why gold price down 22 sept 2011

why gold price down 22 sept 2011 : Spot gold slipped under the weight of a rallying US dollar, after falling more than 1 per cent in the previous session when the US Federal Reserve announced its plan to load up long-term securities and offered a grim economic outlook.

Warning of "significant" downside economic risks, the US central bank said it would launch a $US400 billion programme to shift its $US2.85 trillion balance sheet more heavily towards longer-term debt.

The decision disappointed investors who had hoped for stronger stimulus measures, prompting a slide in stocks and commodity prices.

The worries about the euro zone's debt crisis continue to support the safe haven appeal of gold, but momentum is lacking for bullion to march towards its record high above $US1,900.

"For the short term, gold is likely to remain in the range of $US1750 and $US1850," said Ong Yi Ling, an analyst at Phillip Futures.

"If we do see $US1700, that could potentially cause greater correction to $US1500."

Spot gold lost 0.4 per cent to $US1774.55 an ounce, extending a 1.2 per cent decline in the previous session.

The most-active US gold futures contract fell as much as 2 per cent to $US1772.5, before recovering to $US1777.30.

Technical indicators bode ill for gold prices. Spot gold prices could fall towards $US1730 during the day, said Reuters market analyst Wang Tao.

The dollar index rose to a seven-month high as investors piled into the greenback, lured by the appeal of short-term rates on US bonds after the Fed announcement.

A pricier dollar makes commodities denominated in the greenback more expensive to buy for holders of other currencies.

"Investors are buying the dollar and selling gold," said Ronald Leung, a dealer at Lee Cheong Gold Dealers in Hong Kong.

"But the physical supply is a bit tight, as Asian buyers stock up on physical gold."

Investors are shifting their attention to the Group of 20 talks, due to take place in Washington on Thursday and Friday, where Europe will be under heavy pressure to stem its deepening debt crisis.

Other precious metals also weakened amid a commodity-wide slide. Spot palladium dropped to a 10-month low of $US681.5, tracking a price drop in gold as well as industrial metals.

Spot platinum dipped to a six-week low $US1748.50, before recovering to $US1750.00.

China's factory sector contracted for a third consecutive month in September as flagging overseas demand put the brakes on new orders, HSBC's China Flash PMI data showed.

Slower growth in the world's top commodity consumer could add to pressure on prices of silver, platinum and palladium, which have wide industrial applications.original post by

will euro zone's debt crisis continue, Spot platinum 22 sept 2011, gold prices 22 sept 2011, spot gold prices 22 sept 2011, Spot palladium 22 sept 2011

1 Response to "why gold price down 22 sept 2011"

Anonymous said...

Thanks for your very helpful information.

Houston Gold Merchants

Post a Comment

Submit Your Site To The Web's top 50 search engines for free!ArticleCity.comSonic Run: Internet Search EngineSearch EnginekrAdvertising BlogsBlogarama - The Blog Directoryhttp://www.wikio.comMIM - Free BacklinksBusiness Blogs - Blog RankingsLinkon Bedava - Free BacklinkFree BacklinksBusiness Blogs - Blog RankingsYour-LinkFree Backlink Exchange For SeoFree Automatic LinkMsn bot last visit powered by  Bots VisitYahoo bot last visit powered by  Bots Visit Google bot last visit powered by Bots Visit Add to Social Bookmarking siteIndian Social bookmarking SiteTopOfBlogs eyword finde Feedage Grade A rated