Possibility of a Gold price correction is rising

The gold price traded lower on Tuesday, sinking $14.50 to $1,883 per ounce, after the Shanghai Gold Exchange hiked margins to 12%. Gold price turned lower following the news out of China after hitting a new all-time high of $1,913 overnight.

Commenting on the gold price rally, analysts at Wells Fargo wrote in a note to clients that “Investors’ concerns about the validity and efficacy of the U.S. debt deal, uncertainty about further deficit reduction suggestions … continued dollar weakness and the worsening of the European debt crisis all appear to have helped push gold even higher. While gold appears to be getting a bit frothy, its ascent is justified by the fundamentals.”

While Wells Fargo may be correct about the fundamentals supporting the gold price, the yellow metal could be due for a correction in the short-to-intermediate term. Market Vane’s Bullish Consensus reading on the gold price, a closely-followed sentiment indicator, came in at 93% on Monday. Such a high level has historically been associated with intermediate-term peaks in the price of gold and has frequently served as a warning sign, from a contrarian perspective. Given the speed of the recent rally, the possibility of a Gold price correction is rising as investors look to bank profits.


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Malaysia Gold Investment

I found Gold Investment in Malaysia is a vary good tools to make profit when the market is down. I also found that Gold Price go up and down more slower compare to share market so to make money in long term, Gold is the right tools. This blog is all about Malaysia Gold Info and the way to make profi

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