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Gold Dips Below $1,600

February 16, 2013 at 2:54 by Vladimir Vyun

Gold fell on the last trading session of this week, going intraday below the $1,600 per ounce level for the first time since August. The positive macroeconomic data reduced demand for the metal as a safe haven, yet the global economy does not look healthy enough to spur need for gold as an inflation hedge.

New York manufacturing unexpectedly returned to growth in January as the Empire State Index rose from -7.8 to 10. The positive data encouraged traders to seek riskier assets. The Standard & Poor’s 500 index of stocks has gained 6.3 percent this year, while gold has lost 4 percent.

Of course, there is a chance for gold yet to rise as countries across the world engage in so-called currency wars, known also as competitive devaluation. Precious metals may find demand as fiat currencies lose their value. Yet so far gold did not receive support from that bullish factor.

Gold futures for delivery in April dropped as much as $26 (1.59 percent) to close at $1,609.50 per ounce yesterday on COMEX. Intraday, the price reached $1,596.70, the lowest level for the most active contract since August 15.

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

2 Responses to “Gold Dips Below $1,600”

  1. ehsan

    please technical analysis gold after 22 february

    [Reply]

    enivid Reply:

    Technical analysis will be posted this tomorrow.

    [Reply]

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