mines prices markets

Since gold is volatile and will react to most economic indicators, especially announcements from the Federal Reserve. The gold price is sensitive to a number of scheduled U.S. and Euro area macroeconomic announcements—including retail sales, non-farm payrolls, and inflation. Gold’s high sensitivity to real interest rates and its unique role as a safe-haven and store of value typically leads to a counter-cyclical reaction to surprise news, in contrast to their commodities. It also shows a particularly high sensitivity to negative surprises that might lead financial investors to become more risk averse.

Just about any investors could have and should have “sold” gold this week. All the signs were there. Gold had climbed to an unsupported level, on a combination of market indicators and geopolitical worries combined with uneasiness over Greece and the Eurozone.

Recently, a new economic indicator has been added to the markets, it is called Ben Bernanke, every time this man speaks gold drops.

The last time Fed head Bernanke spoke gold plunged close to 75.00 in minutes. When the FOMC released their minutes and statement, telling the markets they were going to hold rates close to zero until 2014 gold dropped like a lead balloon.

The drop in gold today was predictable and from the basic trading manual for beginners....READ MORE