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Worst Week for Gold in past 40 years

Worst Week for Gold in past 40 years
mines,gold,silver,oil,gazz,coal,prices,market,asia, europa,america,africa


Data from HSBC reveals historic levels of gold price volatility. Last week's price-plunge was the 7th worst in the past 40 years.
In a single week (last week, in fact) gold slipped down by a dramatic 8.54 percent. According to charts, the sharp drop fell by three standard deviations.

Gold prices haven't been this crazy since the week ending in March 21, 2008 after Bear Stearns fell. Before that, volatility levels weren't that out of control since back in March of 1983. Generally, gold moves less than one percent in any given week – in March of '83, gold sank by a shocking 11 percent.
Historically, once gold volatility eases its way into the markets, it sticks around for several consecutive weeks.

So it looks like the bullish trend is in a time-out for now. It is likely to be around, long-term. Investors are just advised to be patient; the next few weeks are likely to continue in the same volatile patterns we've observed the past two weeks.

Gold futures were climbing a bit early in trading today, but they are still being hindered by the strengthening U.S dollar index and lower crude oil prices. Gold for December delivery traded at $1,621.10 per ounce, up by $3.80 per ounce. Meanwhile, silver traded down by $0.162 at $30.26 per ounce.

Although the dollar index is trading back near this week's six-month high, gold demand from Asia is limiting gold's downside.
The gold price has certainly rebounded from its low, but it's still got a lot of climbing to do...

Although gold and silver prices rebounded from their lows set during the recent financial market break, open interest in the Comex gold and silver futures is not growing, says George Gero, vice president and precious metals strategist at RBC Capital Markets, meaning that new buyers are not coming into the market. Open interest represents the number of positions left available to trade at the end of a session. Gero pegs support at $1,575 an ounce and resistance at $1,675.......RESOURCES

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