Unfortunately, merely being oversold will not lead to a massive rally that magically pulls gold out of its slide.
The recent slide in gold prices reinforces my view that divergence analysis can be a valuable tool if applied correctly.
The rough patch started with Monday's opening bell, as a downbeat weekend reading on Chinese economic growth and the largest slide in gold prices in 30 years sent the Dow to its biggest one-day drop of the year.
There will be a lot of news to monitor and digest over the next few days and the prospect of additional quantitative easing and lower monetary policy rates this year could help stall the recent slide in gold prices.
Investors in gold-based mutual funds and ETFs like the SPDR Gold (GLD) continued their slide into the abyss last month, according to fund trackers at EPFR Global in Cambridge, Mass.
The slide in the price of gold despite recent financial turmoil in East Asia and tensions in Iraq suggest that it is no longer seen as a safe haven.
From then on the dollar reversed course such that gold began a long, twenty-year slide.
When gold fell through this level, it triggered the massive slide in prices in mid-April.
FORBES: METALS OUTLOOK: Consolidation Possible For Gold Next Week
U.S. stocks and the dollar briefly slide Tuesday afternoon and U.S. Treasury bonds and gold prices soared following the tweet.
WSJ: False Associated Press Twitter Message Sparks Stock-Market Selloff
The dumbest, most destructive economic policy of the Bush Administration has been its weak-dollar position--letting the dollar slide in value against the euro, the yen, the pound and gold.
In India, a gold industry group warned that the country is losing confidence in the metal because of its recent slide.
In India, the largest gold industry group warned that the country is losing confidence in the metal because of the recent slide.
ETFs held about 73.41 million troy ounces of gold at the end of trading Friday, down about 5.2% from April 11, before the slide, and down 13% from the start of the year, according to data from RBC Capital Markets.
The British bank has prepared a list of global currency reaction to a continued euro slide, suggesting the U.S. dollar, the Japanese Yen (JPY), and gold remain the most attractive portfolio hedging options, while other emerging market currencies provide interesting trading prospects.
FORBES: Euro Will Continue To Fall: US Dollar, Japanese Yen, Gold Best Hedging Options
应用推荐