gold price held firm near $1,620 per ounce Friday morning despite encouraging economic news in the U.S. and Europe

The gold price held firm near $1,620 per ounce Friday morning despite encouraging economic news in the U.S. and Europe. While the price of gold stabilized, silver rallied $0.31, or 1.0%, to $30.27 per ounce. U.S. equity markets looked to open substantially higher, with S&P 500 futures up 15.00 points, or 1.3%, at 1,164.00.

Weekly jobless claims in the U.S. fell 37,000 to a seasonally-adjusted 391,000, the lowest level since April 2 and below the consensus estimate among economists. GDP was revised up from 1.0% to 1.3%, above the 1.2% expected by economists. In Germany, the lower house of parliament voted to expand the size of the European Financial Stability Fund (EFSF), and the upper house is expected to pass the measure on Friday.

Commenting on Thursday’s gold price sell-off, Standard Bank Plc analyst Marc Ground wrote in a note to clients that “Momentum is lacking as investors adopt a seemingly cautious attitude to entering the gold market after last week’s abrupt price fall.”

Part of yesterday’s move lower in the gold price was fueled by a rare bit of encouraging news in the euro zone. The European Parliament voted yesterday to more automatically enforce sanctions against euro zone nations that do not adhere to deficit and debt limits. The stricter regulations will accompany the European policymakers’ more pressing goal of preventing concerns of a Greek default from further damaging the financial condition of Italy, Portugal, and Spain.

Indian buy physical Gold as Diwali begins

India is one of the major Gold consumer in the world , especially during the Diwali celebrations where gold is offered as gift . As the major religious festival season of Diwali begins in India, the buying of gold and silver as gifts is a common practice.It is potentially a boom time for businesses across the board, with presents such as necklaces and bracelets traditionally bought and given to friends and family.But the recent dramatic increases in price of both metals is making it difficult for many Indians to be as generous as they might want to be. After hitting a high of $1,900 an ounce in early September, the price of gold has fallen to just above $1,500.European policymakers are struggling to resolve the region's debt crisis, and such fears would normally drive the price of gold higher.But with the commodity already at such lofty heights, many investors now feel the only really safe bet is cash itself, and hence the selling.

Gold price dip below $1,600 per ounce on Thursday morning sell-off was fueled by strength in the U.S. Dollar Index

The gold price dip below $1,600 per ounce on Thursday morning sell-off was fueled by strength in the U.S. Dollar Index (DXY), which advanced 0.5% to 78.42.

Yesterday’s gold price rally coincided with widespread gains in many dollar-denominated asset classes, fueled by a 0.4% rise in the euro currency to 1.3585 against the greenback. Strength in the euro came amid rising hopes that euro zone officials were considering a more robust financial plan to stem the tide of the sovereign debt crisis. One measure being discussed would be to leverage the €440 billion European Financial Stability Fund (EFSF) to allow for additional funds to be borrowed – likely from the European Central Bank (ECB) – without increasing the actual size of the EFSF.

While the idea of leveraging the EFSF helped propel the markets higher on Tuesday, such a plan carries with it considerable risks. Most importantly, it would put German and French taxpayers on the hook for further losses should the financial condition of Greece continue to deteriorate. Additionally, it would create the potential for further moral hazard risks by other members of the PIIGS, who may not feel as much pressure to get their own financial houses in order.

Regardless of the market’s short-term reaction to the ongoing European developments, Greek sovereign debt continues to signal that a default is looming. As John Hussman, Ph.D. – founder of the Hussman Funds – noted in his weekly market comment, “The yield on 1-year Greek government bonds closed above 135%. As I’ve noted in recent weeks, the bond markets continue to reflect expectations of certain default on Greek debt. All they are working out now is the recovery rate.”

