Gold Price Settles Below Support
So at the end of the day, the gold price did settle well below the support price of 1360 yesterday. It finished at 1346.5 on the COMEX. The shorts are getting the best of the price at this point. Now the question is how low do they need to take the price so they can make some money.
What seems to be helping them is the Chinese. They're tightening the availability of credit in order to cool down their economy in order to slow down inflation. That action alone has pushed commodities like copper and oil down, with oil slipping below its resistance of 90. So the shorts have big brother China on their side.
In fact, the Chinese stock market has been really reeling the last few weeks as the Chinese government tightens. Stock markets don't like it when their central banks raise rates or increase bank reserve requirements - all methods they use to reduce the availability of credit. Stock markets like easy credit.
Just goes to show how big a deal China has become. Ten years ago, China telling its banks to hold more reserves would - well, it probably wouldn't even have made the news at all.
Listen. No one likes to see stuff they hold go down in price. That applies to gold too. So don't be surprised if you own gold and you feel a bit uneasy. It's natural. On the other hand, if you don't own any, maybe this is a good time to buy. What do you think?
What seems to be helping them is the Chinese. They're tightening the availability of credit in order to cool down their economy in order to slow down inflation. That action alone has pushed commodities like copper and oil down, with oil slipping below its resistance of 90. So the shorts have big brother China on their side.
In fact, the Chinese stock market has been really reeling the last few weeks as the Chinese government tightens. Stock markets don't like it when their central banks raise rates or increase bank reserve requirements - all methods they use to reduce the availability of credit. Stock markets like easy credit.
Just goes to show how big a deal China has become. Ten years ago, China telling its banks to hold more reserves would - well, it probably wouldn't even have made the news at all.
Listen. No one likes to see stuff they hold go down in price. That applies to gold too. So don't be surprised if you own gold and you feel a bit uneasy. It's natural. On the other hand, if you don't own any, maybe this is a good time to buy. What do you think?
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