GOLD LOSING ITS SHINE—COMMODITY MARKET
With investors moving money out of gold and silver, the
futures tumbled at a breathtaking speed on intraday Friday night session which
witness bloodbath and butchery of gold in the commodity market. With commodity tips providers being
clueless, gold futures for delivery closed at $ 1482.65 registering a loss of $
82.25 or 5.26 per cent in intraday trading session.
Investors were selling gold like anything; earlier when the
bull rally was on, investors were rushing to buy gold. The exact volt a face is taking place with
investors having changed their trading strategy for gold intraday
trade. The bull run has been
prevailing for over a decade. Now at the
first instance of a signal that the rally is fading, people are rushing
out to sell gold in panic of trend reversal on technical chart.
The scale and magnitude of the loss gave a shock to
investors. The best trading software
struggled to find out where to put a hold on reigning down bullions. But, the technical analysis says that
bounce back in gold and silver is equally expected. For the time being sentiment on gold the
bearish no doubt about it and so is commodity market.
Other factors, investors were taking money out of gold and
silver notwithstanding the fact that the dip in US retail sales data released
yesterday that also took equity market down. Safe heaven demand in gold has virtually been
wiped out.
The news that Cyprus would carry out sales of its gold assets
spurred speculation that other countries in Eurozone too would follow suite
thereby increasing the supply of gold in physical markets. The risks to current prices of gold in the commodity
market as skewed to the downside as we move though 2013 and the fall in the
prices could end up being faster and larger than the forecast.
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