Bloodletting Slows
Aug 13th, 2008 | By Doug Casey | Category: Financial News, Gold MarketGold sagged in the overseas markets, tried to mount a rally at the outset of the New York session yesterday, but then slumped again to finish at $810.00, down $13.00. Overnight, gold has pushed higher.
Platinum rallied to the mid-point of the NYMEX, but that was all she wrote as the metal sold off to end near its intraday low at $1461/oz., down $52. Overnight, platinum is sharply higher.
Silver was in positive territory until just past the noon hour, then slid slowly lower, closing at $14.47/oz., down 17 cents. Overnight, silver is trending higher.
(Click here for charts)
Except for platinum—which seems to be probing for a true bottom—the bloodletting slowed yesterday, with both gold and silver having dreary days, but not nearly as bad as the previous session. However, gold notched an eighth straight down session, the first time that’s happened since 2001.
Bulls had good reason to be disappointed, as the dollar eased and equities dropped. But oil was off a bit. And then, reason is not exactly ruling the markets right now.
Will all of the grim economic news, gold should theoretically be holding its own. Instead, the metal has now lost $110.70, or 12%, during the month of August, after closing out July at what now looks like a very robust $922.70
Kitco’s Jon Nadler explained what’s going on thusly: On Tuesday, “the metal was the subject of long liquidation by funds and did not fully meet the anticipated bargain-hunting demand from India,” he said Jon Nadler.
“Although buying interest has picked up nicely in advance of wedding season, some local buyers are now betting that they might be able to pick up even cheaper gold if they wait some more,” Nadler added.
And James Moore, of TheBullionDesk.com, chipped in with the observation that “gold’s failure to hold above $850 and the lack of bullish reaction … to the clash between Russian and Georgian forces suggest the need for cash to cover losses in other sectors will continue to outweigh geopolitical tensions in the short term.”
But Kevin Kerr, editor of Global Resources Trader, thinks we may have reached bottom.
“The fact is that now we are getting way overdone on the downside and we could easily see this market snap back suddenly as more bad news filters in and if anymore geopolitical and currency uncertainty grows,” Kerr said.
Source: Bloodletting Slows
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