Not the Currency of Last Resort as it used to be! (until when?)
The precious metal is indeed losing its luster with current prices @1175.46. A re-test of the low @1130.10 is underway with no sign of fresh buyers at this levels.
During earlier times, when we hear Russia is in the market buying gold, a bunch of chaos and a buying frenzy can be seen among traders. Apparently, those days are likewise gone. Even if news of Russia piling up gold reserves including other central banks would encourage some market activity to push prices higher. For now, we can safely say that stocks weighs heavier in value, especially when positive earnings are still coming out from market reports. Foreign currency value on gold are depressed with the effects of a stronger US Dollar. As long as the USD corrective move would not go below its more important benchmark for the 2nd quarter; this maybe too early to make a price call.as negative effects on gold would weigh bearish until a solid consolidation can be made at a reasonable base price
During earlier times, when we hear Russia is in the market buying gold, a bunch of chaos and a buying frenzy can be seen among traders. Apparently, those days are likewise gone. Even if news of Russia piling up gold reserves including other central banks would encourage some market activity to push prices higher. For now, we can safely say that stocks weighs heavier in value, especially when positive earnings are still coming out from market reports. Foreign currency value on gold are depressed with the effects of a stronger US Dollar. As long as the USD corrective move would not go below its more important benchmark for the 2nd quarter; this maybe too early to make a price call.as negative effects on gold would weigh bearish until a solid consolidation can be made at a reasonable base price
No comments:
Post a Comment