{"id":37311,"date":"2013-04-05T08:11:48","date_gmt":"2013-04-05T12:11:48","guid":{"rendered":"http:\/\/countingpips.com\/forex-news\/?p=37311"},"modified":"2013-04-05T08:11:48","modified_gmt":"2013-04-05T12:11:48","slug":"golds-fall-exaggerated-another-big-move-down-will-need-to-break-through-big-support-level","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex-news\/2013\/04\/05\/golds-fall-exaggerated-another-big-move-down-will-need-to-break-through-big-support-level\/","title":{"rendered":"Gold’s Fall “Exaggerated”, Another Big Move Down “Will Need to Break Through Big Support Level”"},"content":{"rendered":"

London Gold Market Report<\/strong>
\nfrom Ben Traynor<\/strong>
\nBullionVault<\/strong><\/a>
\nFriday 5 April 2013, 07:30 EST<\/strong><\/p>\n

U.S. DOLLAR gold prices climbed back towards $1556 per ounce Friday morning in London,
\nthe level that was until yesterday’s falls the 2013 low, as stocks and commodities fell ahead of the
\nrelease of monthly US jobs data.<\/p>\n

Gold in Sterling climbed back above \u00a31020 an ounce, up from a three-month low hit yesterday,
\nwhile gold in Euros climbed back above \u20ac1200 an ounce, after touching its lowest level since
\nFebruary.<\/p>\n

Silver briefly edged back above $28 an ounce, having fallen to eight-month lows yesterday, while
\nlonger-dated US Treasuries gained.<\/p>\n

The latest US Employment Situation report, which includes the nonfarm payrolls figures for the
\nnumber of jobs added last month as well as the latest unemployment rate, is due to be released at
\n08.30 Washington, D.C. time.<\/p>\n

A day earlier, gold sank to a 10-month low in Dollar terms Thursday, briefly touching $1540 an
\nounce.<\/p>\n

“The fact that gold failed to hold the intraday lows in the $1540 area is a bit of a concern for the
\nbearish trend in the short-term,” say technical analysts at Scotia Mocatta.<\/p>\n

“There is a big support level between $1522 and $1532 which will have to be cleared before we see
\nanother large move down in gold.”<\/p>\n

The gold price will average $1730 an ounce this year, trading in a range between $1530 and $1850,
\naccording to forecasts published Thursday by metals consultancy Thomson Reuters GFMS.<\/p>\n

GFMS added however that an improving economic backdrop “could easily entail the start of a
\nsecular bear market” in 2014. At the launch of its Gold Survey 2013 report, GFMS also noted that
\ngold exchange traded funds saw outflows of 177 tonnes in the first three months of 2012, equivalent
\nto 63% of the amount they added over the whole of 2012.<\/p>\n

As of Thursday, the volume of gold backing shares in the world’s biggest gold ETF, SPDR Gold
\nTrust (ticker: GLD), was down more than 10% since the start of the year.<\/p>\n

Hedge fund Paulson & Co., which latest available data show held around 5% of the GLD, saw
\nits Gold Fund fall by 27.9% in the first quarter, the Wall Street Journal reports, with the firm
\nciting “implied volatility in the gold derivatives market”. The Dollar gold price was down around
\n4% over the same period.<\/p>\n

“The main driver behind gold’s weakness this year has been the focus on global growth and that’s
\nmeant rotation out of defensive assets like gold,” says UBS analyst Joni Teves.<\/p>\n

“There’s this weak sentiment and it’s been feeding on itself. Central banks continue to pursue
\nexceptionally loose monetary policies and create a still supportive environment for gold.”<\/p>\n

“Investors are reshuffling commodity investments into equities,” adds Commerzbank analyst Daniel
\nBriesemann.<\/p>\n

“We find it somewhat hard to understand the current underperformance of commodities given that
\nthe market environment is characterized by at least some economic recovery. We think that the drop
\nis exaggerated.”<\/p>\n

Police in Italy on Sunday seized gold bars worth an estimated \u20ac4.5 million after stopping a car
\ntrying to cross the border into Switzerland, according to press reports.<\/p>\n

Friday marks the 80th anniversary of Executive Order 6102, the confiscation of privately-held
\ngold by President Roosevelt in 1933.<\/p>\n

Ben Traynor<\/strong><\/span><\/a>
\nBullionVault<\/strong><\/span><\/a><\/p>\n

Gold value calculator | Buy gold online at live prices<\/strong><\/span><\/a><\/p>\n

Editor of Gold News, the analysis and investment research site from world-leading gold ownership
\nservice BullionVault, Ben Traynor was formerly editor of the Fleet Street Letter, the UK’s longest-
\nrunning investment letter. A Cambridge economics graduate, he is a professional writer and editor
\nwith a specialist interest in monetary economics. Ben can be found on Google+<\/p>\n

(c) BullionVault 2013<\/p>\n

Please Note: This article is to inform your thinking, not lead it. Only you can decide the best
\nplace for your money, and any decision you make will put your money at risk. Information or
\ndata included here may have already been overtaken by events \u2013 and must be verified elsewhere \u2013
\nshould you choose to act on it.<\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

London Gold Market Report from Ben Traynor BullionVault Friday 5 April 2013, 07:30 EST U.S. DOLLAR gold prices climbed back towards $1556 per ounce Friday morning in London, the level that was until yesterday’s falls the 2013 low, as stocks and commodities fell ahead of the release of monthly US jobs data. Gold in Sterling … <\/p>\n

Continue reading “Gold’s Fall “Exaggerated”, Another Big Move Down “Will Need to Break Through Big Support Level””<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-37311","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts\/37311","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/comments?post=37311"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts\/37311\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/media?parent=37311"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/categories?post=37311"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/tags?post=37311"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}