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  1. #1
    Junior Member

    Gold slides 4%, near 3-year low as Wall Street rallies !!!

    Bullion tumbled again even after the US government slashed its estimate for first-quarter economic growth, which made investors less worried that the Federal Reserve would move soon to end its US economic stimulus.

    Gold tumbled 4 percent on Wednesday, taking it near a three-year low as a rallying US equity markets further cut into demand for bullion as a hedge against economic uncertainty.

    Silver dropped 5 percent and platinum group metals also declined sharply.

    Bullion tumbled again even after the US government slashed its estimate for first-quarter economic growth, which made investors less worried that the Federal Reserve would move soon to end its US economic stimulus.

    Bullion has slid around USD 125 an ounce in four sessions since the Fed signalled it plans to wind down the era of easy money. With two trading days left in the second quarter, gold was down 23 percent for the period, on course for its biggest quarterly decline since Reuters began tracking gold prices in 1968.

    "We bought gold for two reasons: because we were worried about the inflationary impact of policy and because we thought the financial system was going to fall apart," said Sean Corrigan, chief investment strategist at Diapason Commodities Management.

    "Although it may be completely the wrong judgement, the market has decided that none of those at the moment is a concern," Corrigan said.

    Spot gold slumped to its lowest since August 2010 at USD 1,223.54 an ounce. It was last down 4 percent at USD 1,225.91 an ounce by 3:08 p.m. EDT (1908 GMT).

    US gold futures for August delivery settled down USD 45.30 to USD 9.80. Trading volume exceeded 315,000 lots, sharply above its 30-day average of 211,000, preliminary Reuters data showed.

    Gold, which has lost more than a quarter of its value this year, accelerated losses during Wednesday's session as the S&P 500 rose. The benchmark US stock index was up more than 1 percent in late trade.

    Read full article : http://goarticles.com/article/Gold-S...llies/7709282/

  2. #2
    Moderator Kolyo's Avatar
    Gold is weakening with nice momentum. Only Put options are appropriate in this market. I am waiting for some signs of recovery and trend reversal but there aren’t such signs yet.

  3. #3
    Legendry Member milos's Avatar
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    Gold price rose for the first time in for days after falling to the lowest level since August 2010.The price of gold since the beginning of April lost 22% and achieved a record quarterly decline due to the possibility that the Fed reduced the monetary easing program.Gold acts as safe currency in the market as an inflation hedge to reduce the possibility of monetary stimulation by the major central banks negatively affects the price.Investors continue to evaluate the possibility of reducing yhe monetary incentives program by the Federal Reserve.ECB President Mario Draghi said yesterday that the exodus of more lenient monetary policy in pretty much positive impact on the price of gold.The risk of the break below $1221 per ounce it remains high.The trend is bearish.
    Key levels
    1290 resistance
    1271 resistance
    1250 pivot points
    1228 last
    1221 support
    1202 support
    1195 support

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