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Gold has had a good summer, rising more than 9 percent, but that move may be just the start, according to a bullish Citi precious metal analyst . . . . 

Since 2009 we have seen the signatory central banks of the Central Bank Gold Agreement cease selling their gold. We’ve stated many times in the past that the entire exercise of selling gold by these European central banks was to support the birth and establishment of the euro. They felt this was achieved by 2009, 10 years after the launch of the euro . . . .

Due to China’s huge size, its developing economy is having a growing influence on the global economic system.  One commodity that has been particularly strongly affected by Chinese popular demand is silver and other precious metals like gold.

Not only has the Chinese government been moving toward holding precious metals in reserve as an alternative to paper currencies like the U.S. Dollar, but it has recently also encouraged its citizens to own precious metals as a way to store their wealth in a valuable physical asset . . . .

The gold standard has returned to mainstream US politics for the first time in 30 years, with a “gold commission” set to become part of official Republican party policy  . . . .

World Gold Council released its 2nd quarter Gold Demand Trend report showing gold demand of 990 tonnes worth $51.2 Billion. 

The report shows demand for gold jewelry has weakened from last year, but central bank buying as . . . .

Billionaire investors George Soros and John Paulson increased their stakes in the biggest exchange- traded fund backed by gold as prices posted the largest quarterly drop since 2008 . . . .

There are increasing signs that Spanish Prime Minister Mariano Rajoy appears amenable to a European-Union bailout for Spain, despite the fact that this would mean to all intents and purposes relinquishing his government’s remaining fiscal sovereignty to Brussels. The FT’s David Gardner notes that Rajoy’s government has . . . .

A number of so-called experts are proclaiming that gold’s price is in a bubble that has burst.  However, actual market activity signals that demand for physical gold is draining available supplies . . . .

Erste Group Research
Gold Report
11 July 2012

The foundation for new all-time-highs is in place. As far as sentiment is concerned, we definitely see no euphoria with respect to gold. Skepticism, fear, and panic are never the final stop of a bull market. In the short run, seasonality seems to argue in favor of a continued sideways movement, but from August onwards gold should enter its seasonally best phase .

USD 2,000 is our next 12M price target. We believe that the parabolic trend phase is still ahead of us, and that our long-term price target of USD 2,300/ounce could be on the conservative side.

View the complete 120 page report at:
http://www.mintstategold.com/ebay/articles/In_Gold_we_Trust_07-2012.pdf

HSBC Wednesday cut its outlook on silver prices for this year, but said that it remains "moderately bullish" on the metal and expects prices to rally later in the year amid renewed investor demand. HSBC expects silver to average . . . .