Gold Price: Shoots up in spite of "vacation week"
The price of gold shot up this week. Even though this week before Labor Day is traditionally quiet, a vacation week for lots of folks, someone out there's buying gold. This was supposed to be a quiet week - as quiet as the week between Christmas and New Year's. But there it is; gold shot up anyway.
In technical terms, the chart of it's price broke out of a "triangle" it had formed and seems to be headed up to see how far over 1,000 it can get. We'll see in the coming weeks.
Why now? I don't know. But if you remember that "markets" are made up of people, something significant is going on. Some individuals or institutions feel its time to take a big stake in gold.
Could it be that they feel government stimulus will eventually lead to serious inflation in the future? Could it be that they're anticipating a correction in the stock market, after its recent run-up and want to put some money in a safe place? Could there be some other reason?
I don't know. But that's why markets can be so fascinating to observe.
Now we sit and wait to see what will happen in the coming days and weeks. When something shoots up like this, it's not unusual for it to correct itself - or at least settle down a bit. Then again, it could go up even more - there's no sure way to tell.
The irony of it is that the actual sales of gold (the metal itself) had been declining recently. Commentators jumped on this and started saying gold would be in for a big correction - maybe a longer-term correction. After all, the Indians weren't buying gold jewelry (they're a big market for gold) the way they have in the past. Supposedly Indians thought the price was too high and they were cutting back on buying.
Now that the price shot up, we read that China is pushing gold on its citizens. Didn't the same commentators know this when they were talking about Indian sales going down? Why did this Chinese news come out just now, now that the gold price shot up?
Well, can't spend too much time on this sort of dectective stuff. The price went up in spite of all the commentary. So you've got to watch out how much stuff you read or listen to. Most of it turns out to be wrong anyway.
The gold price sure wasn't listening.
In technical terms, the chart of it's price broke out of a "triangle" it had formed and seems to be headed up to see how far over 1,000 it can get. We'll see in the coming weeks.
Why now? I don't know. But if you remember that "markets" are made up of people, something significant is going on. Some individuals or institutions feel its time to take a big stake in gold.
Could it be that they feel government stimulus will eventually lead to serious inflation in the future? Could it be that they're anticipating a correction in the stock market, after its recent run-up and want to put some money in a safe place? Could there be some other reason?
I don't know. But that's why markets can be so fascinating to observe.
Now we sit and wait to see what will happen in the coming days and weeks. When something shoots up like this, it's not unusual for it to correct itself - or at least settle down a bit. Then again, it could go up even more - there's no sure way to tell.
The irony of it is that the actual sales of gold (the metal itself) had been declining recently. Commentators jumped on this and started saying gold would be in for a big correction - maybe a longer-term correction. After all, the Indians weren't buying gold jewelry (they're a big market for gold) the way they have in the past. Supposedly Indians thought the price was too high and they were cutting back on buying.
Now that the price shot up, we read that China is pushing gold on its citizens. Didn't the same commentators know this when they were talking about Indian sales going down? Why did this Chinese news come out just now, now that the gold price shot up?
Well, can't spend too much time on this sort of dectective stuff. The price went up in spite of all the commentary. So you've got to watch out how much stuff you read or listen to. Most of it turns out to be wrong anyway.
The gold price sure wasn't listening.
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