Everything You Need To Know To Sell Gold Online
Profit Taking Continues: Gold Dropped Slightly
by Michael Locklear
September 24, 2012 – Gold prices fell slightly today retreating from its previous near seven month high. The spot price for gold was lower today at $1763.30 per ounce as more investors seek to take profits in response to lower crude oil and grain prices. Gold is taking a brief respite as traders watch tomorrow’s news on U. S. Comex gold option expiration, which some analysts say will bring more volatility to the market.
Some say the bullion market may be suffering from minor exhaustion after its recent five-week rally and bullishness may diminish somewhat since the market has failed to reach beyond $1790 per ounce so far this year. Comex gold options trader and president of Tower Trading, Anthony Neglia said, “There’s no question that gold is consolidating its recent gains, but every dip seems to be bought”. The market could see further selloffs if the price for gold fails to reach $1800 per ounce in the near future. Friday did however see gold approaching its February 29, 2012 peak when it rallied around $1787.20, just slightly south of the $1790.30 high mark for this year.
Major investors are still moving towards gold as they continue to seek a safe haven for their money against increasing risks of inflation expected to result from recent moves by major central banks to further stimulate their economies with further monetary easing. Bloomberg is reporting that Asia-Pacific wealth-management solutions chief, Mark Smallwood said, “Gold has historically been considered to be a store of value and an inflation hedge and increasingly it is being utilized as a monetary instrument. There is a growing interest among our clients to gain exposure with an increased preference for physical holdings”.
This month has seen Central Bank’s round the world moving towards increasing liquidity for monetary easing an attempt to stabilize their economies. The European Central Bank, the Federal Reserve, the Bank of Japan in China’s new infrastructure support plan have all given investors something to be nervous about. In response they are seeking to hedge the risk and gold is the natural choice.
Even while gold prices are fluctuating, in some cases more than a few times every day, high value investors continued to see gold as a safe place for their money. These investors are seeking more more to own physical bullion rather than holdings related to other markets which may become volatile themselves.
Nonetheless analysts are still predicting record highs for gold with some saying the goal reached $2400 per ounce by the end of 2014 if the recent monetary easing announced by the Federal Reserve continues until then, this according to the Bank of America on September 18. On the same day Deutsche Bank predicted that they see the spot price of gold increasing to $2000 per ounce in the first or second quarter of 2013. In addition the world Gold Council has predicted that central banks may purchase up to 500 tons of the precious metal by the end of 2012.
Although there may be some frustration in the market on a day-to-day basis the long-range predictions for the future of gold still remains bullish. There are a lot of players in the game, and although some may be taking profits now others are moving to acquire as much gold as they can get their hands on.
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