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Gold takes a quick tumble, dropping nearly 1% in minutes to $1.650/oz. (taking silver along for...
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Monday, April 30, 2012, 8:57 AM ETGold takes a quick tumble, dropping nearly 1% in minutes to $1.650/oz. (taking silver along for the ride, or vice versa). The fall comes as HSBC hits the tape, cutting its 2012 average gold forecast to $1,760 from $1,850 on a "sharp decline" in Indian demand and reduced expectations for QE.
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This news story has 15 comments:
"Dark markets" are another reason the deck is stacked against the average investor.
The CFTC is run by former players who will return to the field once their terms are up. Why would anyone expect fair regulation of this market...?
The drop in India is because of them raising the tax from 2% to 4%. There is a protest or "strike." This means a backlog of demand for gold that will be hit the market soon to satisfy either black market demand or demand cause by the tax policy being rescinded.
Of course, confidence in the dollar may rise (but only temporarily) pending the outcome of the US elections and how people perceive that a President Romney can somehow change our course (he can't). This could drive gold down to $1,200 per ounce in the next 6 to 12 months.
To quote Al Gore: "This roller coaster is headed for a crash and we are in the front car." Of course Gore was talking about our environment but I am extending it to our economy. That was the smartest thing Al said since he invented the internet.
Gold price will be determined more by geopolitical factors than moving averages and "chartology" as they will drive the demand over the next few months. Some people may disagree with this statement even though I feel like I am overstating the obvious.
I am holding on to physical gold since 50 years.