Gold falls for seventh day on funds liquidation

Discussion in 'Commodity Futures' started by S2007S, Oct 17, 2008.

  1. S2007S

    S2007S

    With whats going on in this economy Im very surprised to see gold under $800 again, Gold should be well above $1500 at this point, one ETF I have mentioned is DGP, currently trading at $15.41. I would wait until next week to see where gold trades, if it does sell off going into early next week I would be a buyer of DGP under $14.00 once again, it is a very volatile ETF because it moves 2X what gold moves. Get ready to get back into Gold.




    Gold falls for seventh day on funds liquidation
    Gold surrenders 9% in week, biggest weekly percentage drop in over 20 years




    By Moming Zhou, MarketWatch
    Last update: 9:24 a.m. EDT Oct. 17, 2008
    Comments: 44
    NEW YORK (MarketWatch) -- Gold futures fell Friday for a seventh straight session, with the benchmark contract heading for the biggest weekly loss in more than 20 years, as investors kept dumping futures contracts and opted for cash amid financial turmoil.
    Gold for December delivery slumped $21.50, or 2.7%, to $783 an ounce on the Comex division of the New York Mercantile Exchange. The contract has lost nearly $80 this week, or 9%, the biggest weekly percentage loss since at least 1984, according to FactSet Research.
    "Funds who would like to keep their asset of last resort are being forced to sell, and this is causing weakness in the paper gold market price," said Peter Spina, president of GoldSeek.com.
    "There will be more victims of the fund collapse and more forced liquidations even if it requires to sell your most desired assets such as precious metals," he added.
    On gold exchange-traded funds, gold in the SPDR Gold Trust, the largest gold ETF, fell to 756.86 tons Thursday from Wednesday's 767.58 tons, according to latest data from the fund. That's down 10.72 tons, or 1.4%,
    Analysts had projected gold prices to rise as demand for the precious metal as a safe haven is expected to increase amid the financial turmoil, but gold has repeatedly defied their expectations and has lost more than $120 in seven sessions.
    Some analysts said that in the long term, the global rescue plans to inject liquidity into the market will stir inflation -- something that would be a bullish sign for gold prices as investors tend to buy the metal as a hedge against rising prices.
    In other metals action, December silver dropped 2.8% to $9.37 an ounce.
    Copper for December delivery lost 1.2% to $2.0615 a pound. January platinum slid 2.1% to $872.40 an ounce, and December palladium fell 1.6% to $170.40 an ounce.
    In spot trading, the London gold-fixing price -- used as a benchmark for gold for immediate delivery -- stood at $801 an ounce Friday morning local time, down $1 from Thursday afternoon.
     
  2. Obviously, the DEFLATIONARY forces that have caused 1-month Tbills to go to 0.10% are more significant than any kind of rush into the gold market.

    Rather than continue making all of these "predictions" and posting one cut and paste article after another . . . why not simply REACT to what is going on?

    That is what successful TRADERS do.
    They REACT.
     
  3. Landis,

    You really need to put S2007 on ignore and stop stalking him on every thread he starts.
     
  4. Mecro

    Mecro

    I love it. Starting to buy up silver here and gold once it hits the 600s.

    This is a classic asset grab operation, as so many are clueless.
     
  5. A new generation of gold bagholders.
     
  6. Mecro

    Mecro

    Enjoy fiat paper.
     
  7. Do us a favor and post a screenshot of your position with stops once you initiate it.. of course, that won't happen and we all know why.
     
  8. the expectable end result and outcome from a frenzied buy buy buy from you know who, from which nary a follow-on mention from the same since, as gold was hitting resistance and actually dropping, even as the market was also dropping... but good news for all those that followed the 'recommended' course of action, and sage advise...next time it is mentioned, it will be a sell sell sell, and not uncoincidentally, and significantly lower prices.


    welcome to crammerica...
     
  9. I am buying gold and silver. small positions still though.
     
  10. Enjoy your mark to market losses.
     
    #10     Oct 17, 2008