The impact of a Greek default on the gold price would be quite uncertain in the short-term – chiefly due to the potential for broad-based liquidation in financial markets. If the financial position of the euro zone were to improve following Greece’s exit, the price of gold could come under additional pressure. However, a Greek default could instead lead to further destabilizations in the European banking system, which would be bullish for the gold price in the months ahead as policy makers implemented pro-inflation policies to offset the deflationary headwinds.

China Unveils First Gold ATM

Physical gold demand in China is booming to the point that the government have decided to install gold ATM machine to sell gold coins and bars to the public , China is the second largest consumer of Gold , and the Chinese are known for being gold bugs who prefer to keeping their savings in the form of physical gold bullion...

Gold price moved sharply higher

Gold price moved sharply higher Wednesday morning, gaining $31.00 to $1,658 per ounce. After sliding 6.5% over the past two trading sessions, the price of gold moved higher on bargain hunting among investors and traders. Silver spiked higher by a huge $1.82, or 5.9%, to $32.56 per ounce. On a closing basis, gold’s sister precious metal declined 24.4% over the last six trading days. Optimism that European leaders are beginning get serious about stemming the waning confidence in the continent’s banking system helped buoy global stock and commodity markets.

Marc Faber, publisher of The Gloom Boom & Doom Report, provided his latest thoughts on the gold price in an interview with CNBC on Monday. Faber, who has been correctly bullish on gold for most of the past decade, noted that the price of gold has become “very oversold” in the near-term. “We overshot on the upside when we went over $1,900,” he asserted, and “We’re now close to bottoming at $1,500.”

Faber subsequently cautioned that if the $1,500 level does not hold, the gold price could fall to between $1,100 and $1,200 per ounce before finding a bottom. However, despite the potential for a more severe gold price correction, Faber contended that “I don’t think the long-term trend is broken.” Although he did not provide a specific gold price target at this time, Faber predicted earlier this year that the price of gold is likely to eventually surpass its inflation-adjusted all-time high of approximately $2,300 per ounce.

David Rosenberg of Gluskin Sheff – another long-time gold bull – also reiterated his positive long-term outlook on the gold price yesterday. In a note to clients, Rosenberg wrote that “The fundamentals for gold, in terms of being a hedge against the growing lack of integrity in the global monetary system have not changed one iota despite the severe falloff in recent weeks.”

Physical demand out of China boosting the Gold Market

When you are buying Physical Gold you do not care what the margin is says futures trader Lou Grasso, Millennium , a lot of the demand these days is physical demand out of China he added I spoke on your show in the middle of last week and i was an advocate in raising the margins. do i think that's really going to stop people from coming in? no. because a lot of the demand for gold these days is etf demand and physical demand. physical demand out of china and Asia is really driving the market these days. obviously if you're buying physical you don't care what the margin is."Lou Grasso told CNBC

Gold is a victim of its own success as liquidity trumps

Gold price continued to fall Tuesday, plunging $34.25 to $1,625 per ounce. Another hike in margins by the CME Group helped greased the skids of the current correction in the gold price. Today’s decline comes on the back of the price of gold posting its worst week since 1983 as broad-based liquidation engulfed the precious metals space. The spot price of gold tumbled $96.48 to $1,644.27 on Friday, bringing its weekly loss to 9.2%. COMEX gold futures slid $101.90, or 5.9%, to $1,639.80 per ounce on Friday, marking the third largest single-day nominal decline ever. With today’s drop, the gold price is now 15.6% below its $1,922.20 all-time high, reached less than three weeks ago on September 6.

In light of yesterday sell-off in gold, coupled with last week’s substantial decline, UBS analyst Edel Tully explained her reasoning for the yellow metal’s weakness in a note to clients.

“Gold is one of the few assets that remains in positive territory this year, in a sense it is one of the last assets standing, and because of this as investors head for cash they sell the assets that have performed,” Tully wrote.

“Essentially gold is a victim of its own success as liquidity trumps.”

