Gold Hits Lowest Mark in Three Months Reports Federal Gold Exchange
Firmer dollar adds pressure
(EMAILWIRE.COM, March 02, 2013 ) Glendale, CA -- Gold has now fallen to its seven-month low as its third straight session of weakened prices have continued to creates groans amongst traders. Signs that the Federal Reserve were considering the scale back of the duration of U.S. Monetary stimulus programs, which sparked fear in the investors who may have otherwise kept gold at least at par.
There were a number of Federal Reserve officials that believe the central bank might have to choose between slowing or stopping the purchases of bonds before seeing a significant pickup in the program, according to minutes of the central bank's policy meeting.
The Fed went three rounds of quantitative easing, which played a pivotal role in gold's record-breaking rally in 2012, as the metal's inflation-hedge seemed to attract investors who were concerned about currency debasement. That fear came from the rampant printing that had come from the central banks.
The sentiment had started to shift over the last year when the signs crept up from the woodworks that the U.S. Economy started to recover. That, in turn, raised doubts that the necessity of large-scale quantitative easement in gold had begun.
"It is all about the Fed," said a Shanghai-based trader, "Physical material buyers may jump in at this level, but investors are mostly cautiously watching the next move."
According to the trader, the next support won't be seen until $1,527, the lowest in 2012.
The dollar firming its position also added pressure. As the dollar index went upward to a three-month high in the last session, weight on the dollar-priced commodities for a stronger greenback made them more expensive for buyers.
Technical analysis has stated that spot gold could extend its losses to anywhere between $1,538 and $1548 per ounce during the day, according to its wave pattern, stated Wang Tao.
There is a lot of physical buying in the region," said Brian Lan, Managing Director at GoldSilver Central Pte Ltd in Singapore, adding that in the longer run gold still remains attractive.”
"As long as the problems in US and European economies are not fully resolved and interest rates remain low, the macroeconomic environment should still be good for gold."
About Federal Gold Exchange
Federal Gold Exchange (http://www.federalgoldexchange.com/) brings customers a high-quality information and prices on exchange for precious medals. Read over industry headlines, and learn about gold and silver exchanges today. Visit the website to learn how to invest in gold and ways to invest in gold.
There were a number of Federal Reserve officials that believe the central bank might have to choose between slowing or stopping the purchases of bonds before seeing a significant pickup in the program, according to minutes of the central bank's policy meeting.
The Fed went three rounds of quantitative easing, which played a pivotal role in gold's record-breaking rally in 2012, as the metal's inflation-hedge seemed to attract investors who were concerned about currency debasement. That fear came from the rampant printing that had come from the central banks.
The sentiment had started to shift over the last year when the signs crept up from the woodworks that the U.S. Economy started to recover. That, in turn, raised doubts that the necessity of large-scale quantitative easement in gold had begun.
"It is all about the Fed," said a Shanghai-based trader, "Physical material buyers may jump in at this level, but investors are mostly cautiously watching the next move."
According to the trader, the next support won't be seen until $1,527, the lowest in 2012.
The dollar firming its position also added pressure. As the dollar index went upward to a three-month high in the last session, weight on the dollar-priced commodities for a stronger greenback made them more expensive for buyers.
Technical analysis has stated that spot gold could extend its losses to anywhere between $1,538 and $1548 per ounce during the day, according to its wave pattern, stated Wang Tao.
There is a lot of physical buying in the region," said Brian Lan, Managing Director at GoldSilver Central Pte Ltd in Singapore, adding that in the longer run gold still remains attractive.”
"As long as the problems in US and European economies are not fully resolved and interest rates remain low, the macroeconomic environment should still be good for gold."
About Federal Gold Exchange
Federal Gold Exchange (http://www.federalgoldexchange.com/) brings customers a high-quality information and prices on exchange for precious medals. Read over industry headlines, and learn about gold and silver exchanges today. Visit the website to learn how to invest in gold and ways to invest in gold.
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Tel: (855) 787-3343
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Federalgoldexchange.com
Customer Service
Tel: (855) 787-3343
Email us
This is a press release. Press release distribution and press release services by EmailWire.Com: http://www.emailwire.com/us-press-release-distribution.php.