Gold Price Rebounds, Awaits Bernanke

The gold price rebounded Wednesday, gaining $24.74 to $1,854.37 per ounce, after plunging $67.90, or 3.6%, to $1,829.63 per ounce yesterday amid widespread liquidation in precious metals.  The spot price of gold sank after climbing to a new all-time record high of $1,913.60, but subsequently plummeted as investors and traders booked profits in the yellow metal.  In doing so, the spot price of gold posted its largest single-day decline since a 3.7% drop on July 1, 2010.

One factor contributing to the decline in the gold price was the Shanghai Gold Exchange’s decision to hike margins to 12%.  Read More »

Gold’s Win Streak Snapped amid Plunge to $1,830

Gold’s five session win streak of new all-time highs ended with a bang on Tuesday.

COMEX gold futures – per the December contract – surged to a fresh high of $1,917.90 in overnight trading, but subsequently tumbled amid broad-based liquidation in precious metals.
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Gold “Correction” Ahead, Silver to Outperform?

In light of gold’s negative reversal on Tuesday, the odds of a more meaningful correction in the yellow metal have increased, according to UBS analyst Edel Tully.

In a note to clients, Tully wrote that gold’s rally in recent weeks “surprised most in the market, even those in the most bullish camp.”
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