If gold prices continue to slide do not be beguiled into thinking that you own a barbarous relic. Things are bound to change soon. The Chinese have figured this out and are buying as much gold as possible.
Author: David Levenstein
Posted: Tuesday , 26 Nov 2013
Gold prices fell the most in more than two months last week mainly due to renewed speculation over the timing of the US Federal Reserve’s (FED) tapering of its monetary stimulus programme. After breaking below certain key support levels, the price of spot gold ended the week with a 3.5% drop to end the week at $1243.70 per ounce. After dropping below $1300 an ounce, the selling accelerated on Thursday taking gold through the support level at $1,250, which many analysts saw as important for the market to hold. While prices initially managed to hold above $1240 an ounce, traders are eying this level as a break below could signal more technical selling with some analysts even suggesting a dip to the $1,220s as possible as bearish technical charts and little positive news is available to offset the price-negative sentiment in gold. This did occur but there was a rapid rebound back to $1250 although, at the time of writing, gold has been struggling to maintain this level.
Interestingly, gold trading on Comex was interrupted twice last Wednesday, ...