From mid March to early may the price of the Comex June gold contract (GCM8) pulled back about 190$ (1038$ > 846$) currently trading around 885$ . Along gold recent weakness there is some USD strength vs some of the other popular currencies such as the Euro , Yen , British pound, Swiss frank and others.The trend is still down ( as defined by the diagonal line connecting the major top (1038$ at
Gold is down trending and aiming to break support at first April low (876.5$ for GCM8). The price of gold failed to penetrate the 50% Fibonacci resistance at 957.54 and selling pressure pushed the price lower.Resistance at diagonal upper trend line, ~906.5$ , ~938$ (38.2%Fibonacci) , ~976$ (61.8% Fibonacci) , ~1003$(76.4% Fibonacci) and the high of 1038$. Support at 876.5$ ,~860, 850$ -840$ , ~
The bulls had a few moments of grace as the price of gold managed to trade above the diagonal trend line resistance, but gold failed to penetrate the secondary top at ~960$ and pulled back ~50$. resistance around ~938$ (38.2% fibo) , ~976$ (61.8% fibo) , ~1003$(76.4% fib) and the high of 1038$.support at ~888$, 876.5$ 850$ -840$ , ~820$, 792$. All price relating to Comex gold June contract (GCM8)
Dear readers ,General observation: In the last several weeks some actions took place, all of them in order to stabilize systematical large size financial risks. Major central banks such as the US Federal Reserve(Fed) and the ECB are keeping a closer eye on the markets, apparently being more flexible and “creative”.The above has probably a negative continues influence on the affinity to physical
The climate: Continued stress of banks and other financial institutions. In my opinion the source of this stress is illiquidity of non trade able (unlisted at a public exchange) financial “products”.Outlook: High volatility is present in all markets, extreme events in which investment banks remove huge amounts of liquidity while central banks creates huge amount of liquidity to fill the “holes”
The price of gold advanced about 300$ in the last 6 month. If you multiply that by ~150,000 tons (estimation of total gold above ground - worldwide) then all of that is worth ~ 150,000{tons) x 30,000{average ounces in ton) x 1000(gold futures price estimation) = 4,500,000,000,000$. 4.5 Trillion.What does it mean? Well… all the gold that people have ever mined is worth about:100 times more then
Subscribe to:
Posts (Atom)