Close X Cookies are necessary for the proper functioning of 24hGold.com. By continuing your navigation on our website, you are accepting the use of cookies.
To learn more about cookies ...
EnglishFrench
Gold & Silver Prices in
In the same category

1 Step Closer To The End Of The Precious Metals Correction

IMG Auteur
Published : February 26th, 2013
292 words - Reading time : 0 - 1 minutes
( 0 vote, 0/5 )
Print article
  Article Comments Comment this article Rating All Articles  
0
Send
0
comment
Our Newsletter...
Category : GoldWire

Gold and silver prices fell for the third straight week as traders speculated that the Federal Reserve will end its current $85 billion per month money printing program sooner than expected. This bolstered the trade-weighted dollar, a move that often times leads to weaker commodity prices, and important technical support levels were breached for both precious metals.


Along with the rest of the natural resource sector, bullion was already under heavy selling pressure before the release of the Fed minutes due to unsubstantiated rumors of a large commodity hedge fund being forced to liquidate its holdings and a fast-approaching “death cross” sell signal for gold.

Note that, despite the mild hysteria associated with this technical indicator, according to Ryan Detrick of Schaeffers Investment Research (as detailed in this WSJ story) the gold “death cross” is not only an unreliable indicator, but, in fact, a contrary indicator, meaning that higher gold prices are now more likely in the months ahead.

On Wednesday, the gold price dropped below $1,600 an ounce for the first time since August after details of the Fed’s last policy meeting showed that some officials favored ending its bond-buying program sooner than planned.

As was the case six weeks ago when the release of the December Fed minutes indicated a similar sentiment (and markets also reacted negatively), this was again a very misleading take on future central bank policy since the views of hawkish, non-voting regional Fed presidents are given equal weight to members of the policy committee within the minutes.

[Some excerpts from the latest issue of the Weekend Update in the subscribers section of the website.]

[To continue reading this article, please visit Seeking Alpha.]

Like this article? Subscribe now for access to Iacono Research premium content.


Companies Mentionned : Bullion | Metals X | Signal |
<< Previous article
Rate :Average :0 (0 vote)
>> Next article
Latest comment posted for this article
Be the first to comment
Add your comment
Top articles
Latest Comments
41 Facts about Central Banks no ...
20 Decprljr
Common sense and logic dictate that if this was taught in schools it would not exist as it has these past 100 yrs. The monetary system is a CON a L...
41 Facts about Central Banks no ...
19 Decsamking73
I'm not sure that much was taught about the central banking system back when I was in school...25 + years ago. At least not the important parts.
Gold & Silver Market Morning
19 Decend
If you trade XAU/RUB and have bought XAU using RUB, you should have closed your position as he advised. Then you should have switched, buying gold ...
Muslim terrorism, the left and t...
19 DecFirebear1
All please understand this person was a Muslim,that was his believe! His character was that of a criminal as was shown by his action on the day and...
Napoleon vs. Cheney: "Interrogat...
18 Decwalmarde
Torture just put the moral line lower. Lets think about American exceptionalism. What we want ? we want to spread and defend that exceptio...
Napoleon vs. Cheney: "Interrogat...
18 Decwalmarde
Utilitarianism is bad philosphy. I'm also very disgust about torture. It will backfire in our face. We are now no better than ou...
Napoleon vs. Cheney: "Interrogat...
18 DecJosu O.5
I cannot overstate how important is that every american read this article. It's absolutely wonderful how you have summarized every aspect around to...
Muslim terrorism, the left and t...
18 Decend0
Does anyone still wonder why is Australia hotbed for second generation Muslim migrant radicalization? Does anyone still need an explanation on why ...
Most commented articlesFavoritesMore...
World PM Newsflow
ALL
GOLD
SILVER
PGM & DIAMONDS
OIL & GAS
OTHER METALS
Comments closed
Subscribe to 24hGold’s daily market briefing
  • Prices and data of precious metals in 119 currencies and world mining companies
  • Daily analysis of the economy, markets and more
  • Free, daily and indispensable
Stay informed, subscribe now !
* Your email will never be shared.