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  1. #1
    Junior Member

    Gold tumbles again, could see worst week in 30 years !!!

    Gold fell to a three-year low on Friday and was in danger of recording its biggest weekly drop in 30 years after the US Federal Reserve said it would wind down its bullion-friendly stimulus later this year.

    Spot gold - down nearly 9 percent this week - dropped for the fifth straight session, while Comex gold futures also declined over 1 percent to their lowest in three years.

    Fed Chairman Ben Bernanke said on Wednesday the central bank would taper its USD 85 billion monthly bond buying programme as the US economy was recovering strongly, ending purchases around mid-2014 if economic growth held up.

    "What the market is undergoing now is a state of normalisation, going back to pre-stimulus times," said Joyce Liu, investment analyst at Phillip Futures in Singapore.

    "Since the first stimulus programme in 2009, markets have jumped despite fundamentals not justifying such a spike."

    Gold was also hurt by CME Group Inc's move to raise initial margins for Comex gold after prices plunged over 6 percent on Thursday.

    The exchange operator raised Comex 100 Gold Futures initial margins for speculators by 25 percent to USD 8,800 per contract from USD 7,040.

    "That is definitely affecting gold too. For those who cannot put out margin calls on time, they will be squeezed out even when they don't want to get out," said Liu.

    Until recently, gold - seen as a hedge against inflation - had gained as the global economy took a hit and central banks acted to boost their economies. Gold touched an all-time high of USD 1,920.30 in 2011.

    Spot gold was down 0.5 percent at USD 1,271.16 an ounce by 0121 GMT on Friday. The metal fell to USD 1,269.04 earlier - its lowest since September 2010 and a level which would mark the worst weekly decline in 30 years.

    It has lost 24 percent of its value this year, after recording 12 years of gains.

    Gold is on weak technical ground and will fall below USD 1,200 an ounce before finding support, technical analysts said.

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  2. #2
    Legendry Member Michael Hodges's Avatar
    I really see gold hitting the $1200 mark, and fairly soonish. Bears fall out the window and bulls climb the stairs. . .

  3. #3
    Legendry Member milos's Avatar
    The gold price rebounded from the lowest level since 2010 that such a large drop in prices prompted investor to reinvest in this precious metal at lower price.And before that this will probably be the worst week for gold in September 2011 as the Federal Reserve signaled first reduction and then elimination monetary incentives.During the Asian trading session price has increased 0.84%. After five consecutive days in downtrend and price fell 8.5% from the price at the end of the week entered into a small correction and price closer $1300 per ounce.During European trading session price increased 0.7%.

  4. #4
    Veteran Member hchandra's Avatar
    Quote Originally Posted by Michael Hodges View Post
    I really see gold hitting the $1200 mark, and fairly soonish. Bears fall out the window and bulls climb the stairs. . .
    Agreed, nod, nod.
    Click image for larger version. 

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    With the demand breach, nothing stand in the way to 1180 - 1200,
    and lot of fundamental going around with reduced demand around the world (India cut 20% gold import), the numbers looks possible.

  5. #5
    Veteran Member Ammeo's Avatar
    Quote Originally Posted by hchandra View Post
    Agreed, nod, nod.
    Click image for larger version. 

Name:	goldweekly 22 june 2013.jpg 
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ID:	584
    With the demand breach, nothing stand in the way to 1180 - 1200,
    and lot of fundamental going around with reduced demand around the world (India cut 20% gold import), the numbers looks possible.
    i wont be buying Gold in 2013 atleast, all the charm in the metal seems to be over..

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