Gold Prices Bound To Fall Further

goingbroke

Look for gold at $1662 an ounce to continue its retreat tomorrow in the wake of last week’s rout and the coup de grace of another rise in margin on gold futures speculation at the commodity exchanges.

As gold began the year at $1400 an ounce and rose spectacularly to almost $1900 an ounce– a run-up of $500 or about 35%– there are evidently plenty of margin buyers who got in the game between $1400 and $1662 who are feeling edgy about getting margin calls just at the very moment Europe is in a swoon, and the stock markets everywhere are under great pressure. The next impact point is $1522- the 200 day moving average on gold prices. We’re in retreat for the time being.

the offsetting trade will be to buy dollars

moonshine

silver pushing 5% down - heading towards 28's .... Gold 1633 point something ... pushing towards 1500's .... wow -- never thought it would happen so quickly.... No worries, better than monopoly.

MsMorrisine

heading towards 27s now

Overdate

It will be interesting to see how the Mint re-prices its gold offerings this week.

At the current price of gold - $1592 at this moment - the Mint's price should drop by 5 increments, or around $250 per ounce.

MoneyLA

Still looking for gold to touch $1300 and silver to hit $20 and possibly break that.

$1300 would retrace the breakout for gold, $20 for silver.

Over the long term, these would be considered normal and healthy. But since most traders and investors are "short term" they are shocked at the prospects of these retracements.