Gold Market Goes Quiet - Do We Hear The Echo Of The Bottom? [11]
Demand for gold is soaring according to the World Gold council’s latest report. The report shows that overall worldwide demand for gold rose by a very significant 33% with the US, Europe, China and Russia all stocking up and pushing demand. Central bankers, lead by Russia, are stocking up aggressively.
With fundamentals like these, why are gold prices not soaring? Crowd psychology might be one reason. Sol Palha of Technical Investor explains.
Year-on-Year Changes in Gold Demand, By Category (Source: WGC [12])
“Fundamentals do not drive the market; they just provide you with a picture to somewhat justify your biased views. What drives the market is emotions, and some technical indicators have the ability to pick up on these emotional changes. Crowd psychology is probably one of the best and least utilized tools when it comes to spotting topping and bottoming action”.
“From the Technical analysis perspective, gold has one more leg down, but the last leg might or might not be too steep. It will serve to bolster the foolish notion that the Gold bull is dead. Every bull market undergoes a back-breaking correction, and Gold is no exception. We believe the next leg up will yield even larger profits”.
Technical Investor“To indicate that a bottom is in place, Gold cannot close below 1050 on a weekly basis; failure to hold above this level should lead to a test of the 1000 ranges, with a possible overshoot to $950”.
“From the mass psychology perspective, Gold is very close to putting in a bottom. Sentiment investors, contrarian investors and investors who are familiar with the concept of mass psychology should consider taking a closer look at the precious metal’s sector now”.
Read of Palha’s analysis: “Is Gold on the verge of a breakout? [13]”
Read more on the GoldCore.com blog [11]
Other sources:
- Gold Bullion Demand Surges 27% In Q3 – New Chinese “Buying Spree" [14]
- The Gold Bull is Dead [15] - Tactical Investor
DAILY PRICES
Today’s Gold Prices: USD 1072.20, EUR 1011.10 and GBP 711.23 per ounce.
Yesterday’s Gold Prices: USD 1073.00, EUR 1008.32 and GBP 709.67 per ounce.
(LBMA AM)
Gold in EUR - 1 Month
Gold managed a gain yesterday rising $6.70 to close the day at $1075.40. Silver gained a marginal $0.06 to close at $14.17. Platinum lost $4 to $839.
IMPORTANT NEWS
Gold rises 1 percent on softer dollar, Turkey-Russia tensions – Reuters
Gold Ends Higher As Middle East Tensions Spur Haven Demand – WSJ
Gold extends gains on geopolitical tensions but US rate view drags – Reuters
Asia Stocks Slip as Syria Angst Buoys Gold; Ringgit Jumps on Oil – Bloomberg
Wall Street ends higher on energy lift – Reuters
IMPORTANT ANALYSIS
The case for why gold may finally be nearing a bottom – MarketWatch
How Roman Coins Found Buried in Swiss Orchard Reinforce Gold Ownership Today – Market Oracle
Is Gold on the verge of a breakout? – GoldSeek.com
The Success of Irish Economic Austerity: The Joke is on Krugman – Market Oracle
US Mint has no “sufficient to meet public demand” requirement – 24hgold.com
Read more News & Commentary [16] on GoldCore.com
Must-read guides to international bullion storage:
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Download Essential Guide to Gold Storage in Switzerland [17]
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Download Essential Guide to Gold Storage in Singapore [18]
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