Nic Brown, a commodities strategist at Natixis, provided his thoughts as well this morning on the move lower in the gold price. ”The rise in volatility taking place in the gold price was clearly an indication that gold was no longer a low-risk asset,” he wrote. “So there are a few signs there that would have given you pause for thought, but inevitably when the move happens, everyone is taken a little bit by surprise.”

Brown went on to say that “I would suggest that part of what is happening is a collective move away from commodities by investors. The fact that there is carnage going on across the commodities spectrum indicates there are a fair few investors who are getting cold feet at this stage and that has hit some precious metals disproportionately.”

Why are gold and silver prices falling?

Silver and Gold price slashed in trading following stock fall The powers that be seem to be conspiring to drive down the price of gold and silver. It starts with margin raises, and continues with major banks selling short to flush out the weaker players. Vomit blood and guts are all thats left of this train wreck. the plunge in gold and silver prices has taken place because of massive unwinding of positions across all asset classes. It is unlikely that precious metals will witness another up move in the near future.

Everybody is hypnotized and is dreaming the same dream and that is " Paper is Money" , a dream that was imposed on people with the Media and the education system , this does not make it money , , only Gold and Silver are Money , paper is a Currency that was created the first time to represent a deposit of Gold , if I was a central bank I won't accept any payment in paper , someday the people will wake up from the dream and realize that paper is just that paper and that GOD created Gold and Silver for the purpose to be money and a mean of exchange , the fact that 9 billion people are all dreaming the same dream at the same time does not make it real ....and that's my take about this , I tell you what I do , I go to my coin shop and I load in gold and silver as much as I can afford and I thank uncle Ben Bernanke for the unusual discount ...that's all folks

Malaysia Retail Gold Price Drop To RM208

916 gold drop to RM197/gm after keep in all time high price at RM205 for almost a month.

David Morgan Gold & Silver Panic Report

Silver Guru David Morgan joins Kerry Lutz to discuss the recent crash in gold and silver market silver went down almost 25 percent in two days Gold also lost almost $150 in a week and is down $250 from its all time high of a couple of weeks ago , we are in an extremely over sold market says David Morgan , but these are sell off mostly due to the fact that these are highly leveraged markets , the moves in these markets are based on the paper market they are based on the futures and options markets and ETFs they are not really reflective on the fundamentals of the physical gold and silver markets

An Incredible Buying Opportunity in Gold Market

Kirsty Hogg's Precious Metals Emergency Update 9-23-11 : there is only one buzz word and that is Buy Buy and Buy , the long term projection is very bullish many analysts believe that gold prices will start to rebound starting next week , this is an incredible buying opportunity or an entry point for people who want to enter the gold market , we have already hit the bottom at this point according to Bob Chapman so buy gold and silver with both hands and as much as you can , in few weeks from now you will be glad you did ....

Online Gold Trading - Gold Rush Trading System

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Gold prices have now fallen in excess of $100 over the past 48 hours

The gold price plunged again Friday closing, sinking $56.70 to $1,684 per ounce. Gold prices have now fallen in excess of $100 over the past 48 hours. Heavy liquidation in COMEX gold futures has led to the fierce decline in the price of gold. Broad-based selling on Wall Street amid disappointing Chinese economic data, fears over a double-dip recession, and continued worries over the European sovereign debt crisis have weighed heavily on financial markets.

The price of gold came under significant pressure yesterday as the U.S. dollar rallied to a seven-month high against a basket of foreign currencies. The spot gold price fell to its lowest level since mid-August. The SPDR Gold Trust (GLD), the world’s most liquid gold price proxy, tumbled to $164.60 Friday morning – leaving the world’s second largest ETF lower by 6.4% this week.

Legendary investor Jim Rogers echoed this positive sentiment on the dollar in a CNBC interview on Thursday. “I own the dollar. As we talked last time, I think the dollar is going to go higher…It’s going up against everything right now. There are various reasons for that, one of which is everybody is panicked and for some reason they are rushing into the U.S. dollar. The U.S. dollar is not a safe haven if you ask me but I do own it.”

