NEW YORK (TheStreet) -- World Cup action is set to subdue trading in the silver market.
Silver has risen 2.6% year to date and 1.2% since May, but UBS analysts suggested the coming month of World Cup matches, which started June 12 and ends July 13, combined with a summer seasonal slowdown will reduce the number of participants in the market, generating a sideways move for the precious metal.
"In reality, the link may not be as far-fetched as one might initially think: The focus on the football matches and the overall excitement surrounding these games could act as an added incentive for market participants (and football enthusiasts, more generally) to go for holidays around this time," UBS analysts Joni Teves and Edel Tully wrote Monday in a note to clients.
Teves and Tully said the reduction in traders could be more concentrated as people choose to take their vacations during the month of World Cup games instead of spreading them throughout the summer months during non-World Cup years.
Gold for August delivery at the COMEX division of the New York Mercantile Exchange was adding $1.10 to $1,275.20 an ounce. The gold price traded as high as $1,285.10 and as low as $1,272.50 an ounce.