Just copping a bath from liquidation in Europe.
Not entirely sure where support is for this.
Could it be that gold equities are leading the spot price?
...reports that Cyprus may sell some of its gold reserves, possibly leading other weak European countries like Italy and Spain to do the same.
That was an absolute hammering, massive long liquidation...but its not like there were no warnings.
CanOz
In future can you please post such warnings?I bought yesterday ffs. Luckily didn't buy much, will wait to see just how low we can go before I buy again. Could be some bargains for gold coming up in the near future, I thought it was already cheap.
Talking to the bullion dealers they were saying they are having quite a lot of people going through selling in the past couple of weeks, spooked by recent downward price movements. Fingers crossed gold gets massively oversold from here.
The USD is very close to a key level. Not only does this provide a great trading opportunity, but it will obviously impact the other currencies as well as metals and commodities.
For those interested, you can see that price has been clearly rejected at the 82.25 ish level a few times. Now we appear to be rolling over so if we don't find initiative buyers this time then the DX could be in for a substantial decline. Something to keep an eye on.
12th April 2013, 05:28 PM IP
Gold is getting to the magic level again....everyone knows it too....I'm sure there must be some stops down there!!!
support for spot gold seen at $1,525 area with sell stops likely below**Note: The $1,525/oz level had held as support in Sept 2011, Dec 2011 and spring 2012 - Source TradeTheNews.com
Sell gold is my mantra, but what the hell do I know, I'm not a believer.
June 2006 to November 2006 - Gold fell from $US 722 to $US 562 - Down $US 160 or 22.2 percent
April 2008 to November 2008 - Gold fell from $US 1005 to $US 705 - Down $US 300 or 29.9 percent
August 2011 to April 2013 - Gold has fallen from $US 1892 to $US 1501 - Down $US 391 or 20.7 percent
I'm not a gold investor, but I just can't help putting in my two cents worth (ooops, I mean, my 0.0000125 ounces worth). Of all the illogical markets in an often illogical investment world, gold is the most difficult to fathom, driven overwhelmingly by sentiment with little or no regard to fundamentals.
Where is gold heading? Who the hell knows, but is it really worth $1500, $1600, $2000 or even $200? Hell no. The main thing that props up the gold price is the antiquated and mistaken belief that gold is the only true safe haven investment in times of economic turmoil. This belief is based largely on the old gold standard, long since buried and rightly so, for it resulted in prolonged and frequent depressions, as countries struggled to adjust their economies under the burden of a single currency, much like present-day Europe is discovering under the Euro.
But this doesn't stop central banks from acquiring gold reserves, nor the cries to return to the gold standard, most notably from fringe economic cultists like the Austrian school, and the gold-nut bloggers. These "fiat currency" ranting survivalists, mostly American, are a fascinating blend of paranoid ammo/food hoarders and precious metal speculators spruiking prices that resemble reality as much as their doomsday predictions of Armageddon.
The gold nuts are the main reason I don't buy gold, for any investment that attracts crazies like that is destined for tears. I think the mini-crash of 2012, and gold's subsequent price struggle, have shaken a lot of them out of the tree, but they are not alone. From respected investment advisors to Indian peasants and hairy chested muzzers, the historical allure and greed for gold persists, though its gloss is slowly fading and unless a technology is found to massivey boost its use a rare industrial metal, long term its price will surely fold more than hold.
Sell gold is my mantra, but what the hell do I know, I'm not a believer.
You forgot the tin foil hat?
"fringe economic cultists like the Austrian school" - when Keynesian economic cultists have served us so well?
Faber on the fall in gold prices:
“I love the markets. I love the fact that gold is finally breaking down. That will offer an excellent buying opportunity.
http://www.bloomberg.com/video/faber-gold-isn-t-down-as-much-as-apple-FJWVsQe2RoKY6uT3ysQyxA.html
You forgot the tin foil hat?
I don't trade gold but I do trade a tincy bit in the gold miners. I sold all my gold mining stocks for a loss on Friday.
Though its gloss is slowly fading and unless a technology is found to massivey boost its use a rare industrial metal, long term its price will surely fold more than hold.
Amazes me the b/s coming from so called financial adviser/journos. In the bigger scheme the 400 tonnes of cyprus gold is valued in the millions yet the debt problems are in the billions.Nulla nulla
In another article Mr Maiden describes the exodus from Gold to "safe haven" shares (this helps explain the irrational price climb of some A-REIT's on Friday) with the price dropping $60.00 on friday, with concerns for draft plans for the sale of some of Cyprus gold reserves..
Since the beginning of April, there has been a steady drumbeat of major global commercial banks and
investment houses “downgrading” their future Gold price projections. The one from Goldman Sachs on
April 10 was just another one. But it did contain one detail that were missing from the releases from other
financial institutions. Goldman Sachs publicly announced that they had cancelled their “bullish outlook” on
Gold and advised their clients to seriously contemplate selling Gold short in the futures markets.
A glance at the volume for April 12 shows how seriously their clients took this advice. Over the first four
days of the week (including the big dump on April 10), daily volume on the Comex had averaged just under
152,000 contracts. On April 12, the volume was 392,000 contracts. We don’t know how much the Access
markets added to this price action. One (non mainstream) Gold analyst put the situation like this: “Without
Goldman’s very public call to short gold when it was most vulnerable, there is no way gold would have
broken down today.” Indeed, the mainstream financial media was struggling to find a “reason”. Not being
able to unearth one, they fell back on the Cyprus Gold selling tale of two days earlier.
Again, we see modern “financial management” in action. The recipe is simple. Protect the paper “assets”
on the balance sheets of central and commercial banks from REAL markets no matter what. Meanwhile,
use paper claims to Gold (and Silver) to control both the price and the attitude of the public towards them.
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