Rogers – known for running the Quantum Fund with George Soros and for his positive stance on commodities over the past decade – reiterated that his bullish bet on the greenback is only for the short-term. Over the longer-term he sees it going considerably lower as the U.S. government remains committed to debasing its currency to stimulate economic growth. Rogers has also been a long-time gold bull and recently predicted that the gold price will soon surpass its $2,300 inflation-adjusted all-time high.

Although Rogers did not specifically discuss the price of gold in yesterday’s interview, his outlook for the global financial system and economy augurs well for higher gold prices over the longer-term. “The major problems are coming from the West, from Europe and the U.S. We’re much worse off than we were in 2008 because the debt has gone through the roof since 2008. At least in 2008 there was a possibility that governments could bail us out. Right now of course the governments have gotten deep into debt themselves.”

Huge Gold sell off in Gold Market , buy buy buy

David Morgan : the Gold and Silver communities on the physical side are not afraid of this they are stepping up in the plate and are buying more physical metals , they are buyers buyers and more buyers says David Morgan , although it may take up to three month according to him for gold to repair this loss and go back to the 1900 level

Gold price and other dollar-denominated asset classes posted steep losses

The gold price tumbled $45.91, or 2.6%, to $1,736.44 Friday morning amid significant weakness in financial markets across the globe. Silver plunged alongside the price of gold, by $2.61, or 6.6%, to $37.01 per ounce. U.S. markets were set to open with large losses, as S&P 500 futures dropped 30.00 points to 1,125.75. In addition to disappointment stemming from yesterday’s Fed meeting, a weaker than expected report on the Chinese economy helped fuel the selling. HSBC’s preliminary China Manufacturing Purchasing Managers’ Index, or “flash” PMI, slid to a two-month low of 49.2 in September, below the 50 level separating expansion from contraction.

The gold price and other dollar-denominated asset classes posted steep losses after the Ben Bernanke-led Fed chose to extend the average maturity of its holdings of U.S. Treasuries, also known as Operation Twist. Under the terms of the plan, by June 2012 the Fed will purchase $400 billion in Treasuries with remaining maturities of 6-30 years and will sell an equal amount of Treasuries with remaining maturities of no more than 3 years. The primary goal of Operation Twist is to further reduce longer-term interest rates in the hopes of more effectively stimulating the economy – particularly the housing market.

Other noteworthy items from the Fed announcement included the addition of the word “significant” to “downside risks to the economic outlook.” In addition, the Fed chose not to lower interest on excess bank reserves – another easing measure that many economists expected Bernanke to consider. The central bank also chose to begin reinvesting principal payments from its holdings of agency debt and agency mortgage-backed securities in agency mortgage-backed securities in order to “help support conditions in mortgage markets.” In the same fashion as the August FOMC, the Fed’s easing measures were met with three dissenting votes – from Presidents Fisher, Plosser, and Kocherlakota –” who did not support additional policy accommodation at this time.”

US Dollar Stronger Will Push Malaysia Gold Price Higher

Due to US Dollar is getting stronger again Malaysia Ringgit, Gold price in USD is drop lower but in RM gold price is move higher so when Malaysia start print RM20 paper money, gold price in RM will fly to new high.

Gold turned lower and the U.S. dollar rallied after the Federal Reserve announced plans

Gold turned lower and the U.S. dollar rallied after the Federal Reserve announced plans to extend the average maturity of its holdings of U.S. Treasuries, also known as Operation Twist. The U.S. Dollar Index, a trade-weighted measure of the greenback versus several of the world’s other leading currencies, climbed from negative territory on the day near 76.80 to as high as 77.33. The euro gave up its modest gains against the dollar as it slid 0.2% to 1.3673 this afternoon.

The Federal Reserve announced in its Federal Open Market Committee (FOMC) statement that it will extend the average maturity of its holdings of U.S. Treasuries to provide additional monetary policy accommodation. In doing so, the Fed is essentially repeating “Operation Twist,” the 1960s policy in which the U.S. central bank purchased longer-term Treasuries and sold an equal amount of shorter-term Treasuries in the hopes of driving long-term interest rates lower.

