Commodity Blog

Commodity news, technical and fundamental analysis, market data on precious metals, energies, industrial metals, and soft commodities

Archives

Gold Declines for 2nd Day — Investors Don’t Want Safety

January 14, 2011 at 20:45 by Andriy Moraru

Gold continued to lose its appeal for the global investors, as the concerns around the indebted Eurozone countries went away with the efforts of the leading European economies.

The commodity set its one-week low today after rising to a ten-day high level yesterday. Gold that gained more than 28 percent last year is now losing about 4.2 percent since the beginning of 2011. While the pre-default state of several European countries contributed to gold’s popularity as the safe haven investment, gold lost its attractiveness when the worries about the euro’s future declined.

Along with the strengthening speculations among the market analysts that the worst is over for the Eurozone, the market is also affected by the understanding that gold may have reached its peak already. In the long-term perspective the metal looks quite overbought (Stochastic Oscillator readings on the monthly and weekly timeframes). Jean-Claude Trichet‘s statement that ECB may raise the interest rates also adds pressure on the price of gold.

Gold fell from $1,372.50 to $1,358.74 (or 1 percent) as of 18:39 GMT on COMEX today. Its all-time high value was registered at $1,430.50 on December 7 last year.

If you have any questions and comments on the commodities today, use the form below to reply.

Leave a Reply

required
required  

Navigation

Menu