Economist Shayne Heffernan of www.livetradingnews.com takes a look at the days Gold action.
Spot was little changed at $1,737.40 in Asian hours , Gold fell 1.5 %yesterday, the most since July, to a one-month low of $1,728.85.The metal for December delivery was also little changed at$1,738.60 an ounce on the Comex in New York. Gold prices firmed on Tuesday afternoon, recovering some lost ground from a one-month low in the previous session, as a weaker dollar, stronger stock markets and lower prices tempted buyers back to the metal.
The euro and stock markets rose as hopes that debt-laden Spain will soon seek a bailout to shore up its economy added to firm U.S. economic data and solid corporate results to sharpen appetite for assets seen as higher risk.
Gold was poised to advance for the first time in three days as some investors made purchases after prices dropped the most in three months yesterday. Bullion has risen 11 % this year , due to Central Bank easing , Gold retreated 3.3 % since climbing to an 11-month high of $1,796.10 on Oct. 5. Consumer prices in China rose 1.9 % in September slowest pace in two years,. U.S. retail sales increased
1.1 % in September, compared with the 0.8 % rise forecast.Holdings in gold ETF products declined for a second day yesterday after climbing to a record 2,582.984 metric tons on Oct. 11, Spot gold fell for a fifth day on the Shanghai Gold Exchange, dropping 0.4 % to 351.20 yuan a gram ($1,742.87 an ounce).
Volumes rose to a one-week high of 4,164 kilograms yesterday from 2,427 kilograms on Oct. 12. Cash silver gained 0.2 % to $32.80 an ounce. Spot platinum was little changed at $1,641 an ounce, while palladium advanced 0.3 % to $635.50 an ounce. From a chart perspective, gold is looking vulnerable after its drop back below its late September low at $1,737.50, according to analysts who study past price moves to determine the future direction of trade.
Support is expected to hold firm at the metal’s earlier low near $1,720 an ounce.
Shayne Heffernan oversees the management of funds for institutions and high net worth individuals.
Shayne Heffernan holds a Ph.D. in Economics and brings with him over 25 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several start ups that have seen market capitalization over $500m and 1 that reached a peak market cap of $15b. He has managed and overseen start ups in Mining, Shipping, Technology and Financial Services.Read the Terms of Service
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