Gold futures seem to be consolidating after yesterday’s sharp decline of almost $30. Yesterday it was a combination of an extremely strong US dollar along with robust selling pressure that took the precious yellow metal dramatically lower on the day.
Spot gold declined by 1.82% yesterday with the dollar index contributing .75% of that decline, and selling pressure contributing the other 1.07%.
As of 4:47 PM EDT gold futures are $1.00 lower on the day at $1511.30 after opening at $1510.90, and trading to a low of $1507.10, approximately $0.20 below yesterday’s low. It must also be noted... Read more
According to yourdictionary.com, “buy the rumor, sell the fact – is an Investment & Finance Definition; A phrase often quoted by stock or futures traders that explains price declines that occur after an anticipated positive event has happened.”
The phrase, buy the rumor and sell the fact certainly seems to be appropriate in regards to recent moves in gold. The truth of the matter is that as events unfold there is an initial knee-jerk reaction, or buying the rumor. This is sometimes followed by selling the fact a few days later.
Take the last two trading days for example, gold had... Read more
Today gold continues its upward climb trading to a high of $1543.30 before settling just off of that price point at $1539.20 with respectable gains of $7.70 (+0.50%). Since gold prices hit a low of $1491.30 on Wednesday, September 18, traders have witnessed solid daily gains with consecutive higher highs, and higher lows.
Of key importance is the current trade war between the United States and China which has been shaping gold’s bullish sentiment for quite some time recent events and hotspots seem to add energy to the current rally firmly in place.
The trade war has had the net effect... Read more
Today both gold and silver continued the dynamic rally that been the undertone to the precious metals recently. Over the last five consecutive trading days gold has closed above its opening price. The last three trading days can be characterized as having higher highs, and higher lows than the previous day.
Last week gold only had one trading day that had an extended and exaggerated price range, and that occurred on September 18th when Federal Reserve members voted to implement a rate cut of ¼%. On that day gold traded to the lowest price point of $1491, before recovering and... Read more