Gold Hinges on non-Farm Payroll
After twelve sessions of pain for gold bugs yesterday the bulls attempted to arrest the fall of gold after hitting a low $1,277.40.
After twelve sessions of pain for gold bugs yesterday the bulls attempted to arrest the fall of gold after hitting a low $1,277.40.
Gold (GLD, quote) continues to remain weak with yesterday’s close of 1284.50. In early trading the spot price of gold is basically flat.
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It’s been a roller coaster ride for gold over the last couple of months with the precious metal first rallying almost $200 per ounce, and then promptly reversing from the $1390 per ounce level, and giving back just over half the gain, to trade at the time of writing at $1293.20 per ounce.
Of all the markets and instruments that I comment on and write about, none attracts more strongly differing opinions than gold.
Gold’s recent bullish momentum appears to be holding firm for the time being, and indeed February has been a positive month with only minor pullbacks and reversals denting the move higher.
As I have written many times before it has been a torrid time for gold bugs, who have seen the precious metal collapse from the dizzy heights of almost $2000 per ounce to plumb the lows of $1200 per ounce.
In writing any market analysis, I am always conscious of two things. First, it is very easy to forget that the associated buying and selling in any market embraces the full spectrum, from long term investor, to the short term speculator.
In today’s Morning Coffee Brief we find yesterday’s U.S. equity markets saw its first day controlled by the bulls on bullish global data most notable from Germany’s export data report. The report indicates export levels not seen since the crisis started in 2008.
For gold bugs, 2013 was certainly a year to forget with the precious metal continuing its remorseless journey lower, a journey punctuated with minor rallies which promised much, but delivered little. To say it was a gloomy end to the year would an understatement.