per troy ounce in December to 1195 dollars per troy ounce in December 2014.