Gold and silver selling is gaining momentum following reports of Cyprus’ liquidation while crude oil and copper are down after China’s disappointing GDP data.
Commodity prices are facing heavy selling pressure to start the trading week. Gold and silver prices are accelerating lower after Friday’s large move lower following news that Cyprus plans to sell its reserves to raise cash for the country’s bailout. The precious metals have trended broadly lower since late September 2012 having rallied into the Federal Reserve’s introduction of the third expansion of quantitative easing (QE3) as well-anchored inflation expectations dented anti-fiat demand. Meanwhile, crude oil and copper are down amid broad-based risk aversion in the wake of China’s GDP data.Looking ahead, S&P 500 index futures are pointing sharply lower, hinting more of the same is likely ahead.
Gold selloff turns to a free fall to 1385 after reports of a margin calls hitting buyers at the Shanghai Gold Exchange as Chinese investors were known to be keen buyers. China's weaker than expected GDP figures coming in at 7.7% from 7.9% did not help metals either. Silver extends collapse to 23. Both gold and silver are seeing a Monday rebound, which many conclude to be bottom fishing by the central banks. That is what has been said when gold reached 1600, 1550 and 1500. We issued new trades on GOLD today (after Friday's trades were unfilled), SILVER and USDCAD with accompanying trading notes to lay out the rationale for these trades.
Disclaimer The analysis we provide is based on the average estimate of price movements in one day. Does not guarantee what we deliver is actually a proper and correct. Everything that happens in the decisions you make on your trading transaction is to be Your responsibilities.
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