Sunshine Profits

Stocks at Rock Bottom, Gold at Top – Is a Bigger Correction Underway?

Nowadays one can safely say that gold has come around full circle, its shine untarnished by the passing years as it has reclaimed its respected place at the heart of the financial system. The debate over a return to the gold standard has resurfaced in the last few years in a way that has not been seen in the four decades since 1971 when President Richard Nixon decided to severe the dollar’s ties to gold. Gold is shining brightly

We are marking a dubious 40-year anniversary this week. It was on August 15, 1971 that President Richard Nixon unilaterally “closed the gold window,” severing the dollar’s ties to gold forever, possibly one of the most significant policy decisions in modern economic history.

We’ve entered summer, a typically slow season for the metals, which is why they call it the summer doldrums. Gold closed June just 1.8% lower than it first started

Many times, we had talked about economic stability and precious metals markets and how significantly macroeconomic data influence the prices. While Greece is almost at the brim of a potential non-equilibrium, here comes again the scenario economic stability vs. precious metals

Increased volatility seen in silver market in the recent past has reflected in market sentiments, and no wonder that we have received many questions about silver fundamentals and the COMEX margin requirement hike.

Silver was one of the top priorities for many of precious metal traders until last week. However, silver market witnessed a dramatic turbulence in recent days.

Gold market witnessed a bumpy roller coaster ride during the week. An interesting thing to observe was the reasons that economic commentators gave for price fluctuations. On Tuesday gold for June delivery lost $14.50 to settle at $1,453.60 an ounce at the Comex division of the New York Mercantile Exchange. The gold price has traded as high as $1,468.50 and as low as $1,445 while the spot gold price was shedding more than $11.

Before moving on to the timing-related part of this essay (in fact a continuation of our previous essay Breakouts in Gold and Silver Prices), let’s take a few moments to focus on the big picture. Namely, we would like to draw your attention to some interesting facts about the main point of our interest – gold.

China Central Bank’s recent announcement of a rise in lending and deposit rates caused gold to trade close to US$1,430 on Tuesday, Asian trading time. However, long-term trends in precious metals are UP although the current investor sentiment appears mixed.

There are so many news items affecting precious metals, especially gold, these days. The precious metals glittered in their roles as havens as euro-zone debt worries resurfaced increasing the anxiety among market participants already jittery about $106 oil, the fighting in Libya, protestors killed in Syria and the nuclear crisis in Japan.

In our previous essay entitled Significant Breakdown in Gold or a Short-term Bottom in Platinum we mentioned that the recent breakdown in price of gold from the yen perspective should not make Gold Investors concerned about the healthiness of the bull market as there was a good fundamental explanation behind this phenomenon