I'm new to gold trading and was wondering why it would sell off in the absence of any news. I understand that gold is supposed to be heavily manipulated. In my view its likely that the sellers wanted the gold price to drop or they would have put the volume onto the market more slowly instead of dumping it. I also consider it likely that it will get hit again and then be bought. Any thoughts or am I jut paranoid. Cheers
Gold and anything against the dollar move together. Ben and Co. have clearly signaled there will be no more cuts and rate hikes are coming. The Fed typically follows the bond market and rates are rising. Just look at the recent increases in mortgage rates. So a stronger dollar means weaker gold and euro. A stronger dollar also means cheaper commodity prices as they have risen in part due to the weakening dollar until recently. Post edit: Not to mention nobody wants to step up big in front the fed meeting. I haven't looked at fed futures forecast but I can venture to say no cut or 1/4 rate hike, prob. no cut for a few months.
gold couldn't get thru 910 which is a downtrend line for the correction from 1030 this is about the 3rd try and stops at 900 were hit on the way down, and bids were pulled. maybe next time
The short answer is that the bulls got tired... They tried to pass the 910 level three times recently and once back on June 9th. Where I'd have to disagree is that I don't think the current 910 level is a down trendline from the 1030 peak but simply horizontal resistance. If you are new and interested in gold trading pop over to this thread whre there's a few of us intraday/swing trading gold at the moment http://elitetrader.com/vb/showthread.php?threadid=127353
The above stuff is all true. Also, gold is a fairly thin market. Once it makes a break it can haul ass as stops get hit. That's why I like to trade it. Its the only market where I will chase price as it often makes a break and never looks back.
Thanks guys, Good to hear there are no conspiracy theories. I was sure about the liquidity in the gold market, in FX [a very liquid market] the liquidity dries up [or at least diminshes] around major announcements, and the movements can be similar, but to see this move on no announcement was startling. But I sure would have liked to have been on the right side of the move. Paul have read the thread, I follow price action and was looking for gold to range between 907 and 887 for a few days, but after last night [NZTime] Im not so sure, I've just gone short with a tight stop, as the price hasn't rebounded much, the bulls may be a little tentaive before loading up again. Cheers
most markets are thin ahead of Benito Bernanke gold has air pockets just as silver does..sometimes silver more so go to the beach and return in October