The price of gold slipped in London on Thursday fixing at its lowest point since July 8th on the back of continued concerns about the Eurozone crisis and long liquidation
Author: Adrian AshPosted: Thursday , 29 Dec 2011
LONDON (BULLIONVAULT) -
The WHOLESALE MARKET gold price fell further on Thursday in London, hitting its lowest London Gold Fix since 8th July at $1537.50 per ounce - 19% below Sept's record high - on what dealers called "long liquidation" and "pressure" from the Eurozone debt crisis.
New laws in Japan were also blamed for forced sales during Asian trade, with bullion dealers obliged to report all physical transactions above ¥2 million ($25,600) to the tax authorities starting New Year's Day.
Physical gold bullion flows in Europe are "very light - unsurprisingly for this time of year," says Swiss refinery and finance group MKS.
"[A] few accounts [were seen] bailing out on the break of $1570" on Wednesday, MKS says, with "the rest of the move driven by illiquidity and forced sellers pushing themselves out as they push [the gold price] lower."
On a closing-price basis, "Support sits at the trendline off the October 2008 low, currently at $1543," says Russell Browne's technical analysis for Scotia Mocatta, pointing to the uptrend in the gold price starting with the collapse of Lehman Brothers 3 years ago.
That support level is "followed by the September [2011] low around $1533," reckons Browne.
The Euro sank 1.5¢ on Wednesday after new data showed the European Central Bank's balance-sheet swelling to €2.7 trillion last week on making the first of its "unlimited" three-year loan offers to commercial banks.....
New laws in Japan were also blamed for forced sales during Asian trade, with bullion dealers obliged to report all physical transactions above ¥2 million ($25,600) to the tax authorities starting New Year's Day.
Physical gold bullion flows in Europe are "very light - unsurprisingly for this time of year," says Swiss refinery and finance group MKS.
"[A] few accounts [were seen] bailing out on the break of $1570" on Wednesday, MKS says, with "the rest of the move driven by illiquidity and forced sellers pushing themselves out as they push [the gold price] lower."
On a closing-price basis, "Support sits at the trendline off the October 2008 low, currently at $1543," says Russell Browne's technical analysis for Scotia Mocatta, pointing to the uptrend in the gold price starting with the collapse of Lehman Brothers 3 years ago.
That support level is "followed by the September [2011] low around $1533," reckons Browne.
The Euro sank 1.5¢ on Wednesday after new data showed the European Central Bank's balance-sheet swelling to €2.7 trillion last week on making the first of its "unlimited" three-year loan offers to commercial banks.....
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