“Gold slid over 4 percent to as low as $1,086 an ounce in early trade on Monday, before paring back some losses over the course of the day. It was down 2.3 percent at $1,107 at around 12:00 SG/HK time…
Bulls concede defeat
“The disappointing performance of the yellow metal, which is down 6.4 percent on a year-to-date basis, has sent gold bulls into retreat.
“Technical analyst Daryl Guppy also warned of “bearish features” on the gold chart: “There is a higher probability of a future fall below $1,150 and a continuation of the downtrend towards historical support near $980.”
“Wherever you look, there really is no support for the precious metal,” said Howie Lee, investment analyst at Phillip Futures, who has been targeting gold to hit $1,100 since the start of the year.
“Developments in China, whether in terms of central bank buying or jewelry demand, are simply not sufficient to keep gold prices at high levels,”
PREVIOUS GOLDWATCHER ON CHINA DEMAND
“The gold price spiked to over $1900 between 2007 and 2011 when gold was being over hyped as a safe haven. In spite of the severe correction that followed the prophets of doom continue to hype gold relentlessly. Claims that China is on course to imposing a new gold standard to strengthen its credentials with the IMF is the latest absurd pitch.”
Readers of Goldwatcher Fact Based Analysis would not have been taken by surprise by the recent price plunge or previous price movements.
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