Market prices contain expectations about the future. In the days leading up to March 18, many buyers of gold expected a 100 basis points cut. When the cut was only 75 points, some of these buyers sold gold.
Why did gold go down today?
- Thread starter Thrashertm
- Start date
Market prices contain expectations about the future. In the days leading up to March 18, many buyers of gold expected a 100 basis points cut. When the cut was only 75 points, some of these buyers sold gold.
freedominnumbers
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I follow the currencies and this behavior is normal. Most people do not know the facts about how our system is built and therefore they trade on "conventional" wisdom. This is why contrarians (those who know how it works) make a regular and decent take off those bidding up dollars.
A clear evidence of this is how the professionals have no grasp of the effect of a weak dollar on oil prices.
A clear evidence of this is how the professionals have no grasp of the effect of a weak dollar on oil prices.
jaybone
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IMO, PMs were due for a normal correction after shooting up so far so fast.
The 0.75% cut instead of the full point added some pressure.
We are also getting close to the end of the quarter and many funds may be starting their window dressing early, probably due to the extreme volatility lately.
Oil has been pulling back a bit lately.
All these seperate forces have made an opportune time for the central banks of the world to suppress gold price with derivatives.
I think there were alot of panicked shorts on the COMEX that desperately needed a selloff to cover some positions, this will give them that opportunity.
I bought yesterday near $1000, and have absolutely NO regrets.
I will be stepping to the bat for some discounted gold shares near the closing bell today also.
The 0.75% cut instead of the full point added some pressure.
We are also getting close to the end of the quarter and many funds may be starting their window dressing early, probably due to the extreme volatility lately.
Oil has been pulling back a bit lately.
All these seperate forces have made an opportune time for the central banks of the world to suppress gold price with derivatives.
I think there were alot of panicked shorts on the COMEX that desperately needed a selloff to cover some positions, this will give them that opportunity.
I bought yesterday near $1000, and have absolutely NO regrets.
I will be stepping to the bat for some discounted gold shares near the closing bell today also.
Dr.3D
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Exactly!
ghemminger
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If your not a trader - I would reccomend buying PMs on the dips and holding till ye get old...they are a preservation of wealth. I'm adding to my stack during these down times...
Do you actually think, with all this Fed intervention, inflation will go away?
Do you actually think, with all this Fed intervention, inflation will go away?
HOLLYWOOD
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Supply & Demand!
With the RECESSION here; spending down, foreclosures skyrocketing, bankruptcies at an all time high, employment much worst that the FEDS will release... the demand for fuels, etc etc are dropping... which is a bit of an excuse, because globally, oil and other commodities are in great demand.
It's just the local US economy crap they serve up to the Public to get people to buy, just go shopping, stimulate the economy... but FEDS are the first to screw the Average American on ALL FRONTS.
Just look for the typical "SAW-TOOTHING" (UP-DOWNS) on the Markets/COMMODITIES... it's ALL SHORT TERM GAINS and PROFITS... GREED still exsists, just ask anyone on WALL STREET/CBOT/FEDS
With the RECESSION here; spending down, foreclosures skyrocketing, bankruptcies at an all time high, employment much worst that the FEDS will release... the demand for fuels, etc etc are dropping... which is a bit of an excuse, because globally, oil and other commodities are in great demand.
It's just the local US economy crap they serve up to the Public to get people to buy, just go shopping, stimulate the economy... but FEDS are the first to screw the Average American on ALL FRONTS.
Just look for the typical "SAW-TOOTHING" (UP-DOWNS) on the Markets/COMMODITIES... it's ALL SHORT TERM GAINS and PROFITS... GREED still exsists, just ask anyone on WALL STREET/CBOT/FEDS
TulsaRevolution
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There are some people who probably thought $1000 gold was the top. Probably others who are UNSURE if it will go up now, but, being satisfied with a 50% gain in a little over 6 months, can sell it happily at $1000. These one day or one week movements are temporary. The overall picture is gold rising as the dollar weakens and the Fed inflates. I really doubt it stays below $1000 for too long, tho it could temporarily pull back some more for the time being.
