Sometimes.
Other times they go in opposite directions.
Posted on 04/15/2013 6:41:57 AM PDT by Sub-Driver
Gold Rout Continues By CLEMENTINE WALLOP, BIMAN MUKHERJI and FRANCESCA FREEMAN
Gold continued to take a battering on the spot market Monday, shedding nearly another $100 per troy ounce after weaker than expected data on Chinese first quarter growth sparked a new wave of selling on concerns that China and India, the world's two biggest buyers, may slow purchases.
The price of gold slumped to $1,400 an ounce in what appears to be panic selling after China’s first-quarter growth came in lower than expected. Other markets were also hit, with silver and other commodity prices and currencies like the Australian dollar are falling too. Photo: Bloomberg
Around midday in Europe, spot gold was down 5.2% at $1,404 a troy ounce, having earlier tumbled around $95, or 6.4%, to a two-year low at $1,385.88/oz. This follows Friday's rout, when the metal fell 5%, pushing it into bear-market territory.
Gold prices have plunged some 11%, or $170 an ounce, over the past week.
Worries are spreading that Asian buying, which has helped prop up gold prices for years, may be fading. China reported its economy unexpectedly slowed last quarter, spurring fears that Chinese consumers, faced with less cash, may stop purchases. In India, the largest gold industry group warned that the country is losing confidence in the metal because of the recent slide. Investors in Europe cashed out of the metal en masse amid concerns that U.S. stimulus may be cut short, and following news that Cyprus may sell a chunk of its gold reserves to fund part of its bailout package.
"The market saw gold going lower and everyone panicked," said Pradeep Unni, head of research at Richcomm Global Services, a Dubai-based commodity broker. "The most important factor for gold now is Indian and China demand."
(Excerpt) Read more at online.wsj.com ...
Good time to buy?
Praise the Lord, my ship has come in!
In my humble opinion, gold follows oil.
The wall of GREED & FEAR! Sellers outnumber buyers.
The market is up and people are once again getting fooled into thinking that it is a true reflection of the state of the word’s economy. The underlying fundaments all point to a coming economic collapse, that will see the price of gold skyrocket. Europe is saddled with failing economies, China is slowing down, and America sits on an ever growing mountain of debt that will soon bring hyper-inflation.
The market is ALWAYs right. Humble yourself to the market and it will exhault you. Avoid the visa versa.
Granted: Each and everything you presume is true and reasonable.
Buy low.......
I believe I will once the carnage has stopped. Panic is a good thing.
What is “LOW” to you?
I hope it goes to zero so I can buy a 100 million ounces or so for, well, the delivery charge I guess.
Putin and the Chicoms aren’t going to be happy, oops I left out the Mexicans.
“America sits on an ever growing mountain of debt that will soon bring hyper-inflation.”
Folks have been saying this for quite a few years now. My question is, what is holding inflation at the pace it is at?
Too bad for Obozo that the US Fed Gov has no abilility to manipulate this data.
What is really heart-breaking is the little guy who gets suckered into flipping his IRA into Gold. Now it is melting. Should he buy or sell?
Sometimes.
Other times they go in opposite directions.
It’s not just gold, deflation is rearing its ugly head in all commodities, stocks will follow (like in 2008).
If you want to buy something, the best time to buy is a little bit at a time on a regular basis. Buying through dips is the best way to put a smile on your face.
You’re right about the coming economic collapse. US Government officials are pulling strings on gold and silver prices to make mother government look good while they print trillions of unbacked dollars to support comrades.
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