GOLD: STRATEGIC SUPPORT BREACHED
August 11th, 2008WARNING: This is not a recommendation to buy, sell or hold any financial instrument.
There it goes… $850 was the BIG one.
Via: Market Watch:
Gold futures dropped to their lowest level of the year Monday afternoon as a decline in oil prices and strength in the dollar sent the precious metal’s prices down by almost as much as $40 an ounce in electronic trading.
Gold for December delivery fell to a low of $825 an ounce in Globex electronic trading. That’s gold futures’ lowest price since late December. It was last down $31.80, or 3.7%, at $833.
The contract dropped $34.80, or 4%, to $830 an ounce on the New York Mercantile Exchange.
“Following a feeble and half-hearted recovery attempt, gold prices suffered an even greater wash-out than last Friday’s disastrous run to the downside,” said Jon Nadler, a senior analyst at Kitco Bullion Dealers.
On Friday, gold dropped $13.10 an ounce to chalk up a weekly loss of nearly 6%.
The former all-time high of $845 did not appear to have any significant support, and the steep drop in prices “may be very difficult to recover from,” Nadler said.
“We’ve got stronger dollar, weaker crude and a large-scale commodity liquidation working,” said Zachary Oxman, a senior trader at Wisdom Financial.
So short it down to $710? That’s about where the next support is right?