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

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
Tim Iacono is the founder of Iacono Research, a subscription service providing market commentary and investment advisory services specializing in commodity based investing.
WebsiteSubscribe to his services
Latest comment posted for this article
Be the first to comment
Add your comment
Top articles
World PM Newsflow
ALL
GOLD
SILVER
PGM & DIAMONDS
OIL & GAS
OTHER METALS
Mining Company News
Coronado Res.(Au-Cu)CRD.V
Initiates Strategic Review of Assets
CA$ 0.30+0.00%Trend Power :
Corporate news
Global Minerals(Cu-Sb-Au)CTG.V
IIROC Trading Halt - CTG
CA$ 0.00-83.33%Trend Power :
Corporate news
Erdene(Au-Cu-Mo)ERD.TO
Erdene Announces Private Placement
CA$ 0.12+0.00%Trend Power :
Corporate news
Foran Mining(Ag-Au-Cu)FOM.V
Foran Announces Best Hole Drilled to Date in the Bigstone Copper Zone: 2.0% Cu over 105m, including 4.1% Cu over 20m
CA$ 0.36-24.47%Trend Power :
Corporate news
Beacon Minerals(Ag-Au-Cu)BCN.AX
Completion of Fourth Milling Campaign
AU$ 0.00+0.00%Trend Power :
Corporate news
Impact Minerals(Au-Ni-Ur)IPT.AX
High Grades of Rare but Potentially Economic PGM Elements Assayed at Broken Hill
AU$ 0.02+30.77%Trend Power :
Corporate news
Golden Arrow Res.(Cu-Au-Ag)GRG.V
Golden Arrow Comments on Recent Trading Activity
CA$ 0.35+2.94%Trend Power :
Corporate news
Icon EnergyICN.AX
Icon Energy Ltd Appendix 3E Daily Buy-back Notice
AU$ 0.06+0.00%Trend Power :
Corporate news
Panoramic Res.(Co-Cu-Ni)PAN.AX
More good hits at Savannah, mineralisation extended
AU$ 0.43-2.27%Trend Power :
Exploration and drilling
Titanium Corp(Oil-Ti)TIC.V
Titanium Corporation Reports Fiscal 2015 Second Quarter Results and Update on Progress
CA$ 0.85-5.56%Trend Power :
Corporate news
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.