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
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Silver Set for Worst Weekly Drop Since 1975 Amid Commodity Rout
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High Gold, Silver Prices Lift Goldcorp
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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...
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