All the fair-weather gold bugs are running for the exits with the supposedly good news of “Osama’s” death. I should have called this… *kicking self…
But Osama’s death isn’t really any kind of important news so this is a flimsy correction. All the circumstances that have been driving the gold price up to this point in time remain in place. Jim Rogers et. al. have been recommending to hold something other than gold… oil, ag, certain foreign equities, etc. and so if you’ve been following their sound advice, this correction shouldn’t be hurting too bad. This is a good opportunity to buy on the way down the correction (which is why you should have been holding something other than gold… a correction was inevitable).
Gold bullion is priced at around 1474 as I type this. The trendline would suggest it needs to drop another 100-150 before falling below the line. Most likely this is the case of folks taking their earnings, but I suspect we’ll see it pick up again.
Silver is doing the same, as are most of the metals. Silver is pretty volatile anyway, so I think there’s something else going on.
Looks like just about every market is going down. I’m reading reports that suggest this is the result of too much borrowing on the margin. With the steady rise of commodities, I’m sure there are a number of players who’ve been over extending their positions to get the next chunk of profit. Can’t say this is a flash-crash, but it’s seems eerily familiar. Perhaps the QE1 and QE2 money is at work here.
I’m not too surprised its falling some. Since 2008 I’v been thinking it would rise substationally, fall some, and then ‘settle’ somewhere between where it was and where it peaked.