Gold Falls For 7th Straight Session
Mar 4th, 2009 | By Doug Casey | Category: Financial NewsGold traded sideways through all of Hong Kong and most of London before taking a dive below $910 as soon as the Comex opened in New York then gained a little back during the rest of the day, finishing at $915.80/oz., down $9.60. Overnight, gold is trending higher.
Platinum also went south soon after the New York open and stayed there the rest of the day, ending at $1031.00/oz., down $27.00. Overnight, platinum has shot upward.
Silver tracked gold’s path pretty closely, falling off early in New York before gaining some ground in electronic trading on the Globex later in the day, closing at $12.83/oz., down 12 cents. Overnight, silver is sharply higher. (Click here for charts)
Gold prices fell again Tuesday, bringing the grand total lost over the past seven trading sessions to $77.40. Meanwhile, silver has fallen $1.58 during the past six sessions.
Gold prices had been trending higher in recent weeks, benefiting from some safe-haven buying amid economic concerns, but they have shown weakness in the past few sessions, falling along with stocks.
“Sometimes there is movement out of all assets, even safe havens,” said Tom Pawlicki, an analyst at MF Global Research (NYSE:MF). “The weakness we’re seeing in equities could be driving gold lower.”
While we’ve said time-and-again we think gold will eventually fully decouple from the dollar and shoot to the moon, ours is not the only opinion out there.
“We had a bubble in gold fueled by exasperation and the inability to make money in stocks,” said Brian Dolan, chief currency strategist for Gain Capital. “Investors were hit by all the bubble sales pitches that suggested gold was a ‘can’t-lose proposition.”
Dolan thinks the five-year uptrend for gold will be replaced by a five-year retreat back to the $300 to $400 range that existed before this decade’s surge. He sees the rally as a departure from gold’s typical range.
While we think Mr. Dolan couldn’t be more wrong, it’s always important to get both sides of the story.
Source: Gold Falls For 7th Straight Session
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Doug Casey is a contrarian investor, sought-after public speaker and author of several books. His work "Crisis Investing" held the position of # 1 bestseller on the New York Times list for 26 consecutive weeks. Doug's unusual views on the economy - and just about everything else - have gained a huge following in the investment community, and it certainly helps that his stock recommendations of undervalued junior exploration companies have made his subscribers millions. Now in its 27th year, Doug's monthly newsletter, the International Speculator, is one of the most established and esteemed publications on gold, silver and other natural resource investments. Together with the Casey Energy Speculator, it covers a broad range of carefully selected stocks with the very real potential of double- and triple-digit returns within 12 to 24 months.