8/24/2011 @ 8:29PM |1,562 views
Gold Bruised But Bullish With Bernanke On Deck
Spot gold closed down 4.3% at $1754 per ounce in New York Wednesday evening, while gold for December delivery on Comex fell 5.5%.
In the past two months, gold had gained a steamy 30% before dropping 8% in the last two days. The move drags the gold price below its 10-day moving average on the highest volume in nearly a year, reversing the spectacular upward momentum since July 1.
Despite the damage to the near-term trend, gold bulls can take heart that the two-day sell-off only brings the price down to where it was a week ago. At $1754, gold is $127 above its 50-day average of $1628.
Perhaps gold also senses that Ben’s efforts to keep borrowing rates low for the next two years may actually spark rates higher because of the stimulative effect it will have on the economy. Higher interest tend to do to gold what silver bullets do to werewolves.
http://www.forbes.com/sites/johndobosz/2011/08/24/gold-gives-ground-stays-on-bullish-path-with-bernanke-on-deck/?partner=yahootix
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