Gold on New Weekly Low — Fails Attracting Speculative Money
Gold continued to go down today and reached its weekly minimum level as commodity investors had much better trading ideas than buying gold at historically high levels. With no QE3 on the horizon, such alternatives as oil and corn were favored by the market participants.
While there is a clear support level formed between $1,520 and $1,555 on gold, obviously enough, commodity traders are reluctant to invest further in this precious metal. After the Main Street has bought at historical highs above $1,700 levels, it will be hard to find “greater fools” to sell gold with profit compared to its current price.
The lack of a strong trading idea, such as inflation (which is still low in the USA) or immediate money printing by the Federal Reserve (the
The central tendency of the Committee’s projections is that inflation will be 1.2 to 1.7 percent this year, and at or below the 2 percent level that the Committee judges to be consistent with its statutory mandate in 2013 and 2014.
With no inflation spikes, there are no fundamental reasons for gold prices to grow now.
Gold fell from $1,582.23 to $1,578.35 per troy ounce as of 15:46 GMT today. It reached the daily low of $1,567.15/ounce earlier — the minimum level since July 13.
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