Over The Cliff
- Thread starter SilverDJ
- Start date
Any logical reason for the big hit downwards ?
betterlatethannever
New Member
Silverman99 said:
Not logical I know but - clinton for president
www.cnbc.com/2016/10/03/gold-holds-losses-on-firm-dollar-after-positive-us-data.html
Gold slid more than 3 percent on Tuesday to its lowest since Britain's shock vote to leave the European Union in June, as a bounce in the dollar after upbeat U.S. data triggered a break of key support at $1,300 an ounce.
"Just the better risk appetite in the market this week as Deutsche Bank seems to have stabilized for the moment," said Jim Wyckoff,senior analyst at Kitco Metals. "We've done some technical damage today near-term to suggest we're going to trade sideways to lower."
Forecast-beating U.S. manufacturing data on Monday stoked expectations that the Federal Reserve will lift interest rates.
A break of support at $1,300, which had arrested the metal's August decline, led to a flurry of selling that took prices to a three-month low of $1,288.26 an ounce, a level not seen since June 24 in the immediate aftermath of the U.K.'s Brexit vote
Gold slid more than 3 percent on Tuesday to its lowest since Britain's shock vote to leave the European Union in June, as a bounce in the dollar after upbeat U.S. data triggered a break of key support at $1,300 an ounce.
"Just the better risk appetite in the market this week as Deutsche Bank seems to have stabilized for the moment," said Jim Wyckoff,senior analyst at Kitco Metals. "We've done some technical damage today near-term to suggest we're going to trade sideways to lower."
Forecast-beating U.S. manufacturing data on Monday stoked expectations that the Federal Reserve will lift interest rates.
A break of support at $1,300, which had arrested the metal's August decline, led to a flurry of selling that took prices to a three-month low of $1,288.26 an ounce, a level not seen since June 24 in the immediate aftermath of the U.K.'s Brexit vote
MetalHeart
New Member
Altima said:
I just pre-ordered several 10 oz roosters from APMEX right before everything started dropping.
mmissinglink
Active Member
It's funny how some newbie stackers are thinking that somehow they may have purchased silver at the wrong time....like when spot was USD $18-20 / oz..
Meanwhile, just a few short years ago plenty of stackers were buying silver when it was USD $35 - 40 / oz.
Perspective, people, have some perspective.
.
Meanwhile, just a few short years ago plenty of stackers were buying silver when it was USD $35 - 40 / oz.
Perspective, people, have some perspective.
.
Silverman99 said:
Good question, I've spent some time looking for an answer if only to make me feel better about cutting my losses.
I can only parrot the pundits [Kitco, silverseek, sharps pixley, gold review, bullion desk, zerohedge et al], the gist being (as far as I can make it all out):
A few recent (last 14 days or so) "better than expected" US economic news reports gave credence to concerns of an upcoming FOMC interest rate hike in the offing and DXY continued to rise steadily, coincident with Gold falling steadily to the USD 1300 level. So Gold was under pressure due to a strengthening dollar and associated worries of an upcoming interest rate rise.
Then, either someone/body decided to sell 3.2 million toz of Gold December futures, or the flash crash of GBP created a surge in DXY just as Gold closed in and around the USD 1305 -1310 mark; whatever, and probably a bit of both - the net result was a closing Gold price on the order of USD 1299 around 12:30 (NY time) which triggered a wave of stop loss selling which drove the price down and blah, blah, blah. Maybe they just wanted to go to lunch! [From what I could see it was the first instance post Brexit of DXY over 96 rising and Gold under 1310 falling]
So, price manipulation or fat finger trade appear to be the options.
The context is significant as many market watchers had been talking up the likelihood of some form of correction being imminent.
Importantly, once the USD 1300 level was breached it was on for young and old, nobody wanted to buy until long term average prices were in view. Remember the very recent payrolls number was on the horizon then.
20/20 hindsight