Thursday, May 5, 2011

Gold Fundamental Analysis Daily May 6, 2011

Gold Fundamental Analysis Daily May 6, 2011 : Gold continued the heavy decline on Thursday fueled by the heavy sell-off on commodities and the losses in equities which extended the liquidations. The metal rebounded in the European session after dipping below $1,500 an ounce where the dollar strengthened and the euro fell strongly after Trichet negated expectations for a June hike by dropping the words “strong vigilance”.

We can see silver extending the heavy and strong correction as investors still close their long speculative positions after the requirement rules change and the other partner, crude oil, slumped heavily on growing bearish signs in the market for slowing demand on the back of the sluggish recovery that is loosing momentum.

The news of hedge funds joining the race and closing their positions on gold and silver intensified the decline this week. News this week from the Wall Street Journal that several large hedge funds including George Soros and John Burbank liquidated considerable portions of their holdings in gold and silver extended the drop.

We can see that the correction is on going and even the bearish sentiment in the market over the outlook for the recovery did not sustain the gains for the metal, especially as the dollar gained ground and risk aversion was evident with the Yen strengthened above 80 for the first time since the coordinated intervention in March.

The focus on Friday will be on the jobs report and the outlook for growth in the US and the global economy. The downbeat figures might intensify the risk aversion and support the dollar, keeping the metal pressured south, yet with the week coming to an end the metal might be supported with downbeat figures but only since investors square their positions ahead of the weekend as the odds are still bearish for gold for NOW!

Trichet maintained his view for high inflation and that will linger above 2.0% for some time and the downbeat sentiment in the market is support for the metal in general as the general sentiment in the market for gold remains bullish and for now it is a correction and will continue over the interim. Source www.meta4forexbroker ...

Gold prices Predictions News 6 May 2011

The Rush For Gold Begins
Even with gold prices soaring, the jewellery shops see no dearth of sales on the occasion of Akshaya Tritiya which falls on May 5th and 6th(starting from 3:15 pm on 5th to 4:15 pm on 6th). Read More...

Silver Set for Worst Weekly Drop Since 1975 Amid Commodity Rout
Silver futures headed for the steepest weekly decline since at least 1975 as an increase in margin requirements and slump in commodities from copper to oil prompted investors to sell precious metals. Gold is set for the biggest drop since the week to Feb. 27, 2009. Read More...

High Gold, Silver Prices Lift Goldcorp
Goldcorp(GG_), the crème de la crème of gold growth stocks, turned in a strong quarter, but may be facing headwinds. The gold miner made 50 cents a share, 2 cents above estimates, mainly due to a lower tax rate, produced 637,600 ounces of gold at total cash costs of $188 an ounce and sold 98% of the gold -- and therein lies the rub. Read More...

gold and silver plummet on global economy fears
gold and silver nose-dived yesterday, as investors sold commodities over worries about the health of the global economy. It was the biggest drop in the cost of raw materials in almost two years, amid negative economic data that showed the US jobs market is struggling to recover. Read More...

Gold Slumps On Strong Dollar, Silver Losses
-Gold prices slumped below $1,500 per ounce for the first time in six days as a stronger dollar amplified negative sentiment toward precious metals forged by a 23% dive in silver prices. The most actively traded gold contract, for June delivery, was recently down $26.80, or 1.8%, at $1,488.50 per troy ounce on the Comex division of the New York Mercantile Exchange. Read More...

Golg Prices Outlook May 6 2011, Gold Prices Forecast may 6 2011, Gold News 6 May 2011.
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