Gold Loses $1700 In Early Trading
Looking at that monetary statistics, it is obvious that no matter what the Fed says they have not begun their QEIII program.Â The Adjusted Monetary Base — not the strictest variable for the evidence of QE I will grant — stubbornly continues to oscillate around the $2.6 billion level, which, along with Euro strength right now is seeing some liquidation of Gold prices at these levels.Â Of course, physical buyers continue to scoop up metal at the margins and while this game of tug of war between the Euro and the Dollar continues, the Chinese, Russians, Indians and virtually everyone else are buying physical gold as fast as it can be refined.
At this point for bulls, they are going to have to watch the $1672 low from a few weeks’ back.Â Not only is that an important technical level in the long-term price progression of Gold, it is also a medium-term momentum signal.Â Right now the bears have the momentum — and nearly unlimited funds from the Fed to create it — and a lot of people are simply refusing to stand in the way.Â This is what the Fed wants and this is what it going to get.Â Between this pressure and the need to book profits before year end and the inevitable tax hike in the U.S. there is ample cover to keep the price in check for a few more days.
This opening in December is eerily similar to last year’s which saw a completely counter-intuitive sell-off to $1525 on the 12th.Â Let’s see how much of a sense of humor those that run these markets have.
Currency Articles - Jun 30, 2015 9:38 - 0 Comments
More In Currency Articles
Gold and Oil News - Oct 7, 2014 17:44 - 0 Comments
More In Gold and Oil News
- Gold Falls But Higher Prices May Be On The Horizon
- Gold Prices Spike Higher On Increased Israel Tension
Shares and Markets - May 1, 2014 10:50 - 0 Comments
More In Shares and Markets
- Glaxosmithkline Share Price Rebound Halts On Slower Sales
- Royal Mail Share Price Will Not Be Investigated