Goldman Sachs chief U.S. economist Jan Hatzius discussed his expectations for the Fed meeting in a note to clients on Tuesday. ”Although not a done deal, we see a high probability that the FOMC will announce further easing steps at the conclusion of this week’s meeting,” Hatzius wrote. He went on to say that some form of Operation Twist “looks very likely,” although the exact structure of it is uncertain.

“We see low odds of a change in the Fed’s communication of its policy objectives…There also appears to be little appetite on the committee for an outright expansion of the Fed’s balance sheet,” Hatzius added. Such an expansion would likely come in the form of a third round of quantitative easing (QE3), which “does not look like a realistic option for the upcoming FOMC meeting.” Hatzius later noted that “the Fed may ultimately decide to move in this direction, but we see little chance that this will happen on Wednesday.”

Although Hatzius did not discuss the implications of the Fed meeting for the gold price, considerable uncertainty remains for the yellow metal, at least in the short term. While Bernanke and his fellow central bankers have committed to a near-zero Fed funds rate through mid-2013, the likelihood of a third round of money printing in the near future remains somewhat low.

Gold prices will go higher regardless of the FED announcement

The case for gold remains bullish says Tim Harvey, Senior VP at ETF Securities, the news from Europe especially Greece and Italy are very bullish and investors were very bullish at the LBMA conference this week and that prices will move higher no matter what the Federal Reserve meeting outcome ....this retreat of Gold price is mainly due to the strength in the US Dollar ....this is a golden opportunity to load on Gold and silver before the prices shoot up again to new highs

Bill Still : There is No Gold at Fort Knox

Author and filmmakerBill Still, director of The Money Masters & The Secret of Oz, is with Max Keiser and Stacy Herbert on the Keiser Report ,he speaks about the Fort Knox gold , He confirmed that there is no gold left at Fort Knox , Bill Still is famous for being against a gold standard economy ,very strange indeed coming from a knowledgeable and wise man that he is . I do not agree with his arguments but I listen to his ideas with an open mind .  Bill Still 's latest book is No More National Debt. In it, he continues his investigation into the fraudulent debt-based monetary system that is has been systematically destroying the United States. No More National Debt sounds the battle cry for a new human rights movement for the 21st century.

Gold is a good safe haven

Gold extended its gains Wednesday morning, as gold price surged $30.80, or 1.7%, to $1,809.70 per ounce. The rebound in gold follows the sector’s large declines from yesterday. Monday’s weakness was fueled by considerable strength in the U.S. dollar, particularly against the euro currency. On Tuesday, however, gold and silver bounced back alongside the general commodities complex despite stabilization in the euro/dollar currency cross near 1.3670.

Dennis Gartman, the long-time commodities investor and publisher of The Gartman Letter, wrote on Monday that given strength in the U.S. dollar, commodities and equities are likely to remain under considerable selling pressure. “We have to believe that gold too shall be and remain lower,” Gartman wrote. “There’s no other course of action” for the gold price to follow, he continued.

While Gartman’s short-term bearish outlook for the gold price appeared quite prescient given yesterday’s sell-off, many other investors see escalating sovereign debt and recession concerns across Europe and the U.S. as key catalysts for higher gold prices over the longer-term. One individual to share this view is Tony Hall, whose Duet Commodities Fund Ltd. has surged 33% year-to-date. According to Bloomberg, Hall recently predicted that the gold price may reach a new all-time high of $2,200 per ounce by the end of this year.

“The fear of recession, the fear of worse economic numbers is weighing on commodities and stopping gains from fundamentals from coming through,” Hall stated. “We still believe in the gold story. If you believe the world is in trouble or in further economic growth disruption, then gold is a good safe haven. If you believe that the world is going to come out okay, then it’s a good inflation hedge.”