GoldCore Update: Gold Correction of Some 10% to $1,100 Level?

Gold
As expected, gold has continued its pullback of Friday overnight and this morning. Gold is currently trading at $1,139.40/oz and in euro and GBP terms, ir is trading at €772/oz and £697/oz respectively.

The speed of the sell off surprised some on Friday but volatility looks set to remain high and may even increase. The titanic battle between those long the market (many of whom are attempting to accumulate physical bullion) and those with more short term horizons who are short the market is set to continue. The longs have had the upper hand in recent weeks but the sharp sell off on Friday and the slightly lower weekly close did damage to gold from a technical point of view and could result in a further sell off this week. Support is at $1,100/oz and then at previous resistance $1,030/oz.

A sell off is likely to be sharp (as most sell offs in gold in recent years have been)  and could even give up much of the gains seen in November (gold up 14%). Gold corrections have often been of the magnitude of some 10% in recent years and that would see prices fall from the recent high near at $1,226/oz to around $1,100/oz. However, it is likely that at the end of the year 2009, gold will still have again outperformed most other asset classes and remained in its secular bull market. A correction in gold may coincide with a much anticipated period of strength for the dollar and could see riskier assets such as commodities and equities come under serious selling pressure.

Silver
Silver has been following gold and it also dropped overnight. Silver is currently trading at $18.05/oz, €12.20/oz and £11.02/oz.

Platinum Group Metals
Platinum is trading at $1,436/oz and palladium is currently trading at $371/oz. While rhodium is at $2,425/oz.

Find out First – Register Now For GoldCore’s Exclusive Market Updates

Mark OByrne

Also on news-goldcore-com

Videos

Gold and Silver Chart Analysis January 2023 with Patrick Karim

Gold, Rate Hikes and The Central Bank Illusion?

Top 5 Gold Buyers’ Motives Revealed

Blog posts

US Federal Reserve Sticks To The Script But For How Long?

Those watching the gold price and price of silver will have noticed the sharp uptick following the Federal Reserve’s announcement, yesterday. This was despite the Fed doing exactly what everyone expected them to do. For now, the Federal Reserve is sticking to its relatively well-telegraphed plan but how long will it be until they need […]

READ MORE

China and the US at sovereign debt war

US dollar hegemony has long been a standard feature of the global financial and economic system. But developments in recent years and months (weeks, even) suggests there are more than a handful of countries who are looking to rely less on the US dollar. Instead countries who have long been at the mercy of the […]

READ MORE

What happens if the debt ceiling raises

It’s that time again when the US government has to prepare itself for an internal battle to raise the debt ceiling so it can meet various obligations. This is a merry dance that has been danced before, as we mention below. For sure, every time it happens fewer and fewer people are convinced of the […]

READ MORE

Featured

The King and Queen will be Gold and Silver

READ MORE
Newsletter
Category
Archives
Popular

No posts available

Videos

Gold and Silver Chart Analysis January 2023 with Patrick Karim

Gold, Rate Hikes and The Central Bank Illusion?

Top 5 Gold Buyers’ Motives Revealed

Blog posts

US Federal Reserve Sticks To The Script But For How Long?

Those watching the gold price and price of silver will have noticed the sharp uptick following the Federal Reserve’s announcement, yesterday. This was despite the Fed doing exactly what everyone expected them to do. For now, the Federal Reserve is sticking to its relatively well-telegraphed plan but how long will it be until they need […]

READ MORE

China and the US at sovereign debt war

US dollar hegemony has long been a standard feature of the global financial and economic system. But developments in recent years and months (weeks, even) suggests there are more than a handful of countries who are looking to rely less on the US dollar. Instead countries who have long been at the mercy of the […]

READ MORE

What happens if the debt ceiling raises

It’s that time again when the US government has to prepare itself for an internal battle to raise the debt ceiling so it can meet various obligations. This is a merry dance that has been danced before, as we mention below. For sure, every time it happens fewer and fewer people are convinced of the […]

READ MORE

Featured

The King and Queen will be Gold and Silver

READ MORE