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Gold sinks below $1,200 for first time in nearly 3 years

Discussion in 'Trading Strategies & Systems' started by harreymartin, Jun 28, 2013.

  1. harreymartin

    harreymartin New Member

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    Gold sank 2 percent on Thursday, as month-end book squaring and relentless liquidation by institutional investors sent bullion prices below USD 1,200 per ounce for the first time in nearly three years.

    Gold reversed early gains in New York trade, and the slide accelerated with stop-loss orders triggered after the price fell below USD 1,225 an ounce.

    Gold has slid nearly USD 200 an ounce in 10 days. It is down more than 28 percent for the year and is headed for a 25 percent loss for the second quarter, its biggest quarterly decline since at least 1968.

    Thursday's slide came despite gains in other precious metals and commodities, including crude oil, and even as the benchmark 10-year US Treasury yield fell below 2.5 percent. Falling yields for Treasuries usually encourage buying of gold, which pays no interest.

    Analysts cited forced liquidations of gold unrelated to market fundamentals, and quarter-end selling by funds polishing portfolios through the time-honored practice of window dressing.

    "You don't want to catch a falling knife, so people who might be buyers are stepping aside and don't want to show gold at their quarter-end statement," said Axel Merk, chief investment officer at Merk Funds which oversee about $500 million in mutual fund assets.

    http://www.amazines.com/article_detail_new.cfm/5809938?articleid=5809938